What if 2025 was the Year of Real Estate Investment! With the end of the Pinel tax framework, a French housing stock that is only waiting to be developed and investors who are gaining in borrowing capacity with the reduction in interest rates. In this context, para-hotel rental is developing and opening up new perspectives. But what is the para-hotel regime?

The principle, a property offering a service that is close to a hotel service. This is a specific scheme for furnished rentals offering at least three of the following four services:

• Providing breakfast,

• regular cleaning of the premises,

• the provision of household linen,

• Customer reception.

Unlike managed residences (often with a commercial lease), the management of a para-hotel rental property is done directly with the tenants. However, the owner may delegate management to a third party via a mandate, provided that he remains responsible for the risk related to the operation (rental holidays, deterioration, etc.).

However, don’t panic, specific guarantees can be taken out to protect you!

Tax-wise, the para-hotel activity is taxed as furnished rental and therefore falls under the rules of industrial and commercial profits (BIC). The main advantage of this tax is to deduct from pre-tax income the costs actually incurred as well as the depreciation of the various components of the property (real estate and movable).

The difference is in VAT. Indeed, if the renter meets the conditions mentioned above, he is then subject to VAT on the revenues of his furnished rentals and additional services provided. On the other hand, he can claim recovery of VAT on his expenses and the purchase price of the building.

Today, this scheme is perfectly suited for senior citizens, tourists or students and meets major needs.

However, although there is a tax incentive, due to the fact that it can generate additional income not subject to taxation, it is important to remember that in real estate investment: the tax advantage must not be the only trigger. Tax optimization should be the icing on the cake! Indeed, all attention must be paid to a fine analysis of the project, its various aspects (location, costs,...) and its relevance in your patrimonial situation.

To do so, it is essential to be accompanied to understand all the issues of your investment both today and in the long term. The team of Finankap Group is therefore at your disposal to meet your future heritage challenges!

Finanakap Group, always by your side to give life to your desires