The Leaseback Scheme

> What is leaseback?

In France, an increasingly popular way to invest in property in France is to buy a French leaseback property which benefits from a government-backed VAT refund incentive, designed to encourage investment in tourist residences.  
Through freehold ownership of an apartment or cottage that is leased back to a management company for a minimum period of 9 years, investors benefit from guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges.

> How was the leaseback investment introduced in France?

In the late 1960s, following the increasingly large number of tourists visiting France which continues today as the most visited country in the world, the French government recognised the need to encourage investment in the construction of tourist residences, and offered an incentive to investors by refunding the VAT on the purchase price of properties built for leaseback purposes.

Pierre & Vacances were the pioneers of the leaseback concept with the creation of the first car-free ski resort in Avoriaz in 1967.

> How does the French leaseback scheme work?

Investors buy the freehold of a property outright but lease it back to a management company who specialise in the tourist management, maintenance and rental of these properties for a minimum 9-year period.  In return owners receive, annually, a guaranteed rental return, irrespective of occupancy of the property, net of all communal charges, maintenance and running costs.

Pierre & Vacances - Center Parcs are uniquely and very importantly the developers and the managers of the properties they sell, with 7.25 million clients staying in their 200+ residences in 6 European countries each year so have a very clear vested interest in the quality construction, location and ongoing maintenance of the properties.

The P&V leaseback investment is also extended to our developments in Spain, including the amazing Terrazas Costa del Sol.

Why invest with P&V?