{"id":5184,"date":"2026-05-20T09:07:05","date_gmt":"2026-05-20T09:07:05","guid":{"rendered":"https:\/\/www.ptireturns.com\/blog\/?p=5184"},"modified":"2026-08-26T05:43:07","modified_gmt":"2026-08-26T05:43:07","slug":"reclaim-vat-on-french-property-purchases","status":"publish","type":"post","link":"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/","title":{"rendered":"How Non-Residents Can Reclaim 20% VAT on French Property Purchases"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Many international investors are surprised to learn that <\/span><a href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/\" target=\"_blank\" rel=\"noopener\"><b>foreigners can buy property in France<\/b><\/a><span style=\"font-weight: 400;\"> with relatively few restrictions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In certain cases, non-resident buyers may also be able to reclaim the 20% VAT charged on the purchase price, which can significantly improve overall returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This opportunity usually applies when purchasing <\/span><b>new build developments, serviced residences, or commercial property investment assets<\/b><span style=\"font-weight: 400;\"> that will be used for a VAT-taxable rental activity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understanding the French VAT rules before buying or <strong>selling property in France<\/strong> is essential, particularly if you intend to generate rental income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PTI Returns regularly helps non-resident investors register for French VAT, submit returns, and reclaim VAT on qualifying property purchases.<\/span><\/p>\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#VAT_on_New_Build_Houses_in_France_How_It_Works\" >VAT on New Build Houses in France: How It Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#When_VAT_Applies_in_France_New_Builds_Serviced_Residences_and_Commercial_Property\" >When VAT Applies in France (New Builds, Serviced Residences and Commercial Property)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#How_much_VAT_do_you_pay_on_commercial_property\" >How much VAT do you pay on commercial property?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#What_are_the_conditions_for_VAT_reclaim\" >What are the conditions for VAT reclaim?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#How_to_avoid_French_Capital_Gains_Tax_on_property\" >How to avoid French Capital Gains Tax on property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#Claim_back_French_VAT_with_PTI_Returns\" >Claim back French VAT with PTI Returns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"VAT_on_New_Build_Houses_in_France_How_It_Works\"><\/span>VAT on New Build Houses in France: How It Works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In France, a 20% VAT rate can apply when you buy a new build property sold within five years of completion, as well as serviced or tourism residences used for rental purposes. This differs from most traditional resale properties, where VAT typically doesn&#8217;t apply at all.<\/p>\n<p>If the property is placed into a qualifying rental scheme &#8211; such as a leaseback agreement or one offering hotel-style services &#8211; non-resident investors may be able to register for VAT and reclaim the amount paid on the purchase price, provided the property stays within the scheme for the required period.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_VAT_Applies_in_France_New_Builds_Serviced_Residences_and_Commercial_Property\"><\/span><b>When VAT Applies in France (New Builds, Serviced Residences and Commercial Property)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In most traditional property purchases, VAT does not apply. However, VAT becomes relevant in several situations, particularly where the property is treated as a commercial or tourism asset.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>France VAT tax rate is generally 20%<\/b><span style=\"font-weight: 400;\">, and it may apply when purchasing:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> new build property sold within five years of completion<\/span><\/li>\n<li><span style=\"font-weight: 400;\">serviced or tourism residences<\/span><\/li>\n<li><span style=\"font-weight: 400;\">some commercial property for rent<\/span><\/li>\n<li><span style=\"font-weight: 400;\">property operated with hotel-style services<\/span><\/li>\n<\/ul>\n<h3><b>VAT for new builds<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">French tax law typically applies <\/span><b>VAT for new builds<\/b><span style=\"font-weight: 400;\"> when a property has not been previously occupied or is sold shortly after completion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors who purchase qualifying developments and operate them as a rental business may be able to <\/span><b>claim VAT on new build purchases<\/b><span style=\"font-weight: 400;\">. This is particularly common in tourism developments where properties are placed into managed rental schemes.