5.5% VAT for new homes bought under the 'Pass-foncier' scheme

Article 33 of the 2007 amending finance law applied the reduced 5.5% VAT rate to new homes intended as the main residence of first-time buyers who acquire the land at a later date (building lease), when they receive social home-ownership support from a local authority and meet the income ceilings of the lease-purchase scheme. The reduced rate also applies to the sale of the land or of the building lease right.