Leases have improved with some major French tax changes, more on that later. With a French leaseback, you buy a property, usually in a ski, beach or golf development, and receive the local tax (VAT). VAT is applied at 19.6% in France. In addition to this substantial benefit, he received a guaranteed rental income for initially 9 to 11 years.

How much does the property price appreciate?

Here are some examples provided by the largest leaseback developer in France:

Meribel 1-bedroom apartment purchased in 2003, valued at 118.3% when sold in 2006.

Coudalere 1 bedroom apartment purchased in 2004, valued at 97.4% when sold in 2006.

Of course, we cannot guarantee such high levels of growth in future purchases.

sips

Another great tax benefit for UK buyers is the benefit of purchasing a lease within your SIPP. Many of our developments are classified as “commercial” and can be included. We have leasebacks in France and Spain that can be included in SIPPs.

INCOME TAX

There has been a recent clarification of a new French law on VAT and leases. Following the sale of a leaseback property, owners now no longer have to pay prorated VAT as long as the new buyer continues the lease; therefore, the new buyer does not have to pay VAT either.

OUR TOP TIP: DOWNTOWN PARKS

Lac de l’Ailette, the first Center Parcs Europe Domain developed by the Pierre & Vacances Group, opens in July 2007.

The new generation of Center Parcs is in a league of its own: with high-quality furnishings, LCD screens, private terraces, and three different types of cabanas.

We expect reserves to sell out quickly; contact us if you want to book.