5 Reasons You Should Invest In French Real Estate

France has become one of the largest investment markets in the European continent. France’s strong economy and legal structure, together with its rich history and culture, make it a popular destination for real estate investors. So, if you want to get the most of your real estate investment, you need to be sure that the economy is growing and that the real estate market is providing an excellent return. And France’s economy tends to deliver an excellent return. It would help if you learned about France real estate at AmonAvis since it is a French reviews website.

However, we will be discussing reasons now is a good time to invest in France real estate. 

  1. Robust market

The French housing market has been continuously increasing for the past five years, and the COVID-19 pandemic did not have as much of an influence as you might assume. French house prices increased from the end of 2015 to the second half of 2020, with an average increase of 5.8% across the country.

Real estate sales started up again when the epidemic was over, despite a slowdown during the pandemic. In addition, the number of house loans in France has increased as a result of historically low mortgage interest rates. You can visit Manomano for some house items when you start building a house in France to enjoy the robust market. 

  1. Rental income taxes

Non-residents pay a 30 percent tax on their net rental income. In addition, the taxpayer must pay 7.5% in social costs, or 17.2% if they are not a citizen of the EEC or EU.

Unfurnished rental revenue is exempt from VAT; however, the owner might charge VAT on rental income. In this case, the owner can deduct VAT expenses incurred on the property, such as those incurred on building or renovations.

A non-resident company’s rental income is taxed at a rate of 15 percent if the rental income is less than €38,120 and 28 percent if it is between €38,121 and €500,000; the rate rises to 33.33 percent if the rental income. This a favorable opportunity for everyone who is not a France citizen compares to other countries’ rental income taxes.

  1. Rebounding Economy

With a GDP gain of 7.4% in 2021 and a prediction of 3% in 2022, the economy is likely to bounce back strongly. Due to the pandemic’s effects, there was an 8.7 percent drop in the economy’s growth. As a bonus, France’s economic performance throughout the pandemic was better than Germany, Italy, or the United Kingdom’s. Exports account for only 30% of France’s Gross Domestic Product (GDP), which is better than the other countries stated above, which have exports accounting for between 9 and 13% of their GDP.

  1. Strong rental profit

A few regions in France are always a good choice for renting. Whether you decide to rent your property, you can rent it both in the summer and winter. Buyers looking for a house to buy also rent a few months to explore the area while still hunting for a home.  

Consider, for example, a famous French Riviera town. During a summer day, you might spend the day lazing on the beach, dining at a seaside restaurant; Sunlight and mild temperatures prevail in the winter, providing you lots of outdoor activities without the crowds.

  1. It’s a great place to retire

Accordingly, as the northern European populace ages, more people are likely to invest in second homes in France’s Cote d’Azur region, ideal for retirement. Many famous places of France are also easily accessible to retirees who want to invite their children and grandchildren to visit for a week or who wish to come and go as they please.