A Place In The Sun - December 2007 - French Leasebacks
Posted on Friday, 21 December 2007 09:42AM
Question: I have read your article on Leaseback on page 43 of the October issue. I am considering buying a
house in France soon and have heard of a French government sponsored scheme called Para-Hotelerie. What
are the main provisions of this scheme and how does it differ from Leaseback. Where could I get a copy of
the full provisions of this scheme. Perhaps your readers may be interested in this subject as I have never
seen it described in magazine articles. THANKS
Answer: Leaseback is not a French government sponsored scheme. The management company which is
applying for the authorisation to run a Leaseback is not approved by the French government as a sound
company. In order to get the label of leaseback and the authorisation to run a tourist activity in the building,
the company has to prove to the Prefecture that a minimum of apartments in the building are leased out to
them and that a certain amount of commercial services are provided to tourists. A leaseback can be either a
Residence de Tourisme or a Regime para-hotelier. Therefore a para hotellerie is a form of leaseback. The
difference between the two different types of leaseback is the services provided to tourist renting out the
properties (for example, the provision of breakfast facilities, room booking service, presence or not of a
restaurant etc…)
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