Due to the tax breaks it is very unikely that you will pay any income tax in France on your leasebacks.

income tax

Most investors in Leasebacks will be considered to be louer en meublé non professionnel (non-professional landlord) and therfore fall under a simlified tax system in France.

It's highly unlikely that you will pay any income tax on your property here.

inheritance tax

This is a specialist subject and depends on the structure of your family. Call us and we'll let you know how to make sure that everything is allocated in the manner you prefer.

capital gains tax

This tax is payable on the sale of land or buildings, and is calculated on the difference between the sale price and the original purchase price.

As a EU resident, capital gains tax is just 16% and a non-EU resident pays 33.3%. 

In calculating the gain on property, there is a 10% reduction in the taxable gain for each complete year of ownership after five years. So after 15 years, you are capital gains tax free.

local property taxes (tax fonciere)

This annual tax is imposed on the owner, whether or not the property is actually occupied by them or rented out.

Like UK council tax it is based on a notional rental value determined by condition, size and location of the property.  It is suggested to allow 30 euros per square metre a year for this tax.

There is also a ‘tax d’habitation’ which is imposed on the occupier of a property.  Therefore, if you rent it out on a regular basis the tax is paid by your tenant which in the case of a leaseback would be your management company.

However, new buildings, additions to exisiting buildings and rural conversions may be exempt from this tax for 2 two years.

call on 0161 976 5656