Advice on buying a property in France Post Reply

[twice_as_nice]

My husband has always been keen to buy a ski chalet. It's possible that we might be in a position to do so sometime in the next few years. However, we have no idea about how to go about this / what sort of additional hidden costs there might be in doing so. So, we thought it's worth trying to work out now if it's worth scrimping and saving over the next few years in order to try to do this.

We are thinking of buying in France and wondered if anyone had any advice - in particular, my questions are....

- is it correct that you don't pay stamp duty but you pay 20% VAT on a property price? Are there any other taxes on buying a property?
- what happens with income, would it be taxed by France or just taken into account as income by the UK government and taxed in that way? Or do you set up a company and pay corp tax instead of income tax?
- lots of properties come with the leaseback agreement (where you agree to lease your property back for a certain number of weeks per year, restricting when you can stay in your property and what sort of furniture etc you can have). does anyone have any experience of this?
- is a property more attractive to rent (for the week etc) if it's got 3 beds or 4 beds?
- how much do you tend to have to pay for management of the property? And do you manage bookings yourself or have a company to do this?

[CHTM8888]

Lot of questions here. I bought a farmhouse in SW France ten years ago so may be able to help.

1. You do not pay VAT on house purchases but you can count on paying 6% estate agents fees. Buyer normally pays.
2. You don't even pay 20% on building work as we do here in the UK. You pay 7.5% VAT instead.
3. Income tax on let things must be paid in France and can be offset against any further tax due in the UK.
4. Setting up a company to buy your property can be a good idea for many reasons. Not least dealing with French inheritance laws. You should take advice on this point. We do have a company which is called an SCI.
5. Leaseback can be good but does come with restrictions. I wouldn't do it personally.
6. I would recommend three bedrooms. Always easier to let.
7. Bookings are easy to manage through the myriad web sites which are out there. If you can find a reliable person to do your changeovers then that's probably the way to go. There is no standard charge for managing properties. It all depends on how much you want a management company to do.

The Telegraph has a good guide to buying a house in France. Suggest you get it. And if you want to chat to me then just send a reply and we'll arrange it.

[jonathan @ hamptons]

Hi there,

This is exactly the sort of thing our international department can help you with. Hamptons now have the biggest listings of overseas properties outside of their original countries, predominantly in France, Spain, Italy & the US. If you want to send me your details (email address and contact number) to dysonj@hamptons-int.com I'll send you over the details for the correct person to contact.

Good luck...!!!

Jonathan

[Flump2013]

Hi there,

My brother-in-law is an independent consultant who specializes in helping people buy property in the Alps in the most tax efficient, cost effective way. He can do everything from shortlisting properties, assisting with the purchase, project managing any renovations and making introductions to tour operators, or agents who could help to rent out the property.

His name is Simon Tinley and his website is http://www.simontinley.co.uk/ and his email is simon@simontinley.co.uk

I hope that this helps.

[twice_as_nice]

thanks all for taking the time to reply, really useful.

Thanks CHTM8888 for your response on my questions....

Will discuss with hubbie and be in touch. Thanks again!