<\/span><\/p>\n<h3><b>VAT on residential property rent<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Standard long-term residential leases are generally exempt from <\/span><b>VAT on residential property rent<\/b><span style=\"font-weight: 400;\">. However, VAT can apply if the rental activity includes hospitality-style services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This may include services such as cleaning, linen replacement, reception services, or breakfast. These conditions are often present in serviced apartments or <\/span><a href=\"https:\/\/www.ptireturns.com\/blog\/changes-to-french-furnished-lettings\/\" target=\"_blank\" rel=\"noopener\"><strong>furnished apartment rental properties in France<\/strong><\/a> targeting short-term visitors.<\/p>\n<p><b>PTI Returns<\/b><span style=\"font-weight: 400;\"> helps investors structure their rental activity correctly so that VAT recovery remains compliant with French regulations.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-block-buttons is-content-justification-center\">\r\n<div class=\"text-center\"><strong><a class=\"wp-block-button__link has-background\" style=\"background-color: #c33a32;\" href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/#request-callback\" target=\"_blank\" rel=\"noreferrer noopener\">FILE YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div>\r\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5187\" src=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details.jpg\" alt=\"Claiming VAT on French Property purchase\" width=\"2121\" height=\"1414\" srcset=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details.jpg 2121w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-300x200.jpg 300w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-1024x683.jpg 1024w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-768x512.jpg 768w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-1536x1024.jpg 1536w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-2048x1365.jpg 2048w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-780x520.jpg 780w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-1000x667.jpg 1000w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Blonde-client-listens-to-real-estate-agent-contract-details-1400x933.jpg 1400w\" sizes=\"auto, (max-width: 2121px) 100vw, 2121px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_much_VAT_do_you_pay_on_commercial_property\"><\/span><b>How much VAT do you pay on commercial property?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For properties within the VAT system, the <\/span><b>France VAT tax rate of 20%<\/b><span style=\"font-weight: 400;\"> usually applies to the purchase price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if an investor decides to <\/span><b>buy commercial property<\/b><span style=\"font-weight: 400;\"> worth \u20ac500,000, the VAT due could be \u20ac100,000. If the investment qualifies for VAT recovery, this amount may be reclaimed through the French VAT system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why many investors structure their purchases as <\/span><b>commercial property investment<\/b><span style=\"font-weight: 400;\"> rather than purely residential acquisitions.<\/span><\/p>\n<h3><b>VAT on commercial property rent<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In some situations, landlords can choose to charge VAT on rent for commercial property. This can be beneficial because it allows the owner to recover the VAT paid on the purchase or renovation of the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the property is a new build located in a <\/span><i><span style=\"font-weight: 400;\">R\u00e9sidence de Tourisme<\/span><\/i><span style=\"font-weight: 400;\">, and you are required to sign a <a href=\"https:\/\/www.ptireturns.com\/blog\/your-taxes-on-leaseback-rental-property-in-france\/\" target=\"_blank\" rel=\"noopener\"><strong>leaseback agreement<\/strong><\/a>, you will usually be required to register for VAT.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the letting agency (with whom you have the contract) will collect the rent including VAT and pay the VAT directly to the French tax authorities. You will receive the rent without VAT, and you can also recover the VAT you paid on rental-related expenses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second situation is when you <a href=\"https:\/\/www.impots.gouv.fr\/particulier\/achat-dans-le-neuf\" target=\"_blank\" rel=\"nofollow noopener\"><strong>buy a new build property<\/strong><\/a> and provide at least 3 out of the 4 required services (such as hotel-style services). In this case, you have the option to register for VAT.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you choose to register, you will charge VAT on the rent you receive. You are then responsible for paying this VAT to the tax authorities, but you can also reclaim the VAT you have paid on expenses related to the rental activity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This approach is common with:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">retail units<\/span><\/li>\n<li><span style=\"font-weight: 400;\">serviced residences<\/span><\/li>\n<li><span style=\"font-weight: 400;\">tourism accommodation<\/span><\/li>\n<\/ul>\n<h3><b>Claiming VAT on new build property<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Investors purchasing qualifying developments may be able to <\/span><b>claim VAT on new build property<\/b><span style=\"font-weight: 400;\"> by registering for VAT and declaring taxable rental income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once registered, owners must file periodic VAT returns and report rental activity to the French tax authorities.