How to use the 20% VAT rebate on ski properties in France

When purchasing a ski property in France, it’s crucial to account for additional costs beyond the listed price. But there are also opportunities. Such as a 20% VAT rebate… if you know how to qualify.

The VAT refund is specifically for new build properties in France and represents a substantial saving, especially as luxury ski properties can be a significant purchase. Some developers have also learned of a way to pass the rebate onto you as part of the purchase.

How the 20% VAT rebate works

For buyers planning to rent out their ski property, France offers a lucrative incentive: the ability to reclaim 20% VAT. However, there are specific conditions to qualify. For instance, the property must be fully furnished and lets can only be short-term, with no tenant staying longer than 30 consecutive days.

Finally, the least three of these four services: Personalised reception and check-in, bed linens, regular cleaning services or breakfast.

Ski property expert and SnowOnly founder Mark Lightfoot walked us through the scheme in our webinar on buying property in France’s Three Valleys ski area. He notes that the VAT rebate is a key driver behind the popularity of new developments. “99% of buyers will buy a unit in a development and then rent it out, which allows you to claim the 20% VAT rebate,” he explains. “If we do some easy maths: if the development was €1m, to reclaim the rebate, you pay the €1m and claim back the €200,000 later in the year.”

An innovative approach at Courchevel

While most buyers must initially cover the VAT themselves and wait for a refund, one of the developers Lightfoot works with, Alpine Lodges, is currently offering a promotion for their Steamboat and Sundance developments in Courchevel Moriond.

“Alpine Lodges is prepaying the VAT, which means you don’t have to find the €1m—you just pay the €800,000,” says Lightfoot. “That €200,000 will be reclaimed by the developer. You just need to enter into the rental agreement, which 99% of people do.”

This unique approach eliminates the cash flow challenge of paying VAT upfront and waiting for reimbursement. “It’s no surprise their properties are selling super quick,” Lightfoot adds. “In the last two weeks, six of seven units have already sold.”

Savings on fees

With any French property purchase, you need to make sure you account for the additional notary fees. These go to the legal experts who handle the paperwork between buyers and sellers.

Notary fees, which vary depending on the property’s age, can significantly impact the total investment.

“As a rule of thumb, there are 2.5% notary fees on the cost of any development that is under five years old,” Lightfoot explains. “Anything that is a resale, typically over five years old, is anything from 8–9%. That makes quite a bit of difference—especially on high-value purchases.”

For example, a buyer purchasing a resale property worth €300,000 would pay up to €30,000 in notary fees, whereas a new-build purchase would only incur around €8,000. At higher price points, the disparity becomes even more pronounced.

New builds offer other advantages

New developments in the French Alps offer a financial incentive beyond lower notary fees, Lightfoot says. “With new-build property, you also have stage payments, which means you don’t need to pay everything upfront.”

Unlike resale properties, where the entire sum is due upfront, new-build properties allow buyers to spread payments over the construction period.

While the VAT rebate and financial advantages make new-build properties an attractive option, resale properties remain a compelling choice for some buyers.

Is a new build right for you?

“New build doesn’t work for everyone,” acknowledges Lightfoot. “Maybe they want a larger chalet, and resale’s the only option they can get, so they’ll happily pay the fees.”

However, for international buyers who plan to rent out their ski home, the financial benefits of new-build developments—combined with the VAT rebate—often make them the preferred choice.

You can look at Alpine Lodges developments for yourself. As well as Sundance and Steamboat, there are properties in Méribel, too.