Drum: ADVERTISEMENT FEATURE
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Leaseback Investments In France
Y ou can buy a dream holiday home or overseas investment property and cover most or all of the
mortgage costs with a guaranteed rental income (typically 3 to 7 % ). T he rental income is
guaranteed by a management company that rents the property on your behalf for 9 years
typically. Y ou also don’t pay V AT on the property, which saves you the 19.6 % - a nice discount!
HOW IT WORKS
All of your interest and a large
part of your capital repayments
can, therefore, be covered by the
rental income received. Also, the
mortgage interest can be set
against your F rench tax liabilities,
usually making the income tax
F RE E in F rance for most of the
L easeback period. I f this sounds
like a good investment, then a
‘L easeback’ scheme is right for
you.
Some new properties for sale in
F rance
have
negotiated
a
‘Residence de T ourisme’ status. T his
means that a purchaser can buy
the freehold of the property with
or without a mortgage and then
lease it back to the developer or a
rentals company for a predetermined period