For those who are unfamiliar with French leasebacks, here is a short description of what they are and the benefits. A French leaseback allows investors to buy a freehold French property that allows investors to cover a majority of the mortgage repayments with the tax-free rental income they receive. Although the initial purchase price includes the 19.6% VAT, the VAT is eventually fully refunded to buyers. A management company will then rent out the property for 9 to 11 years, taking care of maintenance and insurance costs. However, owners receive an annual return through the rental income, generally around 3% to 5% a year, and also have the benefit of spending a couple weeks a year in their own residence or other associated French properties.

The leaseback scheme was implemented by the French government in the 1980s to spur more consumption within the tourism and construction industries. The government realized that there were more and more tourists visiting France and that the country needed an incentive for outside buyers to invest in French property, so the current French leaseback system was created.

A French mortgage can easily be obtained through a mortgage broker, even if the buyer does not live in France. Obtaining a French mortgage for leasebacks is an extremely attractive option because interest rates are low and the taxable rental revenue can be reduced by the amount of interest paid on the French mortgage. For further instructions on how to successfully obtain French mortgages for buying real estate in France, please contact France Home Finance.

In France, compulsory health insurance is required for all buyers wishing to purchase French property. This includes international buyers and expatriates looking to buy French apartments, second homes, leasebacks, and other types of French properties. This may come as surprising news to international buyers, who come from countries where health insurance is not mandatory for purchasing a property.