What is French Leaseback Property?
Loue Meuble Non-Professionel (LMNP) or the French Leaseback Property System was introduced by the French government in early 1980s to increase the quantity of holiday accommodation available in the country. This was a measure to offset the growth of required holiday accommodation sites in the country, as a result of burgeoning tourism industry in the country. Under the LMNP, the investors who purchased the property had to lease it back to a pre-determined Property Management Company for a fixed period of time (generally, between 9 to 11 years, extendable up to 18 years). During this period, the task of the Management Company is to furnish, equip and let the property for a guaranteed net return. The return on property tends to range between 2.5% and 6% per year depending on the factors, like the Property Management Company, nature of property, its location, and whether or not you will be enjoying the property for holidays. The French Leaseback Property Scheme is a runaway hit with most
