VAT Rebate

Aquiring an apartment in a residence with services and lease it back to a unique management company for 9 years enable you to get the VAT on the price refunded (19.6% in France).

Example :

Apartment : € 179,400 VAT incl.

VAT : € 29,400

Cost: € 150,000

This represents an immediate saving of 19.6% on the cost VAT excluded or a reduction of 16.39% on the price of your apartment VAT included.

The different tax status:

In a residence with services, where apartments are rented out furnished by a management company, we distinguish 2 possibilities:

The Non Professional Renter of Furnished Accomodation status (NPRFA or LMNP in French)

The Professional Renter of Furnished Accomodation status (PRFA or LMP in French)

In both cases, the incomes (rents) are declared under the fiscal scheme of the ICPs (Industrial and commercial Profits, BIC in French).

This tax scheme is the most interesting solution in terms of tax cut on incomes.

Indeed, the ICPs enable you to offset the depreciation of your property against the rental incomes generated by your property. That way, you will pay no or very little taxes on the long term. It is a very good solution in order to build up complementary incomes, above all in the frame of a pension scheme.