“8% yield in Cayenne!” If you have ever browsed property listings in French Guiana, you have come across this kind of promise. Yet between that advertised figure and the net rental yield you actually pocket in French Guiana, the gap often reaches 2 to 4 points. After several years supporting owners across Cayenne, Rémire-Montjoly and Kourou, I can confirm it: people almost never get the rent wrong, they get the costs wrong. Here is how to set up the calculation properly, with real figures from the local market.
Why the advertised gross yield in French Guiana is misleading
Gross yield is a simplistic division: annual rent ÷ purchase price × 100. It ignores everything that makes up the reality of an investment in French Guiana:
- Acquisition costs: notary fees (around 8% on existing property), possible upgrade works (air conditioning, anti-damp treatment, mosquito screens).
- Recurring costs: property tax, building service charges, landlord (PNO) insurance, maintenance accelerated by the equatorial climate.
- Rental vacancy, which varies a lot by town: low in Cayenne and Rémire-Montjoly, more pronounced in Saint-Laurent-du-Maroni on certain segments.
- Taxation, which differs depending on whether you rent unfurnished, furnished long-term or short-term.
In French Guiana, these items weigh proportionally more than in mainland France: the climate wears out equipment fast (an air conditioner needs replacing every 7 to 10 years, budget 800 to 1,500 € per installed split unit), and overseas (DOM) insurance premiums are 15 to 30% higher than in mainland France.
How to calculate the net yield of your rental in French Guiana
The pre-tax net yield formula
A serious yield calculation in French Guiana is done in three steps:
- Real annual rent = rent × 12 × occupancy rate (not just × 12).
- Annual costs = property tax + non-recoverable service charges + PNO insurance + maintenance + management + accounting.
- Net yield = (real rent − costs) ÷ (purchase price + notary fees + works) × 100.
Note the denominator: what counts is the total acquisition cost, not the advertised price. On a 150,000 € property, the 12,000 € of notary fees and 8,000 € of refresh works on their own already cut the yield by 0.8 points.
Overseas (DOM) rental costs you must never forget
Here are the orders of magnitude I observe on the ground for a one- or two-bedroom flat on the island of Cayenne:
- Property tax: 900 to 1,600 €/year depending on the town (Cayenne and Matoury sit at the top of the range).
- Building service charges: 80 to 150 €/month in recent developments with a pool or concierge, of which only part is recoverable from the tenant.
- PNO insurance: 180 to 300 €/year in the overseas territories.
- Air conditioning maintenance: 120 to 200 €/year for cleaning and refilling, essential in this climate.
- Works/wear provision: budget 1% of the property value per year; humidity and salt (for properties near the Rémire-Montjoly coast) are unforgiving.
- Rental management: 6 to 8% of rent for long-term lets, 20 to 25% for short-term concierge management (but with far higher gross income).
Worked example: a one-bedroom flat in Cayenne, gross vs net
Let’s take a concrete and representative case: a 48 m² air-conditioned one-bedroom flat, bought for 145,000 € near the Place des Palmistes, 15 minutes from Félix-Éboué airport.
Scenario 1: long-term furnished let
- Rent: 780 €/month, i.e. 9,360 €/year in theory.
- Advertised gross yield: 6.5%.
- Real vacancy (3 weeks/year on average): −540 €.
- Property tax: −1,250 €. Non-recoverable service charges: −720 €. PNO: −220 €. AC maintenance and minor repairs: −600 €. Management at 7%: −617 €.
- Pre-tax net income: around 5,413 €.
- Total acquisition cost (notary + furnishing included): 162,000 €.
- Real net yield: 3.3%. Half the figure in the listing.
Scenario 2: short-term let with concierge service
French Guiana has a precious feature: its short-term rental demand is not only tourism-driven. Space-program staff on assignment in Kourou, reinforcement doctors, military personnel, researchers heading to the Nouragues reserve: stays of 5 to 30 nights are constant all year round, with a peak in the dry season (mid-July to mid-November) and around Ariane 6 launches.
- Average rate: 72 €/night, realistic occupancy of 62%: around 16,300 €/year.
- Full concierge service (cleaning re-billed to the guest): −22%, i.e. −3,586 €.
- Identical fixed costs (property tax, service charges, PNO): −2,190 €. Energy and internet at your expense: −1,560 €. Increased wear: −900 €.
- Pre-tax net income: around 8,064 €.
- Real net yield: 5.0%, with the bonus of the actual-expense LMNP scheme that lets you depreciate the property and neutralize tax for several years.
The real furnished-let profitability in French Guiana therefore tips clearly in favour of well-managed short-term renting — provided the property is in a demand zone (Cayenne, Rémire-Montjoly, Matoury for the airport, Kourou for the Space Centre) and the operation is professional. Our complete French Guiana guide details the strengths of each town.
