Good news for property investors looking for newly 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 in France, you can ask the French tax office to pay back the 20% VAT. So, when you purchase for 800,000 euros, you can receive 160,000 euros back from the French state after signing the final deed. Of course, the French Tax agency is not eager to pay you money back, so it needs some severe paperwork and determination. That’s why you need the help of a professional tax accountant.
How can you claim 20% VAT on new construction?
When you buy a new property on the French Riviera and allow this investment to be available for short-term seasonal rental, you can claim back 20% VAT from the French tax office. You have to open a company in France as a para-hotelier service. You can hire another company to do everything, such as cleaning, key handover, maintenance, and advertising. Their VAT invoice is deductible from your new company account.
There are a few simple rules to comply with the LMNP law (updated in 2024)
- You must open a para hotelier service company in your name and be visible on the short-term rental market.
- The property must stay on the short-term rental market for 20 years
- On the rental price, VAT must be added
Our partner, Cabinet Roche in Lyon, will help you set up your company, request to claim back the VAT and organise your yearly administration.
More rental properties for growing French tourism
More rental properties for growing French tourismFrance is one of the most popular destinations in the world. The French Riviera attracts over 13 million visitors annually. The French government stimulates the tourist sector by offering more properties in the seasonal rental market.
The LMNP law incentivises new French Riviera real estate investors to buy larger properties. More significant and luxurious properties will increase revenue for the owners. The French government wins with every rental when you add TVA to the rental price. Currently, we offer para-hotelier services for the regions of Saint Tropez, Cannes, and Nice.
For more information, contact Ab Kuijer at ab@livingonthecotedazur.com. Read more about how to purchase a property in France when you are abroad.
//
