French Buy to Let Property Guide

4. Geographic Limits of French Buy to Lets

The scheme is only available in designated areas of the country, and is mainly restricted within these zones to towns and cities with a population of at least 50,000 residents. Some smaller coastal towns are also eligible.

This marks a significant change from the previous regimes, where tax breaks were more generally available across the country, with the result that many schemes were driven by the tax incentives they offered, not by the local demand for rental property.

By tightening the geographic boundaries of the new schemes, the government hopes to ensure that new developments will not sit empty, and that a satisfactory return will be available to investors.

As always, however, if you are looking to invest, you need to do your homework on the level of local demand for rental property, on the market price for similar property in the area, and the likely return on your investment. Just because the scheme offers a tax break does not necessarily mean it is an attractive commercial proposition.

At a glance 'Buy-to-Let' and 'Leaseback' properties appear very similar, but they are different in a number of respects.

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