| What exactly is a leaseback property? Any property | | | | required in senior citizens' residences and an additional |
| that is fully fitted and furnished, let out on a temporary | | | | 200, 000 in student lodgings in the coming 20 years. |
| basis and which provides hotel type services such as | | | | Thanks to the French leaseback scheme, the majority |
| managed reception, breakfast and laundry facilities is a | | | | of the accommodation on offer in French ski and |
| leaseback property. It can be a holiday, business, | | | | coastal resorts is owned by French citizens and |
| student or senior citizen's residence. | | | | tax-payers. |
| Leaseback is the English translation of 'LMNP' (non | | | | When considering a property investment, it is very |
| professional lessor of furnished accommodation) and | | | | important to consult a qualified professional who will be |
| refers to a tax status rather than to the property itself. | | | | able to advise you on all the aspects of your purchase, |
| A property purchased under the LMNP tax status is a | | | | including the careful choice of location and |
| small business and as such, will fall under French | | | | management company. To protect your statutory |
| commercial law, with a special provision made by the | | | | rights, it is advisable to purchase through a licensed |
| government to encourage this type of investment by | | | | French agent who holds professional liability insurance. |
| rendering the income from the property tax-free. | | | | A leaseback property is generally thought of as a |
| Why is a leaseback property such a good | | | | long-term investment designed to provide additional |
| investment? Because you can offset all the property | | | | retirement income for its owner. It is possible however, |
| related-expenses against the rental income generated | | | | to sell the property at any time and most developers |
| by your leaseback property, the income will generally | | | | have an in-house sales office that can help with this. If |
| be tax-free and this is what makes the scheme so | | | | the property is well-located, run by a strong |
| attractive to French and foreign investors alike. | | | | management company and the asking price is fair, you |
| Thanks to this, the income can be used in its entirety to | | | | will have no trouble at all selling your property. |
| repay the mortgage and once this is paid off, investors | | | | Capital growth is steady and regular throughout |
| will benefit from a supplementary income. For a | | | | France, particularly in the coastal and ski resorts and |
| (deductible) fee, your French accountant will ensure | | | | the property market remains secure in this country. |
| that all your expenses are taken into account. | | | | Just beware of extravagant promises: 20% yearly |
| Don't forget also that you'll be receiving a full refund of | | | | capital appreciation is not realistic. |
| the 19.6% VAT, which effectively amounts to a 16.4% | | | | A French leaseback property without personal |
| discount on the value of the property. | | | | occupancy hovers around 5%, in addition to the |
| Why does the French government offer so many | | | | constant appreciation of your invested capital: an ideal |
| incentives to purchase this type of property? | | | | way to invest now towards your pension and to build |
| Some of the most exquisitely beautiful and picturesque | | | | up your family's property portfolio. |
| areas of France, where it would have been impossible | | | | While some properties are for investment only, others |
| to find suitable holiday accommodation for a family | | | | will include a personal occupancy allowance and your |
| only a few years ago, now offer a variety of quality | | | | investment can double up as a holiday home. In most |
| lodgings with top class facilities. | | | | cases, you will be able to exchange your weeks of |
| In cities where it was extremely difficult to find short | | | | personal use for use of any other property run by the |
| term rentals for business travellers or individuals who | | | | same management company, effectively enabling you |
| don't wish to stay in a hotel, the demand for this type | | | | to spend your holidays in a different area of the |
| of housing well exceeds the offer - and the | | | | country every year, without any additional expense. |
| government estimates that 200, 000 beds will be | | | | |