Income Tax
You will not pay French income tax thanks to double taxation agreements between France and other European Union countries - you will not have to pay income tax in your own country of residence either.

Reclaiming VAT
A leaseback investment entitles you to reclaim VAT on your investment, i.e. 19.6% of the tax-inclusive purchase price. In most cases MdB will advance the VAT cost - depending on the development programme chosen.

Tax-deductible outgoings
Leaseback entitles you to declare various tax-deductible expenses.  The total income received from lettings enables you to obtain a tax reduction in proportion to your income bracket.

Inheritance and "ISF"
Leaseback also carries attractive advantages within the framework of French legislation on inheritance and the ‘impôt solidarité sur la fortune’ (ISF) which determines income tax on high incomes.

Other Taxes
The only additional charge you will have to pay is the “Taxe Foncière” (land tax) which is payable at the end of each year (in arrears), typically, for a 100,000 Euro property, expect to pay around 300 Euro per annum. You are exempt for the first two years if it is a new build.

Capital Gains Tax
As a non-professional lessor ‘LMNP’ you will not be liable to pay Capital Gains Tax if you sell your property after 15 years (5 years for a professional lessor ‘LMP’).