French Alps Property Investment 2025: The Complete Insider's Guide
Introduction
The French Alps property market in 2025 is having a quiet shift happening behind the scenes: towns closing their doors to second-home construction, strict planning laws tightening across the region, and a deepening supply crunch that’s rewriting the rules for investors. At the same time, a post-COVID shift in how people live, travel, and holiday is expanding the Alpine season.
Whether you're a seasoned investor or simply Alpine-curious, this insider’s guide will walk you through the changes redefining the region. From where you can still build (and where you now can’t), to the unexpected tax strategies that can unlock serious savings.
Market Trends
The Supply Crisis: Chamonix's New Build Laws
The most significant development reshaping the French Alps property market isn't a new luxury resort or infrastructure project, but rather what is being banned. Chamonix, one of the world's most renowned ski resorts, has completely shifted its approach to property development.
"Chamonix has just completely changed their rules, and they have now forbidden any future residences destined for tourists or secondary residences," reveals Charlie Williams, Alpine Property Finders' French Alps expert ."Any new building permits have to be either for hotels or purely residences for locals who are living there all year round."
This significant policy change goes beyond merely imposing local planning restrictions; it effectively removes all future investment opportunities in one of the most prestigious destinations in the Alps. For investors, this creates an intriguing paradox: while existing properties in Chamonix are becoming increasingly scarce and valuable, new investment opportunities have effectively disappeared overnight.
The Broader Planning in The French Alps
Chamonix's decision isn't happening in isolation. Across the French Alps, a perfect storm of planning restrictions is fundamentally constraining future supply in ways that make traditional real estate cycles almost irrelevant.
"All the town halls are restricting their planning regulations and are issuing fewer building permits," explains Charlie. "There's obviously a lot less land available than there used to be - most land opportunities have been taken so new property tends to come mostly from the redevelopment of existing and potentially ageing buildings ."
The constraints are both geological and regulatory:
Geological Limitations:
- Unbuildable zones, including cliffs and avalanche zones
- Protected farmland where building is simply not permitted
- Maximum buildable heights that cannot be exceeded
Regulatory Restrictions:
- Increased housing requirements for local workers
- Reduced viability for property development companies
- Projects are no longer economically feasible under the new constraints
Perhaps the most misunderstood aspect of current French Alps planning policy is the social housing requirement, which differs dramatically from traditional concepts of social housing.
"A lot of the town halls are imposing social housing requirements - not social housing as we would think of in the UK for the unemployed, it's social housing for the local workers and people that are living there all year round," clarifies Charlie.
The unintended consequence has been devastating for new supply: "Unfortunately, it doesn't make the projects viable for property development companies. So we're seeing less and less new projects coming to market."
The Summer Revolution: How COVID Changed Everything
The Occupancy Explosion
Perhaps no single factor has transformed the French Alps investment landscape more dramatically than the post-COVID summer boom. What began as a pandemic-driven shift in travel patterns has evolved into a permanent transformation of Alpine tourism dynamics.
"The largest trend over the last five to 10 years has been the increase in summer activity and people coming to stay in the Alps in the summer, especially since COVID," notes Charlie.
"People were suddenly not able to take long-haul flights and maybe jumped in the car and drove up into the mountains during the summer during 2020, realised that the Alps were such an amazing place to be during the summer as well."
The numbers tell an extraordinary story of transformation. Take Châtel as an example: "A resort like Châtel, for example, was running at 40 to 50% in the summer following COVID, it spiked up to 90% in August."
"Year on year since 2015, the number of overnight stays in the French Alps has been increasing non-stop."
For a deeper look at these trends, including data, case studies, and key resort comparisons, download our full Alpine Summer Report 2025.
Infrastructure Responds to Demand
The tourism infrastructure has rapidly adapted to capitalise on this summer boom, with lift companies dramatically extending their operating seasons to capture the new demand.
"We can see that the lift opening times are widening year on year," explains Charlie. "So in the Portes du Soleil, for example, which hosts 650 kilometers of pistes over 12 interlinked resorts very near to Geneva. Whereas the lifts in 2010 would be open during the summer just for the main six weeks of school holidays, now with the draw of the bike parks, we're seeing the lifts open from middle of May, and not shutting until the middle of September."
This seasonal extension represents a fundamental shift in the investment proposition. Properties that were once generating income for just 12-14 weeks annually are now producing returns across 20+ weeks, dramatically improving rental yields and property valuations.
The Wellness and Adventure Economy
The summer transformation extends far beyond simple season extension - it represents the emergence of an entirely new economic ecosystem centred on wellness and adventure tourism.
Mountain Biking Revolution:
"Mountain biking has had a huge impact as well. Companies like Santa Cruz, based in California, are opening up shops in warehouses in resorts like Morzine. The boom in e-biking also allows people of all ages to whizz up and down the mountain which much greater ease than before"
Championship Events:
"You have the mountain biking World Championships, road racing world championships in the area several times every year now as well, and with it, a huge influx of people."
