III: Exempt transactions

Articles in this section · 13

261261 A261 B261 C261 D261 E261 G262262 bis262 ter262-0 bis262-00 bis263

Article 261 D

French General Tax CodeIn force
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Updated 8 Nov 2023

The following are exempt from value added tax:

1° Rentals of land and buildings for agricultural use;

1° bis Rentals of buildings resulting from a lease conferring a right in rem;

2° Rentals of undeveloped land and bare premises, with the exception of parking spaces for vehicles ; however, these provisions do not apply where the leases constitute a means for the lessor to continue, in another form, the operation of a commercial asset or to increase its outlets or where the lessor participates in the results of the lessee business;

3° Leases or concessions of rights over the buildings referred to in 1° and 2° insofar as they relate to the management of a property portfolio.

4° Occasional, permanent or seasonal lettings of furnished or furnished accommodation for residential use.

However, the exemption does not apply:

a. To accommodation services provided in classified tourist hotels, classified or approved holiday villages and classified tourist residences when the latter are intended for tourist accommodation and are leased under a contract for a period of at least nine years to one or more operators who have entered into a commitment to promote tourism abroad under the conditions laid down by a decree of the Conseil d'Etat;

b. To the provision of furnished or furnished premises on a regular basis for consideration, including in addition to accommodation at least three of the following services, provided under conditions similar to those offered by professionally operated hotel accommodation establishments: breakfast, regular cleaning of the premises, supply of household linen and reception, even if not personalised, of customers.

c. Rentals of bare, furnished or furnished premises granted to the operator of an accommodation establishment that meets the conditions set out in a or b, excluding those granted to the operator of an establishment mentioned in article L. 633-1 of the Construction and Housing Code, the activity of which does not give rise to a right to deduction.

d. (Not applicable).

Mariela Petrova

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Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Mariela Petrova

Mariela Petrova

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