On a new build property purchase in France you pay a VAT of 20%. Though the French Tax administration has a scheme where you can claim this tax back and it is really straightforward to do.
To claim the tax back you have to purchase the property on the basis you will do short-term furnished rentals and provide “hotel-type” services. The reason the authorities have introduced this scheme is because short-term furnished rentals usually service tourists thus boosting the economy of the region.
You need to provide three of the following four services:
- Reception of guests (handover of keys/meet and greet)
Renting your property, especially a new build, has many other advantages. We help owners maximise the benefits of owning a property in Val Thorens. We also have a network of accountants and property management professionals that can help you ensure you have the right documentation for the reclaim.
If you are purchasing a new build property that you don’t intend to live in year round, you might as well effortlessly save 20% whilst generating revenue.
You also need to make your property available to rent for a reasonable amount of time in the season. Please note, you are reclaiming the VAT and therefore need to have the funds available when signing the final contract.
Please contact us if you would like any further information on this scheme. Please note we are not accountants but we help numerous owners with this reclaim.