Yes - foreign buyers can buy property in France. The French property market is open to buyers from most of the world. There are no restrictions for non-EU buyers. 

The legal process is fairly straightforward when you are buying a property in France. The process is however a little different depending if you are buying a new build property or an existing 'resale' property.

If you're buying new build property, you will first sign an initial reservation contract. After that you will sign the official deeds and the transfer of ownership can then be completed. This is often at the beginning of the build process and often before the property is built.

After that, you will enter into a stage payment process until completion of the property.

If you're buying an existing property, you would sign a "compromis de vente". Typically you will pay 10% on exchange and then 90% on completion.

No, you don't. It's not a legal requirement to open a bank account in France. 

However, if you do not currently have a bank account in the EU, we would normally advise that it's a good idea to set one up since all of your bills are going to be coming out in euros.

If you are renting out the property, you will have income coming in euros, so it's best to have everything coming into one account in euros. This avoids any exchange rate fluctuation.

Most banks require you to go to France to set up the account. However, we do work with one that allows you to do it remotely.

If you're buying an off-plan or new build property, you pay the lower level of notary fees and stamp duty. This is typically 1.9% to 2.5% depending on the price of the property.

If you're buying an existing property, you pay the normal rate of 7.5% for notary fees and stamp duty.

Rental Income Tax: You have to pay tax on rental income if you're renting a property in France. However, it is possible to offset plenty of costs in order to reduce the taxable income. These include:

• Mortgage interest

• Management costs

• Accountancy fees

• One inspection trip to the property per year

• You can depreciate 80% of the property over 25-30 years. 20% is classed as land and therefore can't be depreciated. 

• Notary fees over three years

• 100% of the furniture over 10 years

When this is all added up, there is often limited to no tax to pay on the rental income in France for the first few years. 

Capital Gains Tax: You're liable for capital gains tax. The French system favours long-term holding. The longer you own the property in France, the less capital gains tax you'll pay. There are actually two components - one is a social charge and one is capital gains tax, which total approximately 36%. One decreases from year six of ownership down to 0% at year 20, and one decreases from the full amount at year six down to 0% at year 30.

Wealth Tax: This is payable, but only over €1.3 million of equity in the property. Under that threshold, you're not paying any wealth tax.

Inheritance Tax: There's inheritance tax to pay as well, although owners have a threshold of €100,000 per parent per child (so €400,000) before any inheritance tax is payable.

Yes, you can. We work with a specialist French mortgage brokerage which is in touch with all the French banks who will lend to non-residents.

The French banks, whilst they do look at your nationality and where you reside, more importantly, look at the country where you pay tax. Different nationalities will be able to attain different loan-to-value ratios:

• British/EU: 70-85% loan-to-value is common

• US: Normally up to around 50% loan-to-value at the moment

• Southeast Asia (Hong Kong, Singapore): Around 60%

• UAE: Around 50-60%

• Other countries: We need to look at on a case-by-case basis

Benefits of buying a new build property:

• You will pay the lower level of notary fees and stamp duty of only around 2%

• You're able to reclaim 20% VAT from the property purchase price if you are agree to commercially rent out the property.

VAT Reclaim Criteria:

• Must be a new build apartment or chalet

• The property must be rented furnished on short-term lets

• You or your rental agency must provide a minimum of three para-hotelier services in place (cleaning, laundry, and key holding for example)

If you fulfill these criteria, you can reclaim 20% VAT on:

• Property purchase price

• Rental services you're paying for

• Furniture of the property

The proviso is that you then need to pay the lower level of 10% VAT on the rental income.

Company Structure: If the purchase price is over €1-1.5 million, it can make sense to hold the property within a company. 

If you're planning on renting and getting the VAT back it tends to be an SARL or similar structure. This means you can then appoint shares to those over 18 years of age and also helps with inheritance tax as well as wealth tax planning. 

Wealth Tax Optimisation: If you are purchasing a property above the €1.3 million wealth tax then it often makes sense to take out a mortgage in France. 

For example, if you buy a property for €2 million and take a mortgage of €800,000, your equity drops to €1.2m and there is therefore no wealth tax to pay.