Wednesday, 5 January 2011

A Brief Introduction

A popular way to invest in property in France is to buy a leaseback property which benefits from a government-backed VAT-refund incentive, designed to encourage investment in tourist residences.

Through freehold ownership of an apartment or cottage that is leased back to a management company for a minimum period of 9 years, investors benefit from guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges.

Main features of a leaseback property :

• A freehold, fully furnished property

• Investor entitled to benefit from the 11-19.6% VAT rebate

• Property leased to a reliable management/tourist company for minimum 9-year period, with automatic renewal for a further 9 years

• Investors receive index-linked, guaranteed annual return of up to 4.5% with options for personal usage

• No running charges or maintenance costs

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