coin-gaucheFrench Leaseback history coin-droit

Leaseback resale FranceIn the late 1970s, following the increasingly large number of tourists visiting France which continues today as the most visited country in the world, the French government recognised the need to encourage investment in the construction of tourist residences, and offered an incentive to investors by offering tax reduction on the purchase of properties built for leaseback purposes. Investors buy the freehold of a property outright but lease it back to a management company who specialise in the tourist management, maintenance and rental of these properties for a minimum 9-year period.  In return owners receive, annually, a guaranteed rental return, irrespective of occupancy of the property, net of all communal charges, maintenance and running costs.

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