Depending on the property and possibly the area, the laws on buying and selling property in France can vary. If you wish to buy, refurbish the property and sell again as a way of earning an income, be careful. The French capital gains tax is chargeable on all second home sales owned for less than two years at a rate of 33%, with a sliding scale reduction on profit percentages over a 20 years period.

Once you have found your property, and an agreement on price is reached by both buyer and seller, a solicitor or notary will draw up a legally binding contract which both parties would sign.

Normally a 10% deposit would be paid at this point (which would be held in a secure account until the completion). The property would be withdrawn from the market and the legal system would commence its checks etc. At this stage if you were to back out of the contract you would lose your deposit.

Normally the final contract would be signed by both parties at the Notary’s office and at this stage the deeds would pass to the buyer and the land registry updated. The balance of the purchase price would be paid to the Notary who will then pay the vendor. You will need to provide the Notary with a copy of your birth certificate translated into French and, if applicable, a copy of a Marriage Certificate, also translated.

We recommend that you enlist the services of an agent in the purchase of your French property, preferably one who speaks English. This will help to protect your interests in the purchasing procedure. This will be in addition to needing a Notary who is mandatory for property purchases. If you use the services of the Notary who is handling the sale for the sellers, you will normally get a reduction in the fees charged. This is simply because there are not two offices involved with paperwork to go backwards and forwards between them.

Expect to pay around 10-15% on top of the selling price; the Notary fee around 3%, transfer tax 7.5% (less than 1% for new properties) and registration fees around another 6%.

Property taxes are levied on the property, plus a residential tax for living as an owner occupier or as a tenant (renting or not). Both are calculated on the average property rental values. These are known as Tax D'habitation and Tax Fonciere.

Mortgages are available from the usual sources and normal lending criteria will allow you to borrow up to 80% from French banks or international mortgage brokers and should be declared at the time of the preliminary agreement at the estate agents. The normal repayment term can vary between 15 - 25 years depending on the lender.

This guide is not meant to represent a full guide on buying property in France but is shown to give you an insight to the procedures to follow. It in no way constitutes a legal document or agreement and should only be used as a general guide. Properties for sale in France, accepts no liability for anything done or not done as a result of reading this website.

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