English
FrançaisThere is a demand for Pierre et Vacances leasebacks. Please use the “SELL MY LEASEBACK” option if you are interested. Note if you do sell during the lease you will likely receive less than you paid, but the law has changed so you no longer have to pay back the VAT which was initially refunded to you when you first bought the property and the buyer pays all legal fees.
Regards
Seamus McConville
Comments
kodelig
Hi Seamus - interested in the
11 May 2014Hi Seamus - interested in the change of law about the VAT - if we do not lease back to PV do we still have to pay back the VAT then?
Seamus
I presume you mean if you end
12 May 2014I presume you mean if you end your lease with P&V? If that is what you are asking then you do have to pay back the VAT pro-rata. You do not have to pay back the VAT so long as your property remains a leaseback. That means when you sell the property, if you sell as a leaseback (i.e. the new onwer takes over the remaining lease) then you do not pay back the VAT, but if you end the lease (or the lease has ended) then whether you sell or not you must pay back the VAT pro-rata.
kodelig
Hi Seamus
20 August 2014Hi Seamus
Your replied to my email a while back about paying back the VAT if we end the leaseback with Pierre et Vacances and also if we decide to sell. What is the situation if we end the leaseback with PV but keep the appartment and let it out commercially ourselves? Do we still have to pay back a portion of the VAT ? If not what documentation do we need for the tax authorities to see that the appartment continues to be commercialised as a tourist property?
Also do you or does anyone out there have any ideas of the latest amount of refurbishment costs PV are asking owners to pay at the end of the lease for small residences? Ours has just 72 appartments and is only open for 5 months of the year now...it is not looking as if it will need much doing at all but we are unsure how much PV will try to charge us. We have seen that it can be exorbitant amounts - hence we are now wondering about not renewing the lease. We have also heard that the amount of rent payable has in some cases been halved. We would be interested in hearing from anyone with a property in the Guilvinec residence as that is very similar to ours and the lease renewal went through a couple of years ago it seems with a lot of owners continuing to lease back. Our lease is up for renewal in 2017 but we are trying to keep informed so that we do have to make knee jerk reactions.
Thank you for your reply or for others.
Kodelig
Seamus
You do not have to pay back
20 August 2014You do not have to pay back the VAT if you keep your leaseback (lmnp) status and to do that you have to prove to the tax office that you provide at least 3 services - I can't remember what they all are but most people prove key holding, linen and cleaning - a copy of a letter from your local mgt company is suffice for this. There may be another thing which is necessary too which I have seen applied aty some residences and that is that at least 70% of the co-owners must use the same company to manage their property. But I am not sure how the tax office would check the latter so it may not be applicable in your case.
kodelig
Thank you for this - I too
22 August 2014Thank you for this - I too have seen something about the management agency holding at least 70% of the properties but possibly if that is still the case with the majority of owners leasing back to PV the residence still holds its residence de tourisme status so the odd stray one may be ok. Would need to get that checked by a lawyer. I think PV will only consider managing a residence if 70% owners stick with them in the second round otherwise they too can opt out which has or is going to be the case in some cases it now seems. It is a business arrangement for them so it has to be viable.