HOW to Save 20% on the Purchase Price?
Reclaim 20% of the purchase price of your apartment, furniture, and additional features by applying for a VAT refund from the French tax authorities. To qualify for the refund, the full purchase price of the property must be paid in advance.
A French chartered accountant can guide you through the process of completing the refund application and provide expert advice.
WHY Does the French Tax Authority Refund VAT?
VAT refunds are granted on the condition that the property is rented out. Alpine Resorts manages this process for you!
To qualify, the following three conditions must be met:
1 – Property must be fully furnished
2 – The rental must be short-term: for instance, a single tenant cannot stay for more than 30 consecutive days.
3 – At least three of the following para-hotel services must be offered to guests:
- Personalised reception and check-in services
- Provision of bed linens
- Regular cleaning services
- Breakfast (can be delivered)
Alpine Resorts and the Management Mandate
Alpine Resorts oversees the rental of your property, ensuring para-hotel services are provided to guests, offering additional rental services, and maintaining your property on your behalf.
When you sign a management mandate, it outlines:
- Your options for personal use of the property.
- Details regarding management fees, maintenance, and rental income you will receive.
Our flexible management structure allows you to use your property whenever you wish. Simply inform us of your planned occupancy to ensure proper scheduling of the busy winter season.
THE 20-YEAR RENTAL Commitment
VAT refunds are granted in exchange for a 20-year rental commitment.
If you discontinue the rental agreement before the 20 years are up, you will owe the tax authorities the unamortized portion of the VAT, calculated as X/20ths.
SELLING YOUR PROPERTY
As the sole owner, you can sell your property at any time. If you have reclaimed VAT and signed a management mandate, there are two options:
- The buyer continues the rental commitment.
The management mandate is transferred to the new owner. The rental commitment is maintained, and no VAT repayment is required. - The buyer does not continue the rental commitment
If the sale occurs after 8 years of rental, you will owe 12/20ths of the reclaimed VAT.
However, between VAT savings and property appreciation, buying and reselling remains a lucrative option.
Alpine Lodges: Your Expert in French Alpine Real Estate
We offer a seamless, all-inclusive service:
- Purchase a high-end, fully furnished, and equipped apartment, ready for immediate rental.
- Benefit from Alpine Resorts’ expertise in recovering VAT, personalized stay management, and remote property oversight.
SAVE 20% ON YOUR PROPERTY PURCHASE WITH OUR STRUCTURED SOLUTION.
