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Many tax laws allow the tax burden of property ownership to be offset against the rental income, however the tax regime differs in many countries and we advice that you check with your tax counsel what regime is best for you.
Tax law varies from country to country and the effect on the net income stream from a leaseback investment in France requires expert advice in your country of tax residency.
Property in France by law falls under French tax law, yet may be re-directed as a result of a double taxation treatment with your country of tax residency.
There are two mainstream regimes in Europe.
1. Rental income is not taxed and the mortgage premium cannot be deducted from income.
2. Rental income is taxed and the mortage is deductable.
Again there are variances in various countries and ways to deal with the risk of falling under one regime that taxes the income part and another regime where the mortage cannot be offset. In most cases this problem can be overcome relatively simply.