English
FrançaisHi all,
I'm hoping to tap into the wealth of knowledge and experience here on the forums!
Has anyone experience of Terresens 'CRT' (https://www.terresens.com/en/taxation/crt-terresens/)?
It doesn't appear to be a classic leaseback but has some similar features (recover of VAT) etc but as far as I can see does not guarantee any kind of return. There is some more info here in French https://www.terresens.com/fiscalite/crt-terresens-faq/
Thanks!
O
The blurb at https://www.terresens.com/en/taxation/invest-in-abroad/ is standard LMP/LMNP leaseback with list of well known leaseback managers. Client's of some of those managers have posted almost all the formum messages on this site since 2004 - none of them complimentary.
Thank you for that - it does mention some of the "usual suspects" but the CRT thing is presented as a different 'thing'.
I was hoping to find someone who has direct experience of this or knows more about it - I really don't want to go down the leaseback route and suffer but they have some interesting properties and locations.
You buy. However you only get the Vat(TVA) back in return for allowing the "management company" rent your apartments to tourists for 20 years
The problem is the lease/contract or whatever name it is given only "ends" when both parties agree. If you want you property back at end of the 9 years or whatever term and "management company" do not agree then you are forced to issue an Eviction-order (conge) and the "management company" have a legal right" to ask you for Eviction-Indemnity(compensation) before they hand keys back. They have that right for any contract greater than or equal to a 3-year tenancy. In practice they will ask for a very large amount which you will not agree to and then goes to a judicial hearing where usual outcome is an award of 2 to 3 years of the "turnover" "management company" earned on your apartment paid to them as compensation. This should not be confused with the "rent" you earn - it is 2 to 3 years x the rental income "they" earn on property from tourists.
The other issue is the TVA agreement means you must in effect "lease" you apartmebnt for 20 years or you pay back portion of TVA prorata.
So question you have to ask yourself is:
Are you willing to leave "management company" control your property for 20 years as you cannot sell with lease attached?
Is the rent you will receive + the 3 years compensation you pay "management company" at end greater than the TVA and all the associated risks?
Risks would be
"management company" not surviving for 20 years.
Not being able to pay you rent for 20 years and no recourse to end lease if that happened
If you have read these forums and still willing to consider entering business witth these French crooks then it's your problem. Don't say you weren't warned.
Hi There,
Just thought i'd ressurect this and ask if you went ahead with it? I've been trying to figure out if buying with Terresens under this framework is OK.
I've been told multiple times during the negotiation / sales process that under the aggreement you can cancel at 3/6/9 years with no penalty. I'm at early stages with this so
not paid a deposit or seen any paperwork, being ever the sceptic I'm looking for reassurrances and it sounds from this thread that the no penalty thing may be suspect!
Cheers!