Leasebacks are fundamentally different from timeshares. With a timeshare you generally "own" a property with 25 other people in return for which you get your two weeks a year allocated for your personal use. The purpose and structure of owning is different from a leaseback.

Leasebacks are effectively a purchase from a development company and immediate lease back to a holiday company which may or may not be in the same group. You have full ownership rights over the entrie property, but have leased it to another party to use.

The lease is usually for 9 years plus a leaseholders option of another 9. The lease is a fully written legal document outlining the lease length and payment terms. The leaseholder is required to return the property back to you after the 18 years in the same condition in which they took it, although practically speaking this will be French for the "same condition", rather than Swiss!!

Income from the property can be two-fold: a percentage return (usually index linked so that the return increases commensurate with the property value or some other index), and also with a bonus of a couple of weeks a year (out of season though). With the big leaseback providers you can also get the choice of swapping your bonus weeks in your place with another one of their complexes, so you can have the choice of a wider range of "bonuses".

Beacuse the leaseback is for so long (typically 18 years) it's a long term investment only. Yes, the French Government give you the VAT back so it's possible to buy a place with very little down, but if you need to sell the place for whatever reason before the 18 years is up you will need to repay a portion of the VAT claim. Also, leaseback properties tend to be more expensive per sq foot than other similar properties.

You'll need to register with the French tax authorities and pay all taxes there, but as with any property investment your interest on gearing can offset any income. This should then be declared on your Swiss return (if you need to make one) and you should get an offset for any French tax paid through the normal double taxation treaty.

As with any investment, do your sums before committing. It's a long term thing so be sure you can tie your money up for that long. Different leasebacks offer different terms and returns so ensure the numbers make sense. If the principal of leaseback still sounds good, then investigate further with the larger companies as you want to be sure they will still be around in 18 years (not that you will lose the property - you retain ownership at all times - but if you lose income it may disrupt your planning). Larger comapnies have more choice of leasebacks and potentitla places to visit for your bonus as well. Pierre et Vacances and Odalys are two of the larger providers, check out some of their schemes for further info.