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COVID-19 UPDATE
New Lockdown declared in France as of Friday 30th October

We are now in a new lockdown period in France.

If this means you can no longer come and visit properties with us in person, you can rest assured that we are continuing to work for you. We are doing the following:

  • Updating and adding new properties on our website
  • Exchanging emails and calls with buyers and vendors
  • Putting together property lists, sending you available information and material on your preferred properties
  • Accompanying you on live virtual tours
  • Taking on new sales mandates
  • Carrying out virtual signing using an e-signing facility for all legal documents.

The buying process will continue for all the ongoing sales as notaires, banks, administrations and France Property Angels continue to work.

With our best wishes to all our clients from the France Property Angels Team

CLAIMING VAT BACK ON PROPERTY PURCHASE


This article is one of a series that has been provided to France Property Angels by SAREG. SAREG provides bi-lingual services in accountancy, international businesses and investments and has team of English-speaking staff to assist with your needs. Please visit sareg.com to find out more.

CLAIMING VAT BACK ON PROPERTY PURCHASE

If you are purchasing a new or recent property in France as an investment, to use for a furnished rental activity, it may be possible to claim back the VAT paid at the time of purchase. However, there are a number of strict conditions applied to this procedure and in some cases it will not even be possible.

SUMMARY OF PRINCIPAL CRITERIA FOR VAT RECLAIMS

ACCOUNTING SERVICES including VAT RETURNS

As French chartered accountants, we can of course provide all the above services for you, including the application for the VAT reclaim, liaison with the tax authorities and on-going VAT declarations. We can look after your annual accounts and payroll, if you have salaried staff, including drawing up contracts (either long-term or seasonal) and all the social declarations that have to be made in this respect.

If you wish to run an activity offering hotel-type services, please contact us for more information about your individual circumstances and to get an idea of annual accountancy fees. Generally, our fees are charged on an hourly rate basis according to who is dealing with your file but when we know more about your particular project, we should be able to give you an indication of annual fees for the pure accountancy and social declarations side of our services. As there are so many options relating to this type of activity, it is difficult to give an annual idea of budget prior to individual discussions.

However, the one-off VAT reclaim of the 20% paid on purchase will carry an additional fee in your first financial accounting period (around 1,000€ + VAT, according to time spent). On-going accounting fees should then remain the same as your estimated budget year-on, unless your circumstances change, or in the event our fees should increase in the future.

Any additional consultations, research or queries outside of the general running of your accounts will be invoiced on top of the annual fee and there are also one-off registration fees to get the business registered at the beginning of the activity. These fees will vary according to the type of business structure required in your individual case. Again, this can all be confirmed once we know your individual situation and the type of business structure that will be created for this activity.

LEASEBACK PROPERTIES & ACCOUNTS

In the event you purchase a property via a particular leaseback agreement, where you are obliged to sign a commercial lease with the tour operator and receive an annual rent for the use of your property, fees would be less than for a para-hotel activity.

Effectively, in these circumstances, you are classed as a self-catered furnished rental landlord with a long-term lease to a TO, who provides the hotel-type services and charges the VAT to the guests. You simply have to file VAT declarations via a special system known as auto-liquidation. This is the only circumstance where the self-catered furnished rental activity is liable to VAT (otherwise, that activity is outside of the VAT regime).

Please note that the details provided in this information sheet are correct at the time of drawing up this document but that you are advised to check whether they are still valid at the time you wish to invest or make a VAT reclaim.

 

We at France Property Angels hope that you found this information useful. While you are here why not take a look at our Property For Sale in the Alps and the South of France.




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© Copyright Campion (UK) Ltd 2017.
FRANCE PROPERTY SALES SARL C.P. No CPI 7401 2016 000 004 662