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-block-buttons is-content-justification-center\">\r\n<div class=\"text-center\"><strong><a class=\"wp-block-button__link has-background\" style=\"background-color: #c33a32;\" href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/#request-callback\" target=\"_blank\" rel=\"noreferrer noopener\">CLAIM YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div>\r\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-5186\" src=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment.jpg\" alt=\"A smiling young couple carrying boxes and a plant into their new modern French apartment, highlighting the excitement of a new home purchase.\" width=\"2120\" height=\"1414\" srcset=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment.jpg 2120w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-300x200.jpg 300w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-1024x683.jpg 1024w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-768x512.jpg 768w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-1536x1024.jpg 1536w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-2048x1366.jpg 2048w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-780x520.jpg 780w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-1000x667.jpg 1000w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/A-happy-young-couple-moving-into-a-new-apartment-1400x934.jpg 1400w\" sizes=\"auto, (max-width: 2120px) 100vw, 2120px\" \/><\/p>\n<h3><b>New build VAT exemption<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you are not able to organise the rental activity and therefore cannot provide at least 3 of the 4 required services, the property will not meet the conditions to opt for VAT registration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the property will not be eligible to recover the VAT paid on the purchase price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For this reason, investors should consider the intended rental structure before completing the purchase.<\/span><\/p>\n<h3><b>How to claim a VAT refund online<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Investors generally recover VAT by registering with the French tax authorities and submitting returns through the online portal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process usually involves:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> registering for French VAT<\/span><\/li>\n<li><span style=\"font-weight: 400;\">reporting <\/span><b>VAT on property sales or rental activity<\/b><\/li>\n<li><span style=\"font-weight: 400;\">submitting periodic returns<\/span><\/li>\n<li><span style=\"font-weight: 400;\">requesting the <\/span><b>VAT tax refund France<\/b><span style=\"font-weight: 400;\"> through the online system<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">PTI Returns assists non-resident investors with <\/span><a href=\"https:\/\/www.ptireturns.com\/blog\/french-property-vat-refund-guide\/\" target=\"_blank\" rel=\"noopener\"><b>how to claim a VAT refund online<\/b><\/a><span style=\"font-weight: 400;\"> and manages the VAT return process on their behalf.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-block-buttons is-content-justification-center\">\r\n<div class=\"text-center\"><strong><a class=\"wp-block-button__link has-background\" style=\"background-color: #c33a32;\" href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/#request-callback\" target=\"_blank\" rel=\"noreferrer noopener\">CLAIM YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div>\r\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4995\" src=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund.jpg\" alt=\"A graphic with a torn-paper effect. The outer brown layer says &quot;French Real Estate for Foreign Investors,&quot; while the revealed white inner layer displays the text &quot;VAT Refund&quot; in blue letters.\" width=\"1400\" height=\"733\" srcset=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund.jpg 1400w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund-300x157.jpg 300w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund-1024x536.jpg 1024w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund-768x402.jpg 768w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund-780x408.jpg 780w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/02\/french-property-vat-refund-1000x524.jpg 1000w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">If these conditions are not maintained, previously refunded VAT may be clawed back by the tax authorities.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_conditions_for_VAT_reclaim\"><\/span><b>What are the conditions for VAT reclaim?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To qualify for <\/span><b>VAT reclaim for new build property<\/b><span style=\"font-weight: 400;\">, certain conditions must normally be satisfied.