Golf Course Development:
"There are now over 30 golf courses in the French Alps as well." If you’re interested in how golf is becoming a key part of the summer experience don’t miss our full write-up: Our Guide to Teeing Off in the Alps.
This diversification creates multiple revenue streams and demographic targets, fundamentally changing the investment math for Alpine properties.
New Developments: Capitalising on Supply Constraints
Les Houches: The Chamonix Valley Alternative
With Chamonix's complete ban on tourist residences, neighbouring Les Houches has emerged as the premier alternative for investors seeking access to the legendary Chamonix Valley.
"Due to new building restrictions in Chamonix, Les Houches is becoming an increasingly appealing location for buyers looking to invest in France's Chamonix Valley," explains Charlie. Our new development offers 15 apartments and penthouses with breathtaking views of the entire Chamonix valley, from the iconic Aiguille du Midi to the majestic Aiguille Verte.
The location provides the perfect balance of accessibility and exclusivity: just 700m from the Prarion gondola for world-class skiing access, yet positioned in a peaceful, sunny setting. With delivery expected in Q4 2027, these properties come with no rental obligation, providing complete freedom for owners.
"This represents exactly the type of opportunity that's emerging from the supply constraints," notes Charlie. "When premier destinations like Chamonix close their doors to new development, adjacent areas with similar access and views become extraordinarily valuable."
Les Houches Apartments, Chamonix - Prices From € 653,000
Genesis Diya: Tignes' Ski-In, Ski-Out Apartments
"Situated at 2,000m, Genesis occupies a prime ski-in ski-out location and involves an entire regeneration of the Le Lavachet area of Tignes," explains Charlie. The development, due for completion in Q4 2026, features comprehensive 5-star hotel facilities including year-round reception, optional rental management, swimming pool, sauna, steam room, hot tub, and fitness room.
The strategic positioning in one of Europe's highest and most snow-sure skiing areas provides exceptional investment security. "Close to Val d'Isère, Tignes is part of the world-renowned Espace Killy ski region which has some of the highest and most snow-sure skiing in Europe, as well as some of the Alps’ best restaurants, both on-mountain and in-resort," notes Charlie.
Genesis Diya, Tignes - Prices From € 845,000
Chalet Villarabout: Three Valleys Luxury
This recently completed chalet in the charming hamlet of Villarabout, just outside Saint-Martin de Belleville, exemplifies the new-build tax advantages available to savvy investors.
"The chalet offers far-reaching views and is just a 2-minute drive from direct access up into the vast 3-Valleys ski region," explains Charlie. With 5 bedrooms across 234m² of living space, the property includes an 83m² open-plan living area, fireplace, 21m² west-facing terrace, sauna, gym, and ski room.
The new-build status provides immediate financial advantages: "As the chalet is newly-built, the notary fees are reduced to 2% and you have the opportunity to reclaim the French VAT from the purchase price, saving you an additional 20%," notes Charlie.
Chalet Villarabout, Saint Martin de Belleville - Price € 3,750,000
L'Héritage: Morzine's Boutique Excellence
In the heart of Morzine, L'Héritage represents a rare opportunity to secure modern alpine living with direct access to the Portes Du Soleil's 650km of pistes.
"Just 100m from the Pleney slopes and lifts with access to the Portes Du Soleil ski domain, these stunning new-build properties are due for delivery in Q4 2027," explains Charlie. The boutique residence features high-end apartments and penthouses ranging from 2 to 5 bedrooms, with the unique advantage of pre-construction customisation.
"Since these apartments are being sold off-plan, owners are able to work with the interior design team and architect to adapt the floor plans and interiors to their very own specification," notes Charlie. The development includes thoughtfully designed architecture reflecting local alpine traditions, with beautiful outdoor areas and hanging gardens for top-floor units.
The location provides unparalleled convenience: "Everything Morzine has to offer is within easy walking distance: the Pleney snow front, ESF ski school, beginner slopes, and the Super Morzine gondola," explains Charlie.
L'Héritage Apartments, Morzine - Prices From € 536,000
Tax Optimisation: The Hidden Advantages
The VAT Reclaim Strategy
Perhaps the most powerful yet least understood tax advantage in French Alps property investment is the VAT reclaim opportunity for new build properties.
"If you're buying a new build, you're able to reclaim the 20% VAT from the property purchase price," explains Charlie. The criteria are specific but achievable:
Requirements for VAT Reclaim:
- Must be a new build property
- Rented furnished on short-term lets
- Minimum of three para-hotelier services in place (cleaning, laundry, and key holding)
What You Can Reclaim 20% VAT On:
- Property purchase price
- Rental services you're paying for
- Furniture of the property
"The proviso is that you then also need to pay the lower level of 10% VAT on the rental income," notes Charlie. For many investors, this trade-off is extraordinarily favourable, providing immediate capital return while maintaining strong ongoing cash flow.
Depreciation and Offset Strategies
The French tax system offers sophisticated depreciation schedules that can effectively eliminate rental income tax for extended periods.
