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THE INVESTMENT

The Chateau de la Redorte

The French Leaseback Scheme

The French leaseback scheme was introduced by the French government in 1986 in order to increase international investment into the country while helping to provide self catering accommodation for the tourism industry. France is a number 1 vacation destination in the world: Around 80M tourists each year.

The 2 main criteria for the French Leaseback are:

  • Not to personally use your property more than 182 days a year.
  • To have a management agreement with a management company.

In return, you receive a refund of the VAT (19.6%) plus a guaranteed rental income.

The concept of leaseback is that you purchase a fully furnished freehold property from a development company and then lease it back to a management company over a specific period (contracts tend to be 9 years, renewable). In exchange for the time you agree to rent your property to the development company, in this case Garrigae Hotels & Resorts, you will receive a guaranteed return. You will equally be able to benefit from personal usage for the remaining weeks you have not leased to Garrigae Hotels & Resorts.

The French Leaseback scheme is NOT a “timeshare” system. Thus, when you buy a French leaseback you purchase an entire property that has real value and potentially provides you with capital appreciation.

VAT Refund: 19.6% VAT is refunded on all new properties that fulfil the criteria previously mentioned. e.g. if the price for a new property is €119,600, you will only pay €100,000, so a discount of €19,600.

The French leaseback offers hassle free rental for the property owner. The management company is responsible for the full upkeep of the property, its furniture and the communal areas such as the gardens, pool, Spa, etc. The management company is also responsible for renting out your property during your absence. On the leaseback schemes where the rentals are guaranteed, the management company will pay you the returns whether or not your property was rented.

Please contact a member of our Customer Service Team for full terms and conditions of the Leaseback Schemes available at this resort.

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