Real Estate News Blog July Archive

French property: posh pads that pay their way

By Art C. Ryder at 07/08/07 02:51

Illustrates the feasibility and profitability of buying and leasing back real estate properties in France as an investment. French laws give investment buyers tax breaks over the short and long term provided they have limited use of the property. Property managers are extolling the virtues of buying investment properties which can also double as a holiday or vacation spot.

Some details: The purchaser buys the freehold and leases the property to a management company to let, usually with guaranteed rental returns. The buyer has limited use of the house and is exempt from the 19.6 per cent VAT payable on French property transactions, provided that he does not use it as his primary residence and lets it for 20 years. After 15 years’ ownership, capital gains tax is also cancelled.

Original source: . French property: posh pads that pay their way