VAT reclaim service for investors with new-build rental properties in France
Did you know that as an international property investor, you may be eligible to reclaim a significant portion of the VAT (TVA) paid on your French property purchase?
New-build properties in France are typically subject to a 20% VAT charge — but in many cases, much of this can be recovered.
At Property Tax International (PTI Returns), we specialise in helping non-resident investors reclaim their maximum VAT refund through a fast and convenient online process.
Request a call backOur French property VAT refund services
- We will manage your VAT refund application from start-to-finish
- You will receive your maximum refund from the French authorities
- We will help you claim VAT relief for renovations of your French property
- We offer leaseback rental property tax consultancy
- And more property tax services
Need help with your French property VAT refund ?
What are the requirements for a French property refund application?
- The purchase needs to be a newly built buy-to-let
- Your property must be furnished
- The real estate should not be your primary residence
- You must be renting it out on a short-term basis (you cannot rent your property for the whole year or season for instance)
- You must be offering your tenants at least three “para hotel” services
- The French Tax Administration grants the VAT rebate only if you rent out your real estate for a period of 20 years (or more). If you stop renting out your property after 5 years, you will have to pay back part of the refund that you have received
Need help with your French property VAT refund ?
Why Property Tax International?
30 years of experience
With 30 years of experience, you can trust us to guide you through your VAT refund process. Our team will ensure you minimize your tax liability by claiming all available expenses and reliefs.
End-to-end Process Management
Our tax specialists will manage the entire process from start to finish – ensuring you’re meeting your tax obligations and guaranteeing your tax compliance with the French tax authorities.
Quality service
Our ISO 9001 certification is an external validation of our strong commitment to quality, our customers, partners, and staff. The certification enables you, the customer, to rest assured that we are committed to providing a secure, quality service set out to the highest standards.
French Property VAT Refund FAQs
Yes, in France furnished rentals, both long-term and short-term, are considered commercial activities for tax purposes. This is important as it will impact how the property is taxed under French tax law.
Yes you can, but with some conditions.
20% VAT can be claimed back on a French new build property if you agree to rent it out commercially. To qualify for this, you’ll need to meet certain requirements and sign a commercial lease.
In this case, the owner must provide hotel-style services and register for VAT. Standard private residential use does not allow for VAT recovery.
Yes, the 20% VAT on newly built property can often be reclaimed if the property is operated as a furnished, short-term “para-hotelier” rental.
To qualify for this, you must provide three of four hotel-like services (reception, cleaning, laundry, or breakfast) and commit to this structure for 20 years to avoid repaying a portion of this VAT. If you stop renting out the property before 20 years have elapsed, you may have to repay a portion of the VAT rebate you received.
In specific cases, it is possible to avoid paying VAT on commercial property if you agree to rent it out commercially.
To qualify, you’ll need to meet certain requirements and sign a commercial lease.
You will be able to get back the VAT refund if you rent out your furnished real estate under the French leaseback scheme. Initially, you will have to pay the full price and then apply for a refund from the French Tax Administration.
Yes, VAT is generally recoverable on commercial property purchases in France if the property is a new build and you agree to rent the property out commercially.
In this case, the VAT paid on the purchase can usually be reclaimed from the French Tax Administration following payment.
If you are renting out a property operating as a “para-hotelier” rental you will be required to charge VAT on rent.
The taxes on property sales in France depend on the type and age of the property:
New properties: Sales of newly built properties (usually less than 5 years old) by developers or professional sellers are generally subject to Value Added Tax (VAT) at 20%.
Existing/resale properties: Most older residential properties are exempt from VAT. Instead, they incur transfer taxes (droits de mutation), typically around 5–6% of the sale price.
Commercial properties: Sales may be subject to VAT, especially when sold by VAT-registered businesses, though there may be options depending on the transaction.
Special cases: Renovated or substantially reconstructed buildings sold as new, and certain incentivized housing projects, may attract VAT at reduced rates.
The applicable tax depends primarily on the property’s age, type, and seller.
In France, VAT generally applies to:
- Hotels and equivalents
- Furnished accommodation operating as a “para-hotelier”
- Specific tourism rentals
- Accommodation provided under a commercial lease