Buy-to-Let Guide for French Property

Why Buy-to-Let in France?

Simply put the French prefer to rent rather than purchase property, in contract to the UK where home ownership levels are much higher. As a result there is always demand for good quality rented accommodation in France.

Home Ownership Levels

• 54.7% in France 1999
• 69.8% in UK 1999

Advantages of Buy-to-Let Property in France

• Long or short term investments that, whilst let, will pay for itself.
• Rental income should cover mortgage and allow for an additional income.
• Once the mortgage has been paid the property is entirely yours.
• Mortgages in France can be fixed for up to 25 years allow your expenses to remain consistent.
• 10 Year structural guarantee on building.
• Tenants tend to live in accommodation for longer than they do in the UK.
• Cost of ownership is lower than in the UK and rental yields remain similar.

New build (sur plan) Buy-to-Let Property

New build buy to let properties are popular in France as a result of a number of incentives the French Government has introduced, they include:

• Lower Legal fees for new builds (approx 3-4% compared with 7+% for older property).
• Robien – Allows for 50% Tax concessions are available when a new build property is let unfurnished for over 9 years. Tax concessions are spread across the 9 year period.
• Borloo – Allows for up to 65% Tax concessions when a new build property is let unfurnished for over 9 years. 50% of this concession is spread over the first 9 years (much like le robien). Participants then have an option to continue under the Borloo scheme for a further two 3 year periods extending the concessions to 65%.

We do advise that you speak with a French tax specialist before committing to any of the tax breaks available in France.

What are the differences between Buy-to-Let and Leaseback properties?

At a glance Buy-to-Let and Leaseback properties appear very similar but they are different in a number of respects.

• Leaseback Properties are short term rentals in touristic regions of France. Buy-to-Let properties target long term\permanent residents.
• Buy-to-Let are pure investments and do not allow you to holiday in the property.
• Wider choice of regions for your investment property.
• No issues relating to early sale and TVA\VAT rebates.

View our View our Buy-to-Let properties for sale

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