Quote:
Originally Posted by chappers
One of the possible ways which i have been researching, is the French Leaseback Scheme.
Initially i thought, yes, this is a good, hassle free way to make an investment for the future. But then reading further i noticed that there may be problems if you wanted to sell the property after the 9-11 years that the scheme was taken out for. (ie. you might not be able to sell at all, vat refund would have to be paid back?).
After looking further into this, i have read on one particular website offering leasebacks, that the French law has recently been changed in that the VAT does not have to be repaid if you sell before you have had the property for 20 years. Is this correct ?
|
No it isn't! Originally you had to pay back the VAT to the government. Under the new law you no longer have to do that BUT you now have to reduce the sale price of the property to account for the amount of VAT that you owe. So you still have to repay the VAT...just in a different way!
It's probably too late now judging by the date on your post but my advice to you is stay away from leasebacks. I've had one near Paris for 5 years and it has been nothing but trouble. I rue the day I ever heard of leaseback. From what I've been reading on this and other forums, the problems I've had so far will pale into insignificance compared with the problems to come when I want to sell at the end of the first 9 year period. For me, leaseback has been a total waste of time and money.