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The property must usually be used in a VAT-taxable rental activity, which commonly includes serviced accommodation or managed holiday rentals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Examples include:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> serviced holiday accommodation<\/span><\/li>\n<li><span style=\"font-weight: 400;\">tourism residences<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Under these structures, investors may recover <\/span><b>VAT <\/b><span style=\"font-weight: 400;\">on new build houses or apartments purchased within the development. In many cases, the property must remain within the rental scheme for 20 years to keep the VAT benefit.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_avoid_French_Capital_Gains_Tax_on_property\"><\/span><b>How to avoid French Capital Gains Tax on property<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While VAT recovery can reduce the acquisition cost, investors should also consider<\/span><b>\u00a0Capital Gains Tax<\/b><span style=\"font-weight: 400;\"> when eventually <a href=\"https:\/\/www.ptireturns.com\/blog\/property-tax-france-ultimate-french-tax-guide\/\" target=\"_blank\" rel=\"noopener\"><strong>tax implications of selling a property in France<\/strong><\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tax liability may be reduced through several factors including long-term ownership, deductible improvement works, and allowable acquisition costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">French Capital Gains Tax gradually reduces the longer the property is held, which can significantly lower the effective tax rate over time.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-block-buttons is-content-justification-center\">\r\n<div class=\"text-center\"><strong><a class=\"wp-block-button__link has-background\" style=\"background-color: #c33a32;\" href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/#request-callback\" target=\"_blank\" rel=\"noreferrer noopener\">FILE YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div>\r\n<\/div>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5194 size-full\" src=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer.jpg\" alt=\"A professional real estate agent in a modern office using a digital tablet to present a commercial lease and property investment data to a client.\" width=\"2120\" height=\"1415\" srcset=\"https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer.jpg 2120w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-300x200.jpg 300w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-1024x683.jpg 1024w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-768x513.jpg 768w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-1536x1025.jpg 1536w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-2048x1367.jpg 2048w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-780x521.jpg 780w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-1000x667.jpg 1000w, https:\/\/www.ptireturns.com\/blog\/wp-content\/uploads\/2026\/03\/Real-estate-agent-using-digital-tablet-to-show-property-to-potential-buyer-1400x934.jpg 1400w\" sizes=\"auto, (max-width: 2120px) 100vw, 2120px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Claim_back_French_VAT_with_PTI_Returns\"><\/span><b>Claim back French VAT with PTI Returns<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Reclaiming <\/span><b>20% VAT on a French property purchase<\/b><span style=\"font-weight: 400;\"> can significantly improve the return on investment, but the process involves strict eligibility rules and ongoing compliance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PTI Returns helps non-resident investors:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> register for French VAT<\/span><\/li>\n<li><span style=\"font-weight: 400;\">file VAT returns online<\/span><\/li>\n<li><span style=\"font-weight: 400;\">reclaim VAT on qualifying property purchases<\/span><\/li>\n<li><span style=\"font-weight: 400;\">stay compliant with French tax regulations<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you are considering <\/span><b>buying property or investing in French rental property<\/b><span style=\"font-weight: 400;\">,<\/span><b> PTI Returns <\/b><span style=\"font-weight: 400;\">can guide you through the process and help maximise your VAT recovery.<\/span><\/p>\n<p><b>Use PTI Returns <\/b><span style=\"font-weight: 400;\">to find out how much VAT you could reclaim on your French property investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"wp-block-buttons is-content-justification-center\">\r\n<div class=\"text-center\"><strong><a class=\"wp-block-button__link has-background\" style=\"background-color: #c33a32;\" href=\"https:\/\/www.ptireturns.com\/french-property-vat-reclaim-for-foreign-investors\/#request-callback\" target=\"_blank\" rel=\"noreferrer noopener\">FILE YOUR FRENCH PROPERTY VAT REFUND ONLINE<\/a><\/strong><\/div>\r\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3>Do you pay VAT on new build houses in France?<\/h3>\n<p>Yes, VAT is generally payable when <strong>buying a new-build house in France<\/strong>, with the standard rate typically set at 20% and included in the purchase price.<\/p>\n<p>However, if the property is purchased as a qualifying rental investment, non-resident investors may be able to reclaim the VAT, provided they meet the required conditions.<\/p>\n<h3>Can non-residents reclaim VAT in France?