Notaire fees and taxes when buying French property

The advertised price is never the whole bill. France adds a set of costs on top of the purchase, most of them taxes rather than professional fees, and there are annual taxes to plan for once you own. None of it is hidden, but it is easy to underestimate. Here is what to expect.

The "notaire fees", explained

In France the closing costs are bundled together and called frais de notaire, which is misleading, because the notaire keeps only a small part. For an existing property, budget about 7 to 8 percent of the price. The large share of that is transfer tax collected for the state and the local authorities. The notaire's own regulated fee is a modest slice on top, along with administrative costs.

For a new-build bought from a developer, the figure is much lower, around 2 to 3 percent, because the transaction is taxed differently.

What the notaire does for that

The notaire is a public officer, not a salesperson. They verify the title, check for planning issues and pre-emption rights, hold the funds securely, register the sale and make sure the deed is legally watertight. One notaire can act for both parties, but you can appoint your own at no extra cost, since the buyer and seller share a single fee. For a cross-border purchase, having a lawyer alongside the notaire to advise on your own position can be money well spent.

Annual taxes once you own

• Taxe foncière. A land and buildings tax paid by the owner every year. The amount depends on the property and the commune.
• Taxe d'habitation. This has been abolished for main residences, but second-home owners still pay it, and some popular communes apply a surcharge on second homes.

The wealth tax (IFI)

France taxes property wealth through the Impôt sur la Fortune Immobilière. If your net French property assets are worth more than 1.3 million euros, you fall within it, and the tax is then calculated on a sliding scale. For most Riviera purchases this is a live issue.

The key word is net. Debt secured on the property reduces the taxable value, which is why financing part of a purchase can lower the bill. We cover that in the guide to non-resident mortgages. How it applies to you depends on your worldwide situation and any tax treaty, so take advice.

When you sell: capital gains

If you sell later for a profit, France charges capital gains tax, with reliefs that grow the longer you have owned the property. The detail depends on your country of residence and the relevant tax treaty. It is worth understanding the exit before you enter, especially if you are buying as an investment rather than a long-term home.

A simple worked example

On a two million euro existing villa, plan for roughly 140,000 to 160,000 euros in notaire and acquisition fees, on top of the price. Add annual property taxes, and factor the wealth tax into your yearly running costs. Knowing this before you start means no unpleasant surprise at the notaire's office.

To run the numbers on your own budget, use our free buying cost calculator and IFI wealth tax calculator.

Frequently asked questions

This guide is general information, not tax or legal advice. Speak to a notaire, lawyer or tax adviser about your own circumstances.