Rhône Alpes
Résidence
“Voltaire Palace”
"2 kms from Geneva,
the ultimate professional Furnished Rental investment for 2006."
Geographical location
By road :
A40 Bellegarde exit, then D984 - "Genève par Pays de Gex"
RN5 via Col de la Faucille
By train :
TGV station of Geneva-Cornavin (2 km from the Residence), French sector, then bus F
from the station (runs every half hour)
Bellegarde station, then SNCF bus "Bellegarde-Divonne"
By air :
Geneva Airport, French sector at Ferney-Voltaire (five minute car journey from the
Residence)
■ Average monthly saving 284 e
■ Tax reduction objective / tax savings made 8 393 e
■ Income objective / tax free income complement 318 102 e
■ Capital objective / capital acquire after 20 years 181 609 e*
■ Protection objective / capital insured from the 1 st day 124 662 e
Résidence Voltaire Palace
Example of an investment made within the framework
of the LMNP (Non Professional Furnished Rental) status
In compliance with Article 151 septies of the General Tax Code; Articles 1708 to 1762 of the Civil Code
and Article L 632-1 of the Construction and Habitat Code)
Personal situation :
Family situation Married
Number of dependents 0
Number of parts (tax quotient) 2
Income (e per year) 30 000 e
Industrial and commercial profit 0 e
Net property income 0 e
Income after abatement 27 000 e
Income tax 1 303 e
Investment selected :
Tax regimel LMNP
Résidence Voltaire Palace
Lot 102
Amount tax inclusive 124 662 e
Monthly rent 484,45 e
Recommended financing method for the investment : In Fine
Contribution 0 e
Capital borrowed 137 128 e (Expenses included)
Loan rate (nominal rate in %) 3,75%
Death and invalidity insurance 0,30%
APR 4,05%
Duration (months) 240 months
Franchise 12 months
Monthly instalment (in e) 463 e
Collateral security (capitalisation at 4.5%/year) 8 393 e (VAT)
Subsidiary credit (capitalisation at 4.5%/an) 1 000 e
Abondement (voluntary contributions) 220,61 e / months
Investment result in terms of Capital Savings Objective
*Revaluation of 2% per year.
Participation in financing
■ Mr. et Mrs. Rodriguez
■ Tenant
■ Tax departments
70% 26%
4%
Subject to eligibility and approval from our partner. Offer not legally binding.
Economic situation
Ferney Voltaire, close Geneva suburb.
Voltaire spent the last twenty years of his life in Ferney (1758-1778). No longer welcome
at the French Court, Voltaire settled in Ferney in 1758, a French area near Geneva
and Switzerland where he would "cultivate his garden" whilst usefully managing his
affairs.
Alternatively farmer, entrepreneur, architect and town planner, he improved the lot of
farmers and craftsmen.
Author of numerous tragedies, he staged his plays in his own theatre. Voltaire welcomed
most of the enlightened minds of the time to Ferney and through his extensive correspondence
and stories he contributed to the circulation of "Lumières".
The town is six kilometres from Geneva and 500 km from Paris. Today it has a population
of nearly 10,000 made up of a hundred or so nationalities.
Although very attached to its past (Voltaire's chateau has recently been purchase by the
French State for conversion into a Cultural Meeting Centre), Ferney-Voltaire is also well
up with the times and open to the world.
Its International secondary school and sixth-form college (one of the largest in France)
offers first-class teaching in seven languages (French, English, German, Italian, Spanish,
Dutch and Swedish).
Several NGO (Non-Governmental Organisations), working with the United Nations
European Centre in Geneva, are installed in Ferney-Voltaire, where the Secretary-
General of the United Nations recently open the International Disabled Persons Centre,
uniting seven associations in a world headquarters.
There are a number of socio-cultural associations with a wide range of activities (Fête
de l'Europe, African cinema days, Hispanic culture "from two worlds", etc.). Ferney-
Voltaire is part of the Pays de Gex urban community.
A favoured geographical location :
On the border between the Rhône-Alpes Region and Switzerland and at the gateway to
Geneva, the Pays de Gex plays an active role in the combined vitality of the second largest
French region and the Lake Geneva basin, with a population of 7.5 million. The job
pool less than an hour's drive away accounts for over one million residents.
Economic situation
High-performing infrastructures :
Another key factor in business activity is the excellent transport infrastructures found in
Pays de Gex: Swiss and French motorways nearby, TGV stations in Geneva and Bellegard
and the Geneva International Airport (see below).
A technological centre :
Pays de Gex is home to the CERN facilities and researchers (European Particle Physics
Laboratory). In addition to collaboration and technology transfer opportunities offered to
businesses by CERN, it is also one of the main Internet access points in Europe. The Saint-
Genis Pouilly Technopark therefore offers the chance to benefit from the best communication
speeds thanks to its fibre optic network connected to CERN.
