Rental guarantee = property price reduction
The French Conseil d’État recently confirmed that, as a rule, a rental guarantee is only a condition of the sale, thereby justifying a reduction in the purchase price initially agreed upon for the property. In his article “Une garantie de loyer est une réduction du prix de vente de l’immeuble” (Expression Acheter-Louer.Fr, n° 53 novembre/décembre 2016), Réginald Legenre, Of Counsel, reviews the decision and its impact on VAT liability.
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