Good news for property investors looking for new constructed real estate in the South of France. We have teamed up with professional service suppliers (French tax accountant and para hotelier services) to comply with the fiscal rules for LMNP properties with a touristic destination. If you buy a new apartment, you can ask the French tax office to pay you back the 20% VAT. So, when you buy for 800,000 euros, you can immediately receive 160,000 euros back from the French state after signing the final deed.
How to claim 20% VAT on new construction back?
You can claim back 20% VAT from the French tax office when you buy a new property on the French Riviera and allow this investment to be available for short term seasonal rental. You do so with a yearly contract with a concierge service or para hotelier. They will market your property and give the tenants a real hotel service. The owner must renew the contract each year, but you can also change from hotel service.
If you decide to sell after ten years, you will have to pay back the outstanding years, in this case, 10 years is 50% of the 20 years and so, you pay back 50% of the amount you received to the French tax office.
There are a few simple rules to comply with the LMNP law:
- You must sign a contract with a licensed para hotelier service
- The property must stay on the short term rental market for 20 years
- On the rental price, 10% VAT must be added
Our partner accountant Inextenso in Cannes will guide you through the paperwork, from start, the yearly tax declarations and when you decide to sell it.
More rental properties for growing French tourism
France is one of the most popular destinations in the world. The French Riviera attract yearly over 13 million visitors. By offering more properties in the seasonal rental market, the French government stimulates the tourist sector.
The LMNP law gives investors in new French Riviera real estate extra motivation to buy a larger property. A larger and more luxury property will increase revenue for the owners. And the French government wins with every rental when you add TVA to the rental price.
At this moment, we have para hotelier services for the region Sainte Maxime, Theoule, Cannes, Golfe Juan and Antibes. If you offer hotelier or concierge services for the Nice and Monaco area and you comply with the LMNP restrictions, don’t hesitate to contact us here.
For more information, contact Ab Kuijer at [email protected].