Why should you buy a Leaseback property?

19.6% VAT rebate on the property 6 months after physical completion
 Guaranteed rental income which provides security on the mortgage repayments and provides a long term income stream should you keep the property beyond the mortgage period making an interesting complement to any other pensions you have in place
 Flexible personal usage making it an excellent way to combine investment and leisure
 Fully managed by a management company taking care of all the day to day running of the property including maintenance taking away the usual hassle in owning a property abroad
 Fully furnished and equipped property removing the normal inconvenience of furnishing a property abroad

Leaseback property or “Residence de Tourisme” was introduced in France over 20 years ago as a way of creating quality tourist accommodation for the world’s most popular tourist destination. Some 20 years on and France remains the world’s top tourist destination and the number of French and growing overseas investors that have benefitted from the Leaseback scheme has had a significant impact both on individual’s wealth creation and the tourism sector.

Owners benefit from a fixed rental income over a period of time, 19.6% VAT rebate, personal occupation and a hassle-free investment.


Leaseback is the purchase of a freehold property in a predefined holiday resort or building that is immediately leased back to a management company who will pay a guaranteed rental income for a period of 9 or 11 years.

Regardless of whether the property is vacant or occupied the management company has entered into a contract with the Lessor to provide a rental income, which is index linked (INSEE). Throughout this period the management company undertakes the day to day running of the property, marketing and maintenance.

Owners will benefit from a refund or rebate on the VAT which is 19.6% and only applies to new build property. Reclaiming of the VAT is usually completed between 6 to 9 months after physical completion of the building.

Owners can often benefit from personal occupation of the property if they wish, however it often depends on their fiscal situation in their home country (e.g. leaseback property can be included in SIPPs in the UK, but ONLY if it is treated as commercial property). We recommend that you seek specific tax advice from your own advisors.

For further information about Leaseback and whether it is suitable for you please contact a sales consultant today.