4/ Tax incentives

With the leaseback system you come under a very advantageous tax regime (see LMNP status) and will be able to deduct all the various costs, transaction fees, mortgage interest payments, taxe foncière (land owner's tax), maintenance not covered by the management company, accountant's fee and a certain percentage of the price of the property and the furnishings will be amortised every year. Your accountant will structure the deal to avoid paying any income tax and the general rule is that you will pay no income tax at all on your rental income for up to 30 years if you take a mortgage. Without a mortgage, you will not pay any tax on your income from your property for the first 20 years and will begin to pay a small amount from the 21st year onwards.