Introduced in the mid-eighties by the French government, the ‘leaseback’ scheme entitles the owner of a qualifying property – ask the estate agent – to a guaranteed rental income, exemption from VAT (currently 19.6 per cent of the purchase price), and use of the property for a limited period each year, ranging from one to six weeks but generally no longer. The scheme has proven to be an ideal scenario for many Britons who use their second home for only a few weeks each year. While adopted nationwide, naturally the scheme has proven most popular in France’s major tourism areas. Cidric Ricci of French estate agents Conseil Patrimoine has seen the growth of ‘leaseback’ on the Cote d'Azur.
“In Nice, for example, despite three new build apartment blocks being accepted as Residence du Tourisme there are still not enough properties to meet the demand for rented accommodation,” said Ricci, “Hence the reason why there is so much confidence in ‘leaseback’ from foreign buyers and French developers alike.”
