Who wouldn’t? Whilst you may have heard about the 20% VAT back schemes that are available for ski property in France, you may need a bit of clarification around what that actually means. We’ve put together a round up of the facts and how you can get a little closer to that alpine dream and, as ever, our property alert service means you’ll never miss out on the ideal ski retreat.
What does 20% VAT back actually mean?
Put simply, it’s a VAT refund on your brand new ski property in France. There are conditions of course, but these are also straightforward.
- The property must be part of a new development
- The property must be furnished
- Rentals must be short term
- At least three hotel-type facilities must be provided, such as reception, breakfast or cleaning
- Rentals must be managed by a commercial, approved rental company
- Reclaiming VAT usually takes place in January, for payments made the previous year
As well as 20% VAT back, you can also indulge in sumptuous hotel style facilities.
Why is this offered?
The scheme is designed to encourage rental and maintain high occupancy, avoiding the dreaded empty bed syndrome that can give a distinctly ghostly feel to any resort. It works wonderfully for the towns and villages, which enjoy a steady stream of visitors, and has huge benefits for investors; as the resort prospers, infrastructure improves and so property values and rental yield increase.
It’s not just about the investment though - from a personal perspective, you know you have a property in a ski resort that will have a lively feel for much of the year, and offer an enjoyable base for you, your family and friends. Add in the fact that your ski property is likely to be part of a development like this apartment in Le Chinaillon-Le Grand Bornand, that offers superb hotel-style facilities and the appeal becomes even more tangible.
Superbly appointed, new build ski apartments allow offer everything you need for a great break - and an outstanding investment.
How does the 20% VAT rebate work?
You sign a commercial lease to rent your property out for a designated period of time - say 8-9 weeks in winter and 3 weeks in summer. The management company will provide the necessary facilities such as reception services, as well as any additional services for your tenants. They also maintain the property.
As part of the lease you agree how much you will use the property, and details such as management and maintenance costs, along with rental fees. It’s important to be sure you have an agreement that gives you as much usage as you’d like from your property - many management companies operate on the principle that you can use the property as much as you want, so long as enough notice is given and you meet the minimum rental capacity.
What happens if I change my mind?
The minimum term is 20 years, so you need to be fairly sure this is the right choice - having said that, most agreements have a clause whereby you can come out of the agreement after 10 years - you just pay back half of the rebate.
Match 20% discount with already exceptional value and owning something like this ski property in Megeve becomes surprisingly affordable.
What if I want to sell my ski property?
There are two ways things work if you want to sell.
- The purchaser can continue the plan - there’s no change
- The purchaser will not continue the plan - you may have to repay some of the rebate. The initial saving and increase in property value will likely offset this significantly
What are the main benefits of the 20% VAT back scheme?
Apart from the obvious benefit of saving 20% on a fantastic new ski property, you’ll enjoy a host of other benefits from the scheme. Many new builds like this gorgeous development in Megeve have excellent facilities such as concierge, pools, spa, restaurants and bars, plus you’ll have access to facilities like storage, which means travelling is simple. Maintenance and cleaning are covered too, so you’ve a trouble free investment and a turn key holiday experience.
The scheme means resorts are likely to see a high level of visitors, and so see a high level of investment in infrastructure - this means a strong rental yield and further increase in value.
What are the drawbacks?
The main drawback of the scheme is that you need to plan when you’ll want to use your property to allow the rental company to manage occupancy and if you’re looking for a second home rather than a holiday apartment, this may not be the scheme for you. If you’re looking for a way to enjoy the alps from a gorgeous apartment with top level facilities and all the management details taken care of - well look no further.
Where can I find out more?
First step is to have a look at our New Developments page where you’ll find some of our favourite brand new ski developments, including many across France, so you can benefit from the 20% VAT rebate. You might also like to look at information offered by developers like MGM or Terresens to enhance your understanding of what rental management companies can offer.
A bit of investigation will go a long way towards being sure you’ve a ski property that you can use as you wish, as well as one that offers outstanding rental potential, and the undeniable appeal of claiming 20% VAT back on your investment.
Discover your perfect ski property - with 20% off
SnowOnly is a ski property portal with access to a huge range of beautiful ski properties across the world. Our detailed ski property search facility means you can specify exactly what kind of property you’re looking for, including new developments in France, many of which offer the 20% VAT back scheme. Our website also has useful resort guides, and articles about every aspect of choosing your perfect alpine retreat