Why do the French government reimburse the VAT?
The leaseback scheme has existed for approximately 20 years and is a government initiative to encourage investment in the tourist industry which is France’s number one industry. The French government recognised that people wished to invest in tourist residences but they didn’t want the situation where properties are standing empty for a proportion of the year when they could be generating revenue. The French government will recoup the VAT rebate from the purchase of leaseback property through the taxes on goods and services that tourists will pay during their stay.
