Last Updated on February 28, 2023 by Kristina Valcheva
Leaseback property is a unique scheme in France, which is becoming even more popular.
What are the advantages and disadvantages of having a leaseback property? What exactly is a leaseback and how does it work?
If you are looking for a hassle-free investment in property in France, especially in tourist destinations, buying a leaseback may be right for you. In this guide, you will find everything you need to know.
- In this article:
- What is a leaseback property?
- Who needs leaseback?
- What is the difference between a leaseback and a furnished rental property?
- What is the French leaseback property scheme?
- What are the leaseback and tax advantages in France?
- Will I have to pay tax on my rental income in France?
- What is the income tax for non-residents and residents in France?
- What forms should I file for my French property?
- Can I file my French tax return online?
- I still need help with my French tax return. Who can assist me?
What is a leaseback property?
A leaseback is an arrangement in which the company / tradesperson that sells the property, can lease back the same real estate from the purchaser.
In this situation, the company / business owner can continue to use the property, but no longer owns it. In the transaction, the seller becomes the lessee and the purchaser becomes the lessor.
A leaseback property transaction is the purchase of a freehold furnished property in a serviced residential building. Buyers own the freehold of the property, which is then leased back to a management company for a period of 20 years.
Who needs leaseback?
Companies use leaseback when they want to use the money invested in a property for other business goals, but want to use the same property to operate their business.
In this situation, the company can get both the property it needs to operate its business and the money from its sale.
Also, people who want to invest their money in a property and have a guaranteed annual income without any hassle of renting and managing it, with an option to use it for their own holiday.