"We are obviously not qualified to give taxation advice and the following doesn’t consist of advice, we will introduce you to the professionals for that. However at a high level buyers can offset a whole host of things against rental income in France," explains Charlie:
Deductible Expenses:
- Mortgage interest
- Management costs
- Accountancy fees
- One inspection trip to the property per year
Depreciation Schedules:
- Approx 80% of property value over 25-30 years (approx 20% is classed as land)
- Notary fees over three years
- 100% of furniture over 10 years
"When you add all that up, there would be limited to no tax to pay on the rental income in France for many years
Company Structure Optimisation
For higher-value investments, company structures can provide additional tax optimization opportunities.
"If the purchase price is over €1 to €1.5 million, it starts to make sense to hold the property within a company," advises Charlie. "If you're planning on renting and getting the VAT back, that tends to be an SARL which is a transparent structure allowing you to take funds out. You can appoint shares to those over 18 years of age, and that helps navigate inheritance tax as well as wealth tax."
Wealth Tax Optimisation Through Financing
One of the most elegant tax optimisation strategies involves using mortgage financing to reduce equity in a property and remain below wealth tax thresholds.
"If you're above the €1.3 million of equity in the property and therefore liable to start paying wealth tax, another way of helping optimise that is taking a mortgage," explains Charlie. "Because if you, for example, buy a property at €2 million, and you take a mortgage of €800,000, it drops your equity under the €1.3 million mark, and there's no wealth tax to pay."
Capital Gains Tax Advantages
The French system particularly favours long-term property ownership through its capital gains tax structure.
"The French system favours the long hold. So the longer you own the property in France, the less capital gains tax you'll pay," notes Charlie. "There are actually two; one is a social charge, and one is a capital gains tax, which totals approximately 36%. One decreases from year six of ownership down to 0% at year 20, and one decreases from the full amount at year six down to 0% at year 30."
Financing Opportunities for International Buyers
The French Private Finance Advantage
Understanding mortgage accessibility for international buyers requires specialised expertise, which is why Charlie established French Private Finance in 2007.
"We set up our in-house French mortgage brokerage called French Private Finance in 2007, which is in touch with all of the French banks that will lend to non-residents," explains Charlie.
Nationality-Based Loan-to-Value Ratios
French banks take a sophisticated approach to international lending, with loan-to-value ratios varying significantly by nationality and tax residency.
"The French banks, whilst they do look at your nationality and where you reside, of more importance to them is the country that you pay tax in. Different nationalities will be able to attain different loan to values."
Current LTV Ratios by Nationality:
- British: 70-85% loan-to-value is common
- EU Citizens: Similar to British at 70-85%
- US Citizens: 50%, up to 75% in some cases
- Southeast Asia (Hong Kong, Singapore): Around 60%
- UAE: Around 50-60%
- Other Countries: Assessed on a case-by-case basis
Purchase Costs and Ongoing Expenses
Transaction Costs
Understanding the full cost structure is crucial for investment planning, with significant differences between new build and existing properties.
New Build/Off-Plan Properties: "If you're buying an off-plan or new build property, you pay the lower level of notary fees and stamp duty, which will be between approximately 1.9% to 2.5% depending on the price of the property."
Existing Properties: "If you're buying an existing property, you pay it at the normal rate of 7.5% of the notary fees and stamp duty."
Legal Process Differences
The purchasing process varies depending on property type, with different risk and payment profiles.
New Build Process: "If you're buying a new build, then you go through a stage of reservation contracts, and then onto signature of the deeds (normally when there's transfer of ownership, even before the property is built), and then you enter a stage payment process until completion of the property."
Existing Property Process: "If you're buying an existing property, you would sign a compromis de vente, and it's much simpler - 10% on exchange, and then 90% on completion."
The Infrastructure Investment Cycle
Unlike many property markets driven primarily by speculation, the French Alps benefit from substantial, long-term infrastructure investment that provides fundamental support for property values.
The combination of extended lift seasons, new adventure tourism infrastructure, and improved accessibility creates multiple value drivers that compound over time rather than compete with each other.
Banking and Account Requirements
French Bank Account Considerations
While not legally required, practical considerations often make French bank accounts advisable for property owners.
"You don't need a French bank account to buy property - it's not a legal requirement. However, we'd normally advise that it's a good idea to set one up," explains Charlie.
Practical Benefits:
- All bills come out in euros
- Rental income received in euros
- Avoids exchange rate fluctuation
- Simplifies property management
Account Setup Options: "Most banks require you to go to France to set up the account. However, we do work with one that allows you to do it remotely, so we can help you there as well through French Private Finance."
Conclusion
The evidence is overwhelming: the French Alps property market is experiencing a once-in-a-generation transformation. Supply constraints are tightening across premier resorts, international demand is diversifying and intensifying, and infrastructure investments are extending seasons and improving accessibility.
The combination of favourable financing conditions (70-85% LTV for many nationalities), sophisticated tax optimisation opportunities (VAT reclaim, depreciation schedules, wealth tax avoidance), and fundamental supply-demand imbalances creates compelling investment conditions.
For more information about current opportunities in the French Alps property market and tax optimisation strategies, contact Alpine Property Finders.
