Investing in an EHPAD: the promise of a golden retirement?

In recent years, many investors have seen a new solution to increase their wealth and income while benefiting from a tax-efficient status: investing in an EHPAD.

What is an EHPAD?

It is an “accommodation establishment for dependent elderly people”, in other words a retirement home. These medicalized structures, which may be public, private, or private for-profit, provide accommodation in single rooms for elderly people who are no longer able to live independently at home. There are almost 7,750 of them in France, with capacities ranging from 50 to 120 beds.
With the ageing of the population, EHPAD are expanding rapidly. This trend will not be reversed.

The advantages of investing in an EHPAD

The investor in EHPAD has the choice between two advantageous tax statuses. The first is the LMNP status, with the ICP tax regime (Industrial and commercial profits) which originally benefited professional furnished tenants. The second is the Censi-Bouvard scheme, with the benefit of a tax reduction equivalent to 11% of the amount invested (maximum 300,000 euros), in the case of the purchase of a new property.

If you are interested in investing in an EHPAD, the main question to ask yourself is: how do you choose the right EHPAD to invest in?
The EHPAD must be in a geographical area where there are enough elderly people to be profitable. It is important to check that there is not too much work to be done.

The constraints of investing in an EHPAD

The risk, linked to the evolution of regulations and strict maintenance standards, is that the EHPAD will one day cease to be one, if the State refuses to renew the approval.

But at present, the EHPAD is a safe solution with an interesting profitability.

If investment is important to you, please read our article on investing in mobile homes