French Banks Offering 80% Mortgages For UAE Expats

French banks have recently started offering up to 80% mortgages for expats living in Dubai and Abu Dhabi, creating new possibilities for UK, EU and US expats living and working in Dubai or UAE looking to invest in property in France. If you’ve been considering purchasing a holiday home or diversifying your property portfolio, it's a significant change.

These tailored Loan-To-Value (LTV) ratios for both UK, EU and US expats in those locations come with the following ranges:

- UK & EU Expats: 50-80% LTV
- US Expats: 50-70% LTV

In addition to the latest LTV options, the European Central Bank (ECB) has recently announced it's reducing interest rates by 0.25% to 3.25%. This creates an opportune moment to secure a French mortgage with favourable terms, leading to lower monthly mortgage payments, making property investment highly attractive.
As for where to buy - popular regions with overseas buyers include:

- The French Alps: Known for high rental yields in the busy winter season, the French Alps attract strong demand during peak skiing months. Resorts like Tignes and Val d’Isère are also developing their summer season, transforming into year-round destinations and offering even more rental income potential throughout the year.
- The French Riviera: With guaranteed sunshine year-round, this glamorous coastal region continues to be a highly desirable rental market, providing consistently high occupancy rates in both peak and off-peak seasons.

Investors can also take advantage of the Para-Hotelier Scheme for attractive tax benefits:

- Reclaim 20% VAT on new-build property purchases when set up for short-term rentals for at least 20 years
- Offset 80% of the property’s purchase price as depreciation over 30 years, allowing for tax-free rental income