Property OBO in Corsica: the strategy to monetise without selling
Do you own an exceptional property in Corsica but wish to unlock capital without losing it? The real estate Owner Buy Out (OBO) is arguably the most powerful — and least understood — wealth management solution on the market. Here is how it works.
What is a property OBO?
An OBO involves selling a property to yourself via a newly formed SCI (Société Civile Immobilière - a French property-holding company). You remain the owner through the company while receiving the market value of the property in cash.
This operation is particularly suited to owners of high-value assets held for a long time, with little to no taxable capital gains.
The step-by-step mechanism
1. Creation of a family SCI (you + spouse + children if applicable).
2. The SCI takes out a bank loan for the value of the property (often 100% LTV - Loan to Value - in Corsica for premium assets).
3. The SCI buys the property from you at market price, and you receive the capital.
4. The SCI rents the property (to yourself or a third party) to repay the loan.
Tax and wealth management benefits
Recovery of liquidity without taxation (excluding potential capital gains), reduction of IFI (Impôt sur la Fortune Immobilière - Real Estate Wealth Tax) thanks to the SCI's debt, optimisation of inheritance via dismemberment of ownership, and total retention of control over the property.
Example: for a €1.5M villa in Porto-Vecchio owned for 25 years, an OBO allows for a recovery of approximately €1.2M net, while remaining 100% owner via the SCI.
What rates and conditions in 2026?
Our OBO commission is 3.19% incl. VAT, one of the most competitive on the market. Partner banks in Corsica offer rates between 3.4% and 4.1% over 20 to 25 years for secured OBO operations.
OBO or Life Annuity (Viager): which to choose?
OBO is suitable for owners who want to maintain total control and pass on assets. A 'Viager' (Life Annuity sale) is preferable for those seeking a guaranteed lifetime income without management responsibilities. Our firm helps you decide based on your specific situation.
Frequently asked questions
What are the costs of a property OBO?
Expect around 8 to 10% of the price: notary fees (7-8%), agency commission (3.19% at Corse Patrimoine Immobilier), SCI incorporation costs (~€1,500), and bank fees.
Is an OBO accessible for a property worth less than €500,000?
Yes, but the operation becomes economically relevant from approximately €400,000 upwards, given the fixed costs involved.
Can I perform an OBO on my main residence in Corsica?
Yes, this is actually the most frequent case. You will become a tenant of your own SCI, which has no impact on your daily life.
How long does an OBO take from A to Z?
Allow 3 to 5 months between the decision and the notarised signature, including the creation of the SCI and securing the financing.
Translated from our French edition — figures and legal terms are French law.
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