French Real Estate Market | Cote Azure
The French rental market is very active thanks to the high percentage of families living in rented houses (about 55% against 25% in Italy). There is therefore a strong demand for residential rental in France.
In addition, the habit that young French people begin to be independent from the age of 19-20 increases the demand even more, for the one-two-room apartments yields of up to 7-8% gross.
Precisely because of this strong demand for rental housing, France has studied real estate laws specifically designed for leasing, where a high income can be guaranteed thanks to agreements with management companies.
In this case, the buyer will take a French VAT number as: LOUEUR MEUBLE ’NON PROFESSIONEL (LMNP) - in Italian non-professional furnished rentals - which will allow him to be taxed not as a private property owner but as an entrepreneur.
The property will therefore become an indispensable instrumental asset to carry out his business and he will be taxed as a sole proprietorship. business on their own.
Recovery of VAT: by purchasing a new property, the sale price TTC (including all taxes) includes the VAT (VAT in Italy) which today is equal to 20% of the HT price (net of taxes). If the services offered by the manager include at least three of the reception services, apartment cleaning, breakfast and supply of linen, the services that are billed to tourists enter the TVA field and therefore the activity is also submitted to TVA. Since your property is an essential instrumental asset for carrying out your business, you will have the right to recover the TVA included in the sale price (in many cases you will not even have to pay it at the time of purchase because it will be the seller who anticipates it and has it reimbursed on his tax account), if the TVA is paid by the buyer, it will be returned to him by the French tax authorities within five months of the delivery of the property by direct crediting to his current account at a French bank. This recovered TVA will remain pending for a period of 20 years.
Type of properties
The real estate structures can be: Tourism Residences, Residences with Services, Hotel Residences, Student Homes, Structures for the Third Age.
All information is purely informative and does not lead to a contractual obligation.