Costs of buying property in France
When considering buying property in France, it’s essential to be aware of the various costs that will be incurred in addition to the property’s price.
Overall, you should budget between 8-10% of the property price for various mandatory fees on top of the property price.
Notaires’ fees and taxes
In France, the buyer is responsible for paying the notaires’ fees and taxes, which can amount to approximately 7-8% of the property’s price for existing properties (including stamp duty/transfer tax) or around 2-3% for new properties (including land registry taxes).
Stamp duty on existing properties does vary slightly depending on the department, which is a regional administrative and governing division, like a county council in the UK.
Notaires’ fees are calculated in accordance with a fixed fee scale set by the French Government, which is based on the cadastral value of the property.
Please note: If the buyer is taking out a mortgage (to be secured against the French property), there will be additional notaires’ fees of around 0.5-1% of the mortgage amount (to include land registry taxes/fees).
Estate agent fees
If you’re purchasing a property in France via an estate agent, you can expect to pay half of the agency fees of around 6-10% of the property price. However, most online property portals, such as Your Overseas Home and Rightmove, include these fees in the advertised price. If the listing does not include a note that these fees are included, make sure to clarify this with your agent.
VAT on new properties
For new properties, a VAT (TVA in France) of 20% is applicable.[i] This is a significant cost to consider when buying a brand-new property directly from a developer, however, you may be saving if not using an estate agent’s services. It should be included in the price as TTC (Toutes Taxes Comprises).
Legal fees
There is no fixed rate for legal fees in France and these are to be agreed with your independent property lawyer depending on the depth of work.
Each French firm that specialises in property law will have varying fees. On average, the standard purchase process will take a lawyer 20 to 25 hours and often can be calculated using the firm’s hourly rate. Please note that this fee will differ depending on the seniority of the lawyer involved and the depth of work.
However, for an accurate quote, please contact a French property lawyer who will be able to access your requirements and give you an idea of the costs involved.
It is not uncommon to pay for an initial consultation with a property lawyer in France.
Additional considerations
Survey costs
While not mandatory, a building survey can provide peace of mind about the property’s condition. The costs for these surveys vary depending on the firm you use but are an additional expense to consider.
Currency exchange
If you’re buying a French property from overseas and your home currency isn’t the euro, the price of the property itself can hugely vary without proper planning. The three-month period in between the signing of the Compromis de Vente and the Acte de Vente is when your property price is most exposed to the volatility of the currency market. If the rate moves, the price of your property in France can end up costing you a lot more than you budgeted for. Using a currency specialist with experience in international property transactions can offer better rates and protection against currency fluctuations.
[i] https://www.notaires.fr/en/housing-tax-system/financing/cost-buying-house-conveyancing-fees
Other: https://www.frenchentree.com/french-property/the-cost-of-buying-a-property-in-france/
