- French VAT at 5.5% applies to deliveries and self-supplies of housing intended for occupants under approved lease-to-own (location-accession) contracts, provided the project has a convention and prefectural approval.
- French VAT at 10% applies to sales of building land intended for housing projects that qualify for the 5.5% reduced-rate social homeownership regime, if the buyer certifies the intended use in the sale deed.
- A lease-to-own contract is treated as two successive stages for tax purposes: a rental phase with a rental/acquisitive payment, followed by transfer of ownership upon option exercise and payment of the balance; if the contract ends without purchase, the acquisitive portion is refunded after deduction of an indemnity.
Source: bofip.impots.gouv.fr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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