French Leasebacks - Beware the Risks

French Leasebacks - Beware the Risks
16th June 2004

Many leaseback developments are being established in a bid to regenerate struggling communities in France.Investors have noted that the French government will repay the VAT on new developments - currently 19.6%. This is repaid a few months after the property is purchased - but buyers have to keep the property for 21 years, or a proportion of it must be repaid. There is a 5% reduction per year after the first year.

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