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Tax Changes to Spark Interest in French Leaseback Property

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France  Leasebacks  Charlie Williams  Terresens  Guaranteed Rental Returns  French Leaseback Property 

Tax Changes to Spark Interest in French Leaseback Property

By - Friday 20 May 2011

A proposed 20 per cent tax on second homes in France has sparked concern among potential property buyers and investors in recent days. If accepted, the plans are expected to have a negative impact on the level of foreign investment in the country.

However, experts have advised that leaseback properties which are rented out for a set period each year will avoid this equivalent of a second tax.

Charlie Williams, business development manager at Terresens, explained: "France will remain one of, if not the most popular choice for second property abroad with Brits and indeed many other nations. Leasebacks offer a safe, secure and hassle-free way of owning a home in France and its exemption from this proposed new tax is further evidence of the program's merit."

The expert added that leasebacks have risen in popularity in recent years compared to classic second home purchases in France due to the security they offer.

Leaseback owners are able to take advantage of the best both worlds, freehold ownership of a property in France and guaranteed rental income derived from the lease of the property to an appointed management company.

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