<\/h3>\n<p>Yes, non-residents can reclaim VAT in France if they purchase a qualifying new-build, serviced residence, or commercial property that is used for a VAT-taxable rental activity. To qualify, investors must meet the French VAT rules, register where required, and comply with ongoing filing and rental obligations.<\/p>\n<h3>What is the VAT rate on new homes?<\/h3>\n<p>The standard VAT rate on new homes in France is 20%, and it is typically included in the purchase price of eligible new-build properties.<\/p>\n<h3>Is VAT included in the purchase price?<\/h3>\n<p>Yes, for new build properties and qualifying developments in France, the standard 20% VAT is typically included in the quoted purchase price (<em>Toutes Taxes Comprises or TTC<\/em>).<\/p>\n<p>However, if you rent out the property as a commercial or short-term rental with <em><strong>Para-hotel services<\/strong><\/em>, you can register for French VAT and reclaim that 20% amount back from the tax authorities.<\/p>\n<h3>What qualifies as a new build in France?<\/h3>\n<p>In France, a new build generally refers to a property that has been newly constructed and has not previously been occupied or sold. These properties are typically subject to the standard <em>20% VAT rate<\/em>, and eligible investors may be able to reclaim the VAT if the property meets the conditions of the <strong>French VAT reclaim scheme<\/strong>.<\/p>\n<h3>Do second homes qualify?<\/h3>\n<p>Second homes can qualify only if they meet the same <strong>new-build VAT rules<\/strong>, such as being purchased as a new property from a developer. In practice, the VAT treatment depends on the property type and intended use, so a second home does not automatically qualify for any VAT reclaim benefit.<\/p>\n<h3>Can I reclaim VAT on holiday homes?<\/h3>\n<p>You may be able to <strong>reclaim VAT on a holiday home in France<\/strong> if it qualifies as a serviced rental property and is used for a VAT-taxable rental activity.<\/p>\n<p>The property must meet the French VAT reclaim rules, including providing qualifying rental services and complying with ongoing VAT and reporting requirements.<\/p>\n<h3>Is VAT different from notary fees?<\/h3>\n<p>Yes, VAT is separate from notary fees. VAT is a tax on the property purchase itself, while notary fees cover the legal and administrative costs of the transaction.<\/p>\n<h3>What types of French property qualify for a VAT refund?<\/h3>\n<p>Certain new-build French properties can qualify for a VAT refund, particularly properties purchased for a qualifying furnished rental activity, such as serviced residences or holiday accommodation. The property must meet specific conditions, including being subject to French VAT and satisfying the requirements for VAT recovery.<\/p>\n<h3>How long do I need to keep renting the property to keep the VAT refund?<\/h3>\n<p>To keep the French VAT refund, the property generally needs to remain in a qualifying rental activity for at least 20 years. If the property stops meeting the VAT conditions before this period, you may have to repay part of the VAT originally reclaimed.<\/p>\n<h3>What happens to the VAT refund if I sell the property early?<\/h3>\n<p>If you sell the property or exit the qualifying rental scheme before the 20-year commitment period ends, French tax authorities can claw back the previously refunded VAT.<\/p>\n<h3>Do I need to register with French tax authorities to reclaim VAT?<\/h3>\n<p>Yes, you generally need to register with the French tax authorities to reclaim VAT on a qualifying property purchase. In most cases, registering for French VAT is a required step in the process, as you must submit returns through the online portal to request your refund.<\/p>\n<h3>Is VAT reclaim available on residential property I live in myself?<\/h3>\n<p>Generally, no. French VAT reclaim is typically available for qualifying properties used for a VAT-taxable rental activity, rather than a residential property that you occupy as your own home.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many international investors are surprised to learn that foreigners can buy property in France with relatively few restrictions.\u00a0 In certain cases, non-resident buyers may also be able to reclaim the 20% VAT charged on the purchase price, which can significantly improve overall returns. This opportunity usually applies when purchasing new build developments, serviced residences, or&#8230; <a class=\"more-link\" href=\"https:\/\/www.ptireturns.com\/blog\/reclaim-vat-on-french-property-purchases\/\">Continue reading <span class=\"meta-nav\">&#8594;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":5193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"no","footnotes":""},"categories":[8],"tags":[291,322,321,290,294,295,292,296,297,293],"class_list":["post-5184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-french-property-tax","tag-claiming-vat-on-new-build-properties","tag-rules-for-selling-houses-in-france","tag-selling-a-property-in-france-tax-implications","tag-vat-for-new-build-properties","tag-vat-on-commercial-property","tag-vat-on-commercial-property-rent","tag-vat-on-new-build-houses","tag-vat-on-property-sales","tag-vat-on-residential-property-rent","tag-vat-reclaim-for-new-build-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - 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