Usage of Leaseback Property

5 posts / 0 new
Last post
Usage of Leaseback Property

Does anyone know if the holiday operator of your leaseback property is allowed use your property for long term letting say for 3 or 6 months during the off season ? Is this breaking any of the Residence de Tourisme rules that might impact on your VAT refund?    Thanks 

I would suggest that they are breaking the rules - in that -  if they are renting out of season then they cannot be offering breakfast etc as there will be no one on the site your lease probably staes its for seasonal rentla ie Easter to Halloween

Operator will often rent a portion of apartments long-term or find tenants for winter lets and also rent to tourists in summer peak July Aug (or Jan-Feb in ski resorts).

The benefit to operator is they don't have to collect 10% TVA or pay TVA on those lets as they are not Residence de Tourisme lets.
An operator will often use another sister company for the non RdT lets so in this case the operator is probably RdT compliant as they just manage tourist for a few weeks in summer but the other company can manage non RdT lets and not charge TVA. Operator paid the long-term rental income by sister company later.

An operator that doseent bother using a sister compant is non RdT compliant. Have a look at their accounts. The operators tax bill should cover 10% TVA on all rent and equivalent of taxe d'habitation paid for owners. So "turnover" = rental-income should at very least be just 10 times amount of tax paid. If "turnover" or rental-income in accounts is 30 40 or more tax paid then you know a large proportion of the rental-income is not "tourist revenue" and generated from winter or longterm rentals.

Some operators tourist revenue may only be a small portion of total rental income especially in resorts which could never attract many tourists due to poor locations etc.


In other words...they are we all know!

Agreed crooks, bandits, legalised thieves

You must sign up or login to access more forums.