How to Reclaim VAT on a New Property Investment ?

Investing in a new property in the French Alps? Learn how to reclaim 20% VAT on your purchase through the LMNP status and para-hotel services. Expert advice from BARNES Portes du Soleil.

Who is eligible?

To benefit from VAT recovery when purchasing a new property in Les Gets, certain conditions must be met.

1. New-build Real Estate

First, the property you acquire must be a new property or under construction.

New properties include all properties completed less than 5 years ago, excluding homes that have already been the subject of a transaction between private individuals.

2. The status of the lessor

The difference between the LMP (professional furnished rental) and LMNP (non-professional furnished rental) regimes is primarily fiscal. Under LMNP, any deficits can only be deducted from income of the same type, whereas they can reduce overall income in the case of LMP.

Your status is a major factor in the VAT recovery process when purchasing a property. Two options are available to you:

Non-professional furnished rental (LMNP)
Professional furnished rental (LMP)

3. Hold the property for at least 20 years

It is necessary to keep the property for 20 years. However, the possibility of reselling the property remains open, provided that the real estate VAT is repaid on a pro-rata basis for the years of non-ownership.

Do you wish to sell or request a valuation of your property? Do not hesitate to contact us.

4. Provide para-hotel services

For your rental investment, you must provide at least 3 of the following 4 services to benefit from VAT recovery:

Reception
Linen service
Cleaning
Breakfast

Rent out your property with VAT recovery

Investing in a property in Les Gets and throughout the Portes du Soleil area with your BARNES agency in Les Gets means receiving personalized support and advice throughout your purchase.

Furthermore, our seasonal rental service can also assist you in optimizing rental yields.

Your real estate agency in Les Gets offers a range of high-end services to optimize the tenant experience within your property.

If you are an owner and wish to rent out your property, discover our seasonal rental management service.