The French Leaseback Scheme

The Leaseback scheme is a program that enables you to buy a property in France and receive the VAT back on the property from the French government (19.6%). The property is freehold and the owner leases to a holiday rental company for a term of 9-11 years.  The scheme provides you with a rental income (3%- 5.5%), which is linked with the construction inflation rate in France (approx 3.5%) and adjusted accordingly on an annual basis. It is worth noting that even if your property is vacant for a period of time, you will continue to receive your rental income as agreed!  Additionally, as owner, you can spend an agreed number of weeks per year at your property (usually between 2-6 weeks).

A summary of the benefits of the French Leaseback program:

  • Rental income for a period of 9-11 years with option to renew
  • Expected appreciation of the value of the properties, which are located in popular destinations
  • Holiday accommodation in France for a period of 9-11 years
  • Tax breaks - including the waiving of the French VAT bill of 19.6%
  • Hassle free property management through the rental company, which handles the furnishing and fitting, and the letting and maintenance of the property
  • Properties built to a very high standard - this is ensured through the application process required of any construction company wishing to take part in the Leaseback scheme

The French Leaseback program is different from other property investment opportunities found elsewhere around the globe.  Leaseback properties are French developments, designed to appeal to the French, as well as the foreign, market, and they are priced at a level consistent with the overall French housing market.  These factors allow you, if and when you decide to sell, to offer your property to a huge domestic market.  You will not be forced to find another foreign buyer, as the property will also appeal to local buyers.

Investing in France is an attractive option because France is a G8 economy (5th in the world GDP table), and is also the most popular tourist destination in the world. In addition, the newly elected French President is expected to encourage a more business friendly regime, and the property market in France is likely to see significant positive growth.

Additional information:

For more information and a free consultation, contact French Property Ireland on LOWCALL 1850 882800, or contact@fpi.ie.