Property OBO: receive the price of your property and keep it in the family
You sell a rental property to a company you control. It borrows to pay for it: you receive the price, the rent repays the loan, and you keep control of the property. Hyppo, as a broker, seeks the company's financing.
A personal reply from an adviser
- Release liquidity without selling to a third party
- Prepare the transfer through the shares
- No investment required in return
An OBO, or owner buy-out, is the sale of a property to a company you control, often an SCI or a holding company subject to corporation tax. The company borrows to pay the price, and the rent repays the loan. You receive the price, and the property stays in the family.
Hyppo is a broker: it does not lend. It checks with you that the operation stands up financially, then seeks the company's loan among more than 65 partner banks.
For which projects?
Release liquidity from a paid-off property, without having to sell it to a third party.
Pass on wealth your property by then gifting the company's shares.
Reorganise your assets in a single operation, before a notary.
Reinvest the sale price in another project.
As a guide: a residential or commercial rental property, rent that can repay the loan, and tax residence in France. Each file is assessed case by case.
What an OBO makes possible
Release liquidity
The sale price goes to the seller, who can invest, gift or reinvest it, without having sold to a third party.
Prepare the transfer
After the sale, the company's shares can be gifted to the children, with the help of the notary.
Keep control of the property
The property changes owner, not family: you control it through the company.
What Hyppo does for you
- 01
You know whether the operation stands up: rent, the company's debt, guarantees.
- 02
A structure proposed for your case: amortising or interest-only, mortgage or pledge.
- 03
Work in liaison with your notary and tax adviser, who cost and secure the operation.
- 04
No investment required in return: the sale price remains yours.
How it works
You have your notary calculate the capital gain and duties on the operation.
You set up the company, or use an existing one, and the property is valued.
Hyppo seeks the company's loan, and you receive the offer.
You sign the sale and the loan at the notary's: the company pays the price, and you receive it.
Why go through Hyppo for your OBO?
Taxes calculated in advance
Capital gains, transfer duties: your notary calculates them before signing, and the financing is built on those figures.
A single operation
The sale and the company's loan are signed together, at the notary's.
No investment required in return
The sale price is yours: nobody asks you to invest it in return for the loan.
A registered broker
Hyppo (REFI Technologies) is registered with ORIAS under number 23005573 as an intermediary in banking operations and payment services.
Frequently asked questions
Another question about your situation? A Hyppo adviser will answer.
What is a property OBO?
It is the sale of a rental property by its owner to a company they control. The company pays the price with a bank loan, often supplemented by vendor credit recorded in a current account. The rent repays the debt. The seller obtains liquidity and keeps control of the property through the shares.
Are an OBO and a sale-to-self the same thing?
Yes. Notaries speak of a "leveraged sale-to-self": you sell to a company you control, and it is the company that takes on the debt. It is called a property OBO when the property is held directly, and a share OBO when the shares of a company are transferred.
Does an OBO reduce French property wealth tax (IFI)?
No. When valuing the shares for IFI, article 973 of the French General Tax Code in principle excludes the debt taken on by the company to buy the property from the partner who controls it. The property therefore remains taxed, indirectly, as before. An OBO serves liquidity and estate transfer first.
Is an OBO an abuse of law?
Not in itself. The tax authorities can challenge it if it is fictitious or driven mainly by tax motives. A genuine need for liquidity or estate transfer, a price set by valuation and an active company reduce that risk. Have the structure validated by your notary or tax adviser.
