French Buy to Let Mortgages

One of the main reasons that we started Worldwide Property Company was because we wanted to help property investors discover all the incredible property investment opportunities in other countries. And France has one of the best investment opportunities in the world.

Para-Hotelier was created by the French government only a few years ago. For nearly 80 years France has been one of the most popular holiday destinations in the world, and tourism is an important part of the French economy. When companies like AIRBnB started to change the way we thought about booking holidays, instead of booking hotels we started to book self catering villas, chalets and apartments, the French government wanted to offer an incentive to property owners, so that France would have enough residential properties available.

See here for more details… Para-Hotelier Tax Incentives

France does not have a buy to let mortgage product. All mortgages are calculated the same, regardless of whether the property will be your main residence or a French investment property.

The banks will also not take into account any future rental income, so the mortgage will be granted based on your current personal income.

Putting aside the attractive tax incentives, one of the key advantages of French investment properties is that the mortgage interest rates are fixed for the entire term. So if you have an interest rate of say 2%, then that will be fixed for 20 to 25 years.

Also all the mortgage interest and other expenses are allowable costs against income, for both short term and long term rentals. And French Capital Gains Tax decreases over time, so the longer you hold the property, the less CGT you will have to pay. (French CGT will eventually taper down to zero).

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