How can I become a non-professional landlord and reclaim the VAT on the purchase of my property?

Investing in real estate and getting VAT back is possible, under certain conditions. Bo immobilier guides you.

If you wish to recover the VAT on the purchase of your property, you will be obliged to offer your property for rent all year round but also to provide (directly or via a mandate), in addition to the accommodation, at least 3 of the services mentioned in B of the 4th paragraph of article 261 D of the CGI (see below).

Article 261 D du CGI extrait

VAT may be reclaimed if:

The provision of furnished or equipped premises for consideration and on a regular basis, including in addition to accommodation at least three of the following services, provided under conditions similar to those offered by professionally run hotel accommodation establishments:

– breakfast
– regular cleaning of the premises
– supply of household linen
– reception, even if not personalised, of customers.

You will then be considered as a non-professional lessor of furnished accommodation (LMNP).

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Good to know

Unlike a “classic” property investment, you cannot expect to live in the property you buy.

LMNP properties are investment products and should be seen as such. 

When you wish to occupy your property, you will have to pay the service fee.

On the other hand, you can occupy your property free of charge if you only partially recover the VAT.

Explanation: you wish to occupy your property during the summer period, i.e. 3 months of the year.  You can then recover 9/12ths of the 20% VAT, given that your property will only be available for rent for 9 months out of 12.

You must keep your property for 20 years, otherwise you will have to repay the VAT pro rata to the years you have held it.

Non-professional lessors of furnished accommodation are subject to the CFE (cotisation foncière des entreprises).

What we offer you as contracts to be considered as LMNP

The first is a rental mandate, signed with our agency Bo. Immobilier, which allows us to market your property, find the tenants and manage the reservations.

The second is a service contract, with our company SARL prestige location. We offer you a fixed price for 1 week of rental, which includes :

-the reception of the clients (with the inventory of fixtures of entry and exit)

-beds made on arrival

-daily or occasional cleaning service according to the request

The price of these services will depend on the size of the property and the capacity of the accommodation.