An international business centre :
Pays de Gex companies mainly belong to the service and commercial sectors. As proof of
the regional development, construction companies are also well represented.
With an unemployment rate among the lowest in France and an ever increasing population.
The Pays de Gex urban community is expanding two Technoparks with excellent installation
and development conditions.
Technopark - St-Genis site :
At the heart of the Pays de Gex, the Saint-Genis-Pouilly site of the Pays de Gex Technopark
combines the advantages of an ideal location on a European scale, a fibre optic network
with direct connection to one of the largest Internet exchange points in the world (CIXP)
and a customs-free zone encouraging exchanges towards non-European Union countries.
It also is ideal for establishing excellent relations with CERN (European Particle Physics
Laboratory) and its pool of technologies and knowledge.
The Saint-Genis-Pouilly Technopark is home to over eighty companies and several major
names such as ST Microélectronics, Air Liquide, Spie and Thalès.
Economic situation
The Collonges site for the Pays de Gex Technopark - well located on the outskirts of the
Pays de Gex and linked to its dual carriageway, close to the A40 motorway and the
Bellegarde Bassin as well as Haute Savoie - offers particularly favourable conditions for
light industrial, service sector and some craft activities.
6 km away, Geneva and its canton :
The Geneva region is an international business centre that is second to none. The presence
of the United Nations's European headquarters and of numerous non-governmental
organisations, plus the many expatriates involved in the private sector and living in the
region, puts the Pays de Gex right in the heart of a cross-border and multi-cultural combination
of over one hundred nationalities.
Geneva Airport :
• Over 8 million passengers pass through every year, along with 160,000 movements and
56,000 tonnes of goods
• About forty airlines operating over 1,000 flights per week and a hundred or so charter
companies
• A shopping center with over 60 boutiques and services open seven days a week
6,500 work stations on the site divided between 150 bodies and independent companies
• A global impact of 24,000 jobs.
The résidence “Voltaire Palace”
The residence has a total of 125 apartments/rooms of on average 24 m2, with the possibility of
making one big room of 48 m2 in joining 2 appartments.
The residence has been totally renovated. Numerous seminar/reception rooms are available to a
very international clientele of businessmen and private and public sector companies nearby.
The Geneva Exhibition Centre is very close. Many events are organised here throughout the year
(including the Motor Show), thereby creating demand for accommodation that always exceeds
availability.
The clientele matches with the quality of the construction and the town's geographical and economic
situation. Employees or consultants from major international institutions (UN, Internal Labour
Office, International Red Cross, European Nuclear Research Centre, etc.) or employees from companies
in the area - on average salaries are 30 to 40% higher than French incomes of equal qualifications.
The Swiss border less than 2 km away and Geneva International Airport siphon off a significant
number of "international" employees.
Bus:
• TER from Bellegarde or Divonne
• Line F from Geneva or Gex
• Geneva Cornavin and Geneva bus stations
Description :
Luxury residential hotel with 125 apartments (bedroom, studio, P2) sets in gardens with
swimming pool, terrace and car park at the gateway to Geneva. The ideal location for
the businessmen and tourists, for seminars and banquets.
11-year commercial lease and eleven months time due.
LMNP Non Professional Furnished Rentals
AN EASILY ACCESSIBLE STATUS
• The investment must be made on furnished accommodation for rental.
• There is no registration required with the RCS (Commercial and company register)
• Rental revenues must be declared as BIC (Industrial and Commercial Profits)
COMPATIBLE WITH VAT RECOVERY if, and only if:
• The accommodation is within a registered tourism or service residence
• The investor signs a commercial lease of at least nine years with a management company offering at
least three out of the four following services: reception and wardens, maintenance of private areas,
breakfast, supply of household linen.
• Rental payments are subject to VAT at 5.5%.
The VAT recovery procedure is triggered when the investor can justify reception of 3 months' rent. After
a further 3 to 6 months the tax authorities will return a cheque that investors can use for:
• Their pleasure
• Refunding loan payments
• Adding to the capital contact within the framework of an IN FINE loan
ENABLING INVESTORS TO GENERATE TAX FREE REVENUES
Every year instead of paying tax on the full amount of rental payments received, investors may deduct
the following from their rental income (BIC):
• Loan interest
• Co-ownership charges
• Furnishings depreciation (generally spread over five years)
• Building depreciation (generally over thirty years)
These sums are deducted from the revenues and reduce the tax payable on rental income to zero. If the
amount deductible is higher than the amount of tax payable (rental income - deductions = zero), the difference
(BIC deficit) can be carried forward for up to 5 years and used against any profits made in this
period. In loss making periods depreciation is not deductible but carried forward against revenues from
profit making years.
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