Management of leaseback

You sign a rental agreement with the rental company. The agreement is for a minimum period of 9 years and is renewable after that period. This allows you to benefit from the very attractive VAT concession, a saving of 19.6% on the property price!

The VAT concession: The French government earns VAT on the rent paid by holiday makers and the repayment of the initial VAT concession is made pro-rata over 20 years. This means that if you sell your home within the first 20 years, the VAT balance (i.e. 11/20th after 9 years) is deducted from the selling price (within the first 5 years, the full amount is deducted). The new owner also takes over the remainder of the lease.

Rental income and personal use: The terms and conditions vary according to each development. You may get a guaranteed amount or a share of the total income but the rental company will always look after all aspects of the rental, from finding holiday makers to the services already outlined and the payment of your income. It's that easy!

The above information is provided as a general guide only. Most developments offer a specific variation of the leaseback scheme. Full details of individual schemes can be obtained from VEF.

Back to top