Why Spain’s 100% Property Tax Will Drive Non-EU Buyers to the French Riviera

Recent announcements from Spain’s government have sent ripples through the international property market. Spain’s proposed 100% property tax on non-EU buyers, including the UK, could drastically alter the landscape for investors. While this potential policy casts uncertainty over Spain, the French Riviera stands as a beacon of stability and opportunity, offering a similar Mediterranean climate and an equally attractive setting for luxury property investments in Europe.

Here’s why the French Riviera is the ideal destination for holiday home investors:

Unmatched Quality of Life

The French Riviera offers an exceptional quality of life, blending natural beauty, cultural vibrancy, and a laid-back Mediterranean lifestyle. Known for attracting A-listers and celebrities, the region’s world-class events and luxury atmosphere add to its exclusive appeal. Highlights include:

Year-Round Sunshine: Over 300 days of sunshine annually provide mild winters and warm summers. This makes it easy to enjoy the Riviera’s beaches, olive groves, lavender fields, and picturesque villages, creating an idyllic setting.

World-Class Destinations: The Riviera’s rich history and culture are evident in its renowned events like the Cannes Film Festival, historic landmarks in Antibes, and the iconic beaches of Saint-Tropez, as well as Nice’s Promenade des Anglais. These destinations highlight the region’s unique mix of glamour and tradition, offering diverse opportunities for exploration and relaxation.

Fine Dining: From Michelin-starred restaurants to charming seaside bistros, the region offers an extraordinary gastronomic experience. Pair this with locally produced wines and fresh seafood, and you have a culinary paradise.

Proximity to Skiing: Just an hour from Nice, you can visit the Turini Camp d’Argent ski resort in the Alpes-Maritimes during the winter, offering a unique combination of coastal relaxation and alpine adventure.

Balanced and Investor-Friendly Policies

Unlike Spain’s sudden and extreme measures, France has taken a more measured approach to address housing and tourism concerns. While some regulations on short-term rentals have been introduced, they are focused on urban areas like Paris and major port cities, leaving regions like the French Riviera largely unaffected. This stability ensures that your investment is protected and free from abrupt policy shifts.

Tax Incentives for New Builds in France

For those considering property investments, the French government’s Para-Hotelier scheme provides compelling financial benefits for new-build properties in France:

• VAT Rebate: Reclaim up to 20% VAT on the purchase price of a new-build property, provided it is set up for short-term holiday rentals for at least 20 years.
• Tax-Free Rental Income: Offset 80% of the property’s purchase price as depreciation over 30 years, allowing you to generate tax-free rental income.
• No Stamp Duty: Unlike other property purchases, new builds are exempt from stamp duty, reducing your initial outlay.
• No Property Taxes for the First 2 Years: Enjoy a tax-free period to further reduce your costs and enhance your investment returns.

These incentives make new-build properties particularly attractive for those seeking both lifestyle benefits and strong returns on investment.

Strategic Location and Accessibility

Owning property in the French Riviera places you at the heart of Europe:

• Day Trips to Italy: The Italian border is a short drive away, allowing for leisurely lunches in Ligurian towns or shopping excursions in Italian markets.
• Access to Monaco: A hub of luxury and finance, Monaco offers the perfect complement to Riviera living for business and leisure.
• Convenience for Travelers: Nice International Airport provides excellent connectivity to major global destinations, making it easy for homeowners and guests to travel.

An Opportunity to Act

While Spain’s housing policies add uncertainty for non-EU buyers, the French Riviera remains a haven of stability and luxury. France’s proactive yet balanced approach ensures that the region continues to attract investors while addressing local needs. Whether you seek a primary residence, a holiday home, or an investment property, the Riviera’s charm and financial advantages are unmatched.

Contact us today to explore property opportunities in this stunning region. Learn more about the tax benefits, available properties, and how we can assist you from start to finish and beyond.