Guide to French Leaseback Properties

  1. Introduction to French Leasebacks
  2. The French Leaseback Market
  3. How Leasebacks Work
  4. Contractual Agreements for Leasebacks
  5. Tax Advantages of Leasebacks
  6. Selling your Leaseback Property

1. Introduction to French Leasebacks

French 'leaseback' properties are a Government backed initiative aimed at encouraging the development and purchase of property in the rural and tourist areas of France.

The developments are known as Résidences de Tourisme.

Leaseback properties are short term rentals in tourist regions of France, whereas buy-to-let properties target long term\permanent residents.

On a leaseback property you enter into a commercial lease with an operator, whereas there is no intermediary with buy-to-let properties.

No refund of VAT is available under buy-to-let, whereas this is the case with leasebacks.

Leasebacks can make for attractive long term property investments, but as always, you need to select your property with care to ensure that the will be able to achieve the return on your investment.

You should also satisfy yourself as to professional competence and financial stability of the operator.

Neither are the developments a suitable permanent home for retirement, as other residents within the development tend to be holiday makers.

Leaseback properties are available in many regions of France, all of which benefit from a refund of VAT on the purchase price, but a reduction in income tax is only available in designated areas of the country.

Be sure you take independent professional advice before you invest in any of these developments.

Next Page: The French Leaseback Market