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To buy property in France |
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Buying a home in France
 Purchasing a home in France requires the aid of the Notary Public. The Notary Public's main purpose is to ensure that all taxes are paid during a real estate transaction and that the sale is registered in the land registry. Furthermore, buyer and seller usually employ the services of solicitors to safeguard their interests.
The buying process
When buyer and seller reach an agreement it is done by verbal settlement. This settlement is not legally binding but becomes the basis for developing a written contract. When this contract is signed by the involved parties a downpayment is payed, usually around 10%. By law follows a seven day period during which the buyer may withdraw from the contract.
Subsequent to this, there is a period of 3 months during which the buyer's solicitor examines all legal and financial aspects of the property. There are many special rules in France and it is of importance to discuss these with the solicitor. Thereafter, the final payment takes place. Taxes and fees are settled through the Notary Public. The buyer must present to the Notary Public a birth certificate translated into French. At this time, the real estate agent is also payed.
Costs
The most important expenses:
Value added tax: this tax has to be paid if the property has been built within the last five years prior to the property purchase.
Stamp duty: 0.6%
Transfer taxes: these taxes vary and are payed to different authorities, for example provincial tax 4.2%, community tax 1.2% and regional tax 1.2%.
Fees for the Notary Public and the solicitor: these fees are shared by the solicitors and are about 5% up to €3,000 of the sales price and thereafter about 0.8% up to €16,750.
Land registration fee: 0.1%
If a loan is taken out for the purchase: a further number of fees are added on.
Real estate agents fee: 5-10% of the sales value. This is normally payed by the seller unless something else has been agreed.
Please note: This information should only be seen as general guidance. Since laws, taxes and fees often change, a buyer must always inform himself of the latest rules and regulations.
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