The Leaseback Scheme

This fiscal system enables investors to benefit from secured extra income. It can also help them keep their standard of living once retired.

This scheme helps to develop the network of infrastructures specialised for the students, the elder dependant people, and Business Tourism.

By buying an apartment located in a Tourist Residence, a Serviced Residence, or an EHPAD (Residence specialised in welcoming elder dependant people). The unit needs to be rented out fully furnished, through a commercial lease, to the Management Company managing the whole residence.

• Receiving a rental income through the whole duration of the commercial lease
• Refunding of VAT (19,6%) on your purchase

The Buy to Let Scheme

The Buy to Let “Scellier”

For many years owners of new or off-plan apartments have benefited from fiscal advantages. The “Scellier” scheme, in force since January 2010, has replaced the former “Robien” system from 2003, which itself came just after the “Besson” scheme.
The system in force helps to invest in real estate for renting while benefiting from large fiscal advantages.

The aim is to encourage as much people as possible to invest in real estate for rental purpose in order to:

• Help relax the renting market in areas where accommodation is rare and expensive
• Develop the construction of accommodation in city centres and in close suburbs
• Improve the quality of rental accommodation in France as a whole

By buying a new apartment which will be rented out as main home for the tenant for 9 years at least.

• A high detaxation of your rental income by amortising 50% of the amount of your investment on a 9 years basis (6% per year for 7 years, then 4% for 2 years)
• Deduction of all your charges: land tax (taxe foncière), management fees, interests paid on mortgage, etc.

The Buy to Let “Borloo”

The new “Borloo” system is concentrating on the rental market in “intermediate sectors”. Its functioning is very close to the “Robien” system, but offers even higher fiscal advantages.

The Buy to Let “Borloo” completes the “Robien rencentrée” system by helping develop the “intermediate sector” rental market.

• By buying a new apartment, and renting it out as main home for the tenant, during 9 years at least.
• By respecting the limits of the “intermediate sectors” for rental depending on the location of the apartment and the tenant’s income.

• Deduction of all charges: land tax (taxe foncière), management fees, interests paid on mortgage, etc.
• A lump deduction on the gross rental income of 30%

The amortisation of 65% of your total investment on a 15 years basis (6% per year for 7 years, then 4% for 2 years, and 2,5% for 6 years) which helps you not to be taxed on your rental income.

Second Home

This is about buying real estate for second home use. The owner will be the only one to use his appartment, or he will rent it out unfurnished on the long term, or furnish it and rent it out on the short term to tourists through a local management company.

There is no specific fiscal advantages linked to this type of investment. The aim is before all to please yourself, and to diversify your portfolio.