French Buy-To-Let Mortgages

French Buy to Let Mortgages

At Worldwide Property Company, our passion lies in helping investors unlock the potential of global real estate markets. We believe France presents one of the most compelling opportunities for property investment, thanks to its Para-Hotelier scheme.

Unlike the UK, France does not offer specific buy-to-let mortgages where the amount you can borrow is primarily based on anticipated rental income. Instead, you can apply for a standard mortgage or opt-in to the Para-Hotelier scheme for newly built properties set up for short-term holiday lets. It’s important to note however, that you are responsible for making mortgage repayments even if the property is not occupied and generating rental income.

The Para-Hotelier Scheme

For decades, France has captivated tourists with its charm and diverse landscapes. Recognising the evolving vacation rental landscape from companies like ‘Airbnb’, the government launched Para-Hotelier to encourage investment in luxury holiday homes. This scheme offers significant incentives to owners who rent their properties under specific conditions.

Key Benefits of Para-Hotelier:

• Tax-Free Rental Income: With short-term lets (under 30 days), rental income remains untaxed for up to 30 years.
• 20% VAT Rebate: Recover 20% of the property’s VAT upon purchase, boosting your immediate ROI.
• Attractive Tax Breaks: Long-term rental income benefits from reduced taxation, and capital gains tax decreases over time, eventually tapering down to zero.

Financing Your French Dream

While France doesn’t have dedicated buy-to-let mortgages, interest rates are locked for the entire term (typically 20-25 years), providing long-term financial stability. Mortgage approval hinges on your personal income, but all mortgage interest and property expenses are deductible against rental income.

Ready to Explore French Property Investment?

Get in touch with our experts today. We’ll guide you through the Para-Hotelier scheme, navigate the mortgage process, and help you find your perfect French investment property.

Enquire now and schedule a free consultation with one of our French mortgage brokers.

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