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

5. Tax Advantages of Leasebacks

The tax breaks that apply to these developments are known as loi Bouvard.

There are no zonage limitations concerning the availability of the tax concessions available under the loi Bouvard.

Neither are there any restrictions on the level of the rent.

As well as résidences de tourisme classées the breaks are also available for investment in student accommodation, and to care homes for the elderly.

All developments benefit from a refund of the VAT payable on the acquisition and works. The rate is 19.6% for new development, but will be between 0% and 19.6% for an existing development to be renovated, depending on the circumstances of each case.

The tax break for investments is available for nine years, at the rate in 2009 of 25% per year.

For investments made in 2010/12 the tax exemption cannot be greater than 20% plus 8% of total income per year for nine years.

The maximum purchase price on which the concession is available is €300,000.

If you are unable to make use of the full tax concession in a single year, then you can roll it over for six years.

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Next Page: Selling your Leaseback Property