The boring but crucial process of getting a second home in the mountains goes like this: In place of the primary home’s 5.5% VAT rate, the buyer must pay a VAT rate of 20% if the house is new and was delivered less than 5 years ago. However, the buyer can profit from VAT recovery if they plan to rent the home out for at least 20 years. This implies that the owner must reimburse the tax authorities for portion of the VAT, prorated to the years of non-holding, if the property is sold before the 20-year period has expired. Short version: If a buyer of a second house keeps and rents out the property for at least 20 years, VAT recovery entitles them to a reimbursement of the VAT they paid.

Owners must regularly show that the property is being rented out, either directly or through a rental management business, in order to be eligible to reclaim the 20% VAT paid on the acquisition of a second house in the mountains. This often entails utilising parahotels or hotel services in the Alps. For the management of their hotel, many owners opt to hire reputable industry experts. Owners may verify that their second house is being rented out appropriately by hiring rental management services, and they can take advantage of the services while they are living there.

Your rental property needs to meet specific requirements in order to be eligible for the Parahotel programme. It must first be situated in a popular tourist region and outfitted when rented. Second, you must rent it out for at least nine of the minimum 20 weeks per year that it is offered for rent. Third, a reputable rental agency or internet rental marketplace must publicise the property.

If your home meets these criteria, you can apply for the plan and submit a claim for the VAT you paid on its acquisition and renovation. This might result in significant cost savings given that France now has a 20% VAT rate. In order to increase their margins and rental income, property owners in the mountain rental market should think about reclaiming VAT.

Owners of older properties, such as a genuine Savoyard chalet, can still take advantage of tax breaks, such as VAT reimbursement for the costs connected with operating furnished rentals. Although traditional seasonal rentals are exempt from VAT, owners can choose the parahotel tax advantages programme in instead of the furnished rental programme, which enables them to claim VAT.

The Alps have a number of ski resorts where rental investments can be made. The most well-known Alps resorts, like Courchevel, Val Thorens, and Méribel, are building brand-new housing estates with the most luxurious amenities and unrestricted views of the surrounding peaks.

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