There are two ways to make money on the French Riviera; the first most obvious is to tap into the growing seasonal rentals. With a one-bedroom apartment, you can already make some extra money by renting it out.
Making money in France: seasonal rental or claim back ‘plus value’ tax
Saving your money at the bank does not help to improve your financial situation. But investing it into French riviera real estate does! A one-bedroom apartment in a popular village will generate enough income to cover the yearly costs, your airline tickets and lunches on the beach when you use the apartment yourself. If the property has a pool and or a sea view, the rental price goes up and so will your income.
Some people are sceptical because of the COVID flu crisis and the future of renting out a property in the South of France. But don’t forget; France with 68 million inhabitants has a huge internal market. The summer rental season of 2020 was one of the best, thanks to the French people from the North and Mid France that rented property in their own country.
Invest in a new villa in Port Grimaud
The new villa’s for sale with a pool at walking distance of the beaches in the Gulf of Saint Tropez offer a great opportunity. With an investment between 800,000 and 900.000 euros, you become the first owner of a brand new villa at 1 kilometre of Port Grimaud. Port-Grimaud often called the “Little Venice of Provence”, designed by architect François Spoerry in the 1960s, is known worldwide for its beauty, its rarity and its sweetness of life.
The new villa’s that are for sale are maintenance-free, with a ten-year guarantee and perfect to rent out. The estimated rental income is between 60-70,000 euros per year. Instead of looking at your bank statement, you could be looking at a sunny and more profiting investment in the South of France!
Ask for the brochure and the rental income schedule via info@livingonthecotedazur.com
Claim back your Plus Value tax
If you have sold your French Riviera property in 2018, you will have paid some profit tax, called Plus Value. The Plus Value profit tax in France is partly income tax and partly social security contributions. The social security part was debatable because you already pay social security contributions in the country where you live for the rest of the year. More information about the calculation can be found here.
This double taxation has been the subject of legal proceedings against the French State for years. Eventually, the European Court was called in and it ruled that the law had to be amended.
Submit your application for partial Plus Value refund
The Plus Value profit tax has therefore been changed in your favour with effect from 1 January 2019. Did you sell your second home in the South of France in 2018? Then it is not too late. But the clock is ticking! You can reclaim no less than 15.2% of social security contributions from the French State.
Of course, you have to fill in various awkward forms for this; French tax officials who have to pay back money to foreign homeowners would rather not make things easy for you.
French profit tax refund service solution 2018
Fortunately, we have a solution ready for you: in collaboration with a renowned legal office in the Netherlands, they can help you with a quick application for a refund of Plus Value to be submitted to the French tax authorities. However, you have until December 31, 2020, to do this. Send us a short email with your name and location of your property to info@livingonthecotedazur.com. The subject is ‘Plus Value Claim back’
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