French Leaseback Property

Following on from the considerable growth in the French tourism industry, the French government set about encouraging investment in the construction of tourist properties throughout the country. By offering incentives to investors, such as refunding the VAT on property purchases, French leaseback property has become one of the most popular purchases for overseas investors in recent times.

So how does French leaseback property work as an investment? When investors purchase the freehold for an off plan property in France, the price includes 19.6% value added tax. However, the French leaseback property scheme sees the full value of the VAT refunded back to the investor, thereby replacing or significantly reducing the value of the deposit on the property.

Following the purchase, the property is then released back to a specialist property management company who in turn look after the management, maintenance and rental of the property for a period of 9 to 12 years. In return, the investor will receive a guaranteed annual rental income from the company, often accompanied with a short period of personal usage.

Understandably, given the guaranteed nature of the rental return, the French leaseback property scheme has proven highly successful in recent years as overseas property investors look for relative safe havens for their investments.

We offer a wide range of French leaseback property throughout the country, ranging from luxury apartments in ski resorts such as Val d'Isere and Tignes, through to spacious villas in Provence and the Cote d'Azur.