Recovering VAT on Real Estate mountain investment
Ski Property Investment in Châtel: Recovering VAT on Real Estate
Save 20% on the purchase price of your apartment in Châtel thanks to VAT recovery!
Under certain conditions, it is possible to purchase real estate in a ski resort while deducting VAT from it. The 20% discount on the purchase price is subject to conditions, but these can be arranged flexibly so that you may use and enjoy your apartment in the meantime. By acting as a rental management company, we can give you access to these tax benefits based on the following options.
1 – The property is rented out fully furnished with a range of hotel services that include at least 3 of the 4 following services:
– Reception for key collection,
– Household linen,
– Cleaning service,
– Breakfast catering, doorstep delivery.
2 – The property is rented out using a rental management company. A flexible commercial lease will allow you to define the rental periods according to your own preferences.
Meeting these conditions allow you to enjoy your property. By entrusting rental management to a local company in Châtel, you free yourself from administrative obligations and the need to be present on-site. You offer services to your tenants, while reserving the right to book your own occupancy schedule.
Your reward: you get both rental income and VAT recovery.
VAT recovery following the purchase of your apartment
When buying a newly built property, the total VAT-inclusive price of the property is due. VAT is then recovered within 3 to 6 months.
When buying off-plan in France under a VEFA contract, you can purchase the apartment directly at the VAT-exclusive price. Payments are scheduled according to construction progress, and while they may include VAT, the latter can be deducted from each successive payment!
To fully benefit from this advantage, you must rent out and keep your property during a 20-year period. If not, VAT will have to be refunded accordingly.
As the owner of your property, you may of course decide to sell it before the 20-year period expires, in which case VAT refund will be applied based on the original purchase price, not the resale price.
– If you sell it to someone who wishes to keep the lease, you will not have to pay VAT.
– If you sell it within 10 years, VAT will no longer be recoverable and you will have to refund the amount received.
– If you sell it after 10 years and the buyer wishes to terminate the lease, VAT may be claimed by tax authorities on a pro rata basis (e.g. 50% after 10 years, that is, half the 20-year regulatory period). That said, the rental income generated will largely contribute to covering the remaining amount of VAT.