French New Build and Off-Plan (Sur Plan) Property Investments

When deciding on a suitable property investment in France many investors look towards new build properties and there are a variety of reasons behind such a decision. As in the UK new build properties are covered by a 10 year structural and 2 year fixtures and fittings guarantee giving investors peace of mind.

In an effort to persuade a higher level of home ownership in France the government has also introduced a number of tax breaks which are available depending on the location, price and whether you decide to let your French new build property furnished or unfurnished.

Advantages of new build and sur plan Properties in France

• 10 year structural guarantee.
• 2 year guarantee on fixtures and fittings.
• Legal fees are charged at a lower rate (3-4% rather than 7+% for older properties).
• Strong capital appreciation.
• A modern well constructed property built to strict regulations.
• Lower maintenance\running costs.
• Payments can be made at different stages of construction.
• Developers are obliged to ensure bank guarantees are in place for residential developments.
• VAT Charged at just 5.5% for first time buyers, when purchasing in any participating ‘Zone Urbaine Sensible’

Letting Property and Tax Regimes in France

If you plan on letting your new build property you may be eligible for a number of tax breaks depending on whether the property is furnished or unfurnished and to whom you wish to rent the property.

As long as your rental income does not exceed predefined thresholds you can also opt to be taxed in slightly different ways as described in the French-property.com guide to letting property in France.

View our new build properties for sale in France

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