If you’re considering buying a new-build ski property in a French touristic area, you may be eligible for a VAT rebate that allows you to save 20% on the purchase price. This guide will walk you through the eligibility requirements, payment and rebate options, rental requirements, and resale considerations for new-build ski properties in France.

Eligibility for VAT Rebates

To be eligible for VAT rebates on a new-build ski property in France, you must rent the property furnished on a short term, holiday-let basis. You must offer at least three para-hotel services to tenants, such as reception (handover of keys), bed and linen changing, cleaning, and breakfast (which can be a breakfast delivery). This rental activity is considered a commercial activity, allowing you to claim the VAT.

To take advantage of VAT rebates, you can sign a flexible commercial lease agreement with a rental agency that manages, maintains, and rents the property on your behalf. You’ll be free to use your property whenever you want, as long as you notify the agency before the beginning of the ski season.

Payment and Rebate Options 

If you’re buying a new-build ski property already completed, you must pay the full property price, including VAT, and then get the VAT back, 3 to 6 months after the signature. If you buy off-plan, the VAT can sometimes be taken off the property price at the start of the purchase. Alternatively, as off-plan properties are normally paid for in stage payments, you pay each stage payment, including VAT, and then get refunded the VAT accordingly on each stage payment.

If you sell your property before the end of the 20-year period, there are a few important things to remember. If the new purchaser carries on the rental activity, there won’t be any VAT to repay as the VAT rebate will continue with the new purchaser. If you sell the property after year 10 and the new purchaser doesn’t want to continue with the rental activity, you may have to repay 50% of the VAT that you received initially.

However, buyers needn’t worry for several reasons:

You will have already saved 10% on the VAT at the start.
Any repayable VAT is applicable on the original purchase price, not the resale price.
After 10 years of ownership, any capital appreciation should be more than enough to cover the repayable amount of VAT.

Rental Requirements
To be eligible for VAT rebates, you must rent your property furnished on a short term, holiday-let basis, and offer at least three para-hotel services to tenants. Many high street rental management agencies offer these lease options to owners, especially in the French Alps.

To take advantage of VAT rebates, you can sign a flexible commercial lease agreement with a rental agency that manages, maintains, and rents the property on your behalf. The rental agency will take care of everything and offer rental services to tenants.

Selling Your Property
If you sell your new-build ski property before the end of the 20-year rental period, you may have to repay some of the VAT rebate you received initially. However, if the new purchaser carries on with the rental activity, there won’t be any VAT to repay.

If you sell the property after year 10 and the new purchaser doesn’t want to continue with the rental activity, you may have to repay 50% of the VAT rebate you received initially. However, any repayable VAT is applicable on the original purchase price, not the resale price. After 10 years of ownership, any capital appreciation should be more than enough to cover the repayable amount of VAT.

Conclusion
VAT rebates on new-build ski properties in France can provide significant savings on the purchase price. To be eligible for these rebates, you must rent your property furnished on a short term, holiday-let basis and offer at least three para-hotel services to tenants. Many high street rental management agencies offer these lease options to owners, and signing a flexible commercial lease agreement can help you take advantage of VAT rebates while managing and renting your property effectively.

VAT rebate on new-build French ski properties in 6 points:

• To be eligible for VAT rebates on a new-build ski property in France, you must rent the property furnished on a short term, holiday-let basis and offer at least three para-hotel services to tenants.
• Signing a flexible commercial lease agreement with a rental agency can help you take advantage of VAT rebates while managing and renting your property effectively.
• If you’re buying a new-build property that’s already completed, you must pay the full property price, including VAT, and then get the VAT back 3 to 6 months after the signature. If you buy off-plan, the VAT can sometimes be taken off the property price at the start of the purchase.
• The VAT rebate is provided on the condition that the property is rented for at least 20 years. If you stop your rental activity after 10 years, you may have to pay back 10/20th of the VAT rebate you were awarded.
• If you sell your property before the end of the 20-year period, you may have to repay some of the VAT rebate you received initially. However, if the new purchaser carries on with the rental activity, there won’t be any VAT to repay.
• After 10 years of ownership, any capital appreciation should be more than enough to cover the repayable amount of VAT.

FAQs about VAT rebate on French ski properties

Who is eligible for VAT rebates on new-build ski properties in France?
To be eligible for VAT rebates, you must rent your property furnished on a short term, holiday-let basis and offer at least three para-hotel services to tenants. This rental activity is considered a commercial activity, allowing you to claim the VAT.

How much can I save with VAT rebates?
VAT rebates allow you to save 20% on the purchase price of your new-build ski property in France. So, for a 1M€ ski property you would save 200,000€ in VAT.

Do I have to rent my property for 20 years to be eligible for VAT rebates?
Yes, the VAT rebate is provided on the condition that the property is rented for at least 20 years. If you stop your rental activity after 10 years, you may have to pay back 10/20th of the VAT rebate you were awarded.

What happens if I sell my property before the end of the 20-year period?
If you sell your property before the end of the 20-year rental period, you may have to repay some of the VAT rebate you received initially. However, if the new purchaser carries on with the rental activity, there won’t be any VAT to repay.

Can I use my new-build ski property whenever I want if I rent it out?
Yes, you’ll be free to use your property whenever you want, as long as you notify the rental agency before the beginning of the ski season.