Use LMNP short term rental to claim 20% VAT back on new construction
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Use LMNP short term rental to claim 20% VAT back on new construction

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This post is also available in: German

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.

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, VAT must be added

Our partner accountant Inextenso in Cannes, will guide you through the paperwork.

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.

<a href='https://www.freepik.com/vectors/infographic'>Infographic vector created by macrovector_official - www.freepik.com</a>

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, don’t hesitate to contact us here.

For more information, contact Ab Kuijer at ab@livingonthecotedazur.com. Read more about how to purchase a property in France when you are abroad.

 

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About The Author
Ab Kuijer

Founder of Living on the Côte d'Azur, the luxury real estate portal with personal service. Experienced communicator and marketeer. Former radio, TV and advertising producer in Amsterdam. Author of the book: ‘Think Small, Grow Big’ that explains why advertising is dead. Ab Kuijer is Living on the Côte d'Azur since 2006 for the obvious reasons: sun, sea, wine and healthy food. Became on the French Riviera the first Dutch President of the British Chamber of Commerce, later rebranded the Riviera Business Club. Happily married to Jojo. Reads and writes 2000 words per day about different topics. xxxxxxxxxLiving on the Côte d'Azur is the first real estate portal with personal service. A daily fresh collection of more than 1700 high-value luxury properties and new construction projects along the French Riviera; from Menton to Saint Tropez. We are also present with local teams in Paris, Ibiza, Portugal, Mauritius and Tuscany. Clients recommend us for being responsive, professional, honest and accurate. xxxxxxxxxxxxWith local multi-lingual teams, Living on the Côte d'Azur provides an excellent service for foreign buyers, helping them on the journey from a long-list selection towards visiting the short-list. We explain how French real estate law works, and guide the buyers through the impressive French paperwork until the signature at the notary for the final deed.