Buying property in France

Who can buy in France

There are no restrictions on buying property in France as a foreigner; however, non-citizens need to follow additional administrative steps.

Non-EU citizens planning to stay in France for more than 90 days but less than a year must apply for a long-stay visa. For stays longer than a year, you’ll need to apply for a residence permit.

The buying process in France

• Once you’ve identified the property you want to buy, submit a formal offer in writing, known as an ‘offre d’achat’.
• When the offer has been accepted, you’ll need to appoint a notary to handle the legal documents and act as an intermediary between buyer and seller.
•  The deposit is typically 10% of the purchase price and is held in escrow until both the seller and the buyer have signed a ‘compromis de vente’. This outlines the terms of the sale, such as purchase price and inspection clauses.
•  The ‘compromis de vente’ has a 10-day cooling-off period for the buyer, during which you can withdraw without penalty and receive a full refund of the deposit.
• Completion takes place at the notary’s office, and you’ll pay the purchase price balance, fees and taxes then.

Financing your property in France

When buying property in France, if you require a mortgage, having an ‘accord de principe’ in place outlines how much you can borrow from a lender. This puts you in a strong position as a buyer, increasing your chances of having your offer accepted.

Some sellers won’t accept a mortgage clause in the ‘compromis de vente’, so speaking to a mortgage broker early is crucial.

In some instances, it’s possible to borrow 100% of the property’s purchase price by combining a mortgage with a Lombard loan.

Fees and taxes in France

Property purchase fees typically amount to approximately 7.5% of the purchase price, although this percentage can vary.

• The French wealth tax starts at 0.5% for properties between €800,000 and €1.3 million, rising progressively to 1.5% for properties valued over €10 million.
• If you’re selling and the home is your main residence at the time of sale, you’re exempt from capital gains tax.
• For second homes and investment properties, capital gains taxes decrease with the length of ownership, becoming exempt after 22 years, to encourage long-term property investment.