Our territory’s wealth, so enjoyable that it sometimes seem hard to share, has been however a source of happiness for tourists from the whole world for more than half a century, and from the 17th century, an aristocratic Grand Tour could not be conceived without a few French stopovers. 2016 numbers ensure the French success durability, remaining the world’s first tourism destination with 82,6 millions lucky visitors, for an income of almost 160 billions Euros, representing more than 7% of France’s GDP.

This good health reminds the importance of visitors for France, in a context of great competition in international tourism. If they come to discover the exceptional French heritage, holiday-makers are from now on more demanding and setting higher standards in terms of quality accommodation. Therefore, Tourism residences, representing 12% of the tourist facilities in France, are becoming a rapidly expanding market, their principle assuring quality structures and adapted services.

A Tourism residence is indeed a property designed for holiday rental and so, fully equipped and furnished. Located in the most attractive sites of our territory, by the sea, in the countryside, or in the mountains, these residences are therefore rented daily, weekly or monthly. More than a simple hotel, the equipments are designed for tourism comfort, and also offer extra facilities, compared to a simple flat, as services of reception, maintenance, laundry and even breakfast. High standing residences can also offer top-end services like fitness hall, swimming pool or spa.

Thereby, to invest in Tourism residence is now the most sought-after way to enjoy both a secure and serene yield, and an occasional pleasure. Indeed, once the purchase completed, the apartment is entrusted to a management company with a 9 to 11 years commercial lease, dealing with the property rental, the maintenance of the place, and the collection of rent. The buyer receives then a fixed rent defined when the property is purchased, without having to be concerned about the worries of renting. But also, he can decide with the company to benefit from the property during, for example, a few weeks in the year.

More than this yield guaranty, that can reach until 4.5%, to invest in a Tourism residence allows also to benefit from tax advantages. The investor can benefit from the Non-professional rental of furnished property regulation (LMNP), and thus, from a 50% fixed tax abatement on the generated income as micro BIC (CIP : Commercials and industrials profits). If the lessor chooses the real tax system (régime fiscal net), he can also subtract the real amount of the charges in order to amortise the property as well as the furniture. Last, if the rental income exceeds 788 000 euros, the renter must declare the standard real tax system (régime réel normal), allowing also to subtract the paid charges amount.

So, investments in Tourism residence meet with resounding success, based on a secure yield, great tax concessions, and a French tourism sector always more competitive, making the loans really easier from the banks. But if it is fully appreciated, it is overall for the peace of mind, the lack of management, and even an occasional natural advantage for a few weeks during the year.