Buyers’ FAQs for France
What are the costs when purchasing a property in France?
There are slightly different costs for purchasing a property in France, depending on the type of property you are purchasing.Read More
How long does it take to buy a property in France?
It will usually take around 2-4 months to buy a property in France. This accounts for the period between signing the preliminary contract and the Final Deed.
What is the purchase process when buying a property in France?
When purchasing a property in France, there are some steps you will need to take.Read More
What is the role of the agent?
When buying a property in France, choosing the right agent can make the process much easier from start to finish.Read More
What construction guarantees are there when buying off plan?
The VEFA contract lays out the guarantees that are offered by the building company. You should receive a 2-year guarantee for all fixtures and fittings and a 1-year guarantee to repair any snags once you have the keys to the property. A 10-year guarantee should also be provided to cover any structural repairs that need to be attended to.Read More
How much can I borrow from a French bank?
You can borrow up to 85% of the purchased price for a freehold property. EU citizens can borrow up to 80% for leasehold. If you are a non-EU citizen (which applies to UK buyers) the maximum is 70%.Read More
What are the interest rates on French mortgages?
As with all lenders, French mortgage interest rates continually change, depending on the wider economic situation. There is a wide range of mortgage types available.Read More
How long are French mortgages?
The majority of French mortgages usually last between 15-25 years, although you may be able to secure a longer repayment period depending on the lender and your circumstances.
What types of mortgages are available in France?
Typical mortgage types you’ll find in France include: Variable rate Fixed rate Capped rate Capital repayment Interest only
Rental Investment Opportunities
How do I rent out my property in France?
To rent out your property in France you must first inform the local town hall, before applying for a non-professional Siret number which proves you are officially registered to rent your property. You can then contact a reputable agent who can help you market the property and find suitable tenants. Any rent income you receive will incur taxes that must be paid every year.Read More
How often can I use my rental property myself?
If you buy a leaseback property, you will have a rental obligation attached to your property and will be limited in the amount of time you can spend in your apartment each year.Read More
Is France a good place to invest in property?
France has a thriving property market and with the right investment, property owners can enjoy stable, long-term yields on their properties.Read More
Has France’s economy recovered from the COVID-19 pandemic?
France enjoyed a strong recovery from the COVID-19 pandemic, growing 7% in 2021 and virtually erasing the economic crisis faced by the country a year earlier. Historically, France has one of the strongest economies in the world and can provide a lot of interesting opportunities for property investors.Read More
Buying a property in a Company Name
Can I purchase a property in a company name in France?
There are no restrictions on buying a property in a company name in France. An SCI (‘société civile immobilière’) is the most common method used, but it is advised to speak with a reputable agent who can help choose the right option from the likes of EURLs, SARL and SARL de famille.Read More
What are the costs?
Costs vary but, for example, you can expect to pay around 1,000€ for an SCI, along with an 800€ maintenance fee every year.
Are there benefits to buying a property in a company name?
Buying a property in France in a company name is tax efficient, giving you a 10% reduction in the taxable amount of the property for Inheritance Tax (if you plan to transfer ownership) and Wealth Tax. You can transfer ownership tax fee by transferring shares and you must have at least 2 business partners to purchase the property.Read More
How much local property tax do I need to pay in France?
Local property taxes in France require you to pay ‘taxe d’habitation’ and ‘taxe foncière’ which are both due around October/November. These are based on the property’s cadastral value and differ depending on the region it is located in.Read More
How much rental income tax am I liable for?
If you are non-resident you can expect to pay a flat rate of 20% on your property income. However, there are some deductions to be consideredRead More
Can I reclaim the VAT by renting my property in France?
VAT refunds are available, although only under certain conditions. For example, you can reclaim the 20% VAT on the price of a new-build property if you sign up to a professional rental management service.Read More
How much is capital gains tax?
Capital gains tax in France stands at a flat rate of 19%, with social changes applied at a flat rate of 17.2%, which equals a total of 36.2%. However, a reduced social change rate is available for EU and UK residents and after 22 years of ownership your property will no longer be subject to capital gains tax. Between 6 and 21 years of ownership, a progressive allowance increasing by 6% each is allowed, capped at 96%.Read More
Are there any further taxes I need to be aware of?
Wealth tax is another tax to be aware of, although non-residents in France only need to pay this on physical assets rather than financial investments. When net real estate wealth exceeds 1.3 million euros, tax is then payable and is applied on net assets above 800,000€. As an example, if you borrowed 80% to purchase the property and it is valued at more than 4 million euros, tax will be payable if the equity is more than 800,000€.Read More
Applying for residency
Can I become a resident in France?
You can become a resident in France if you want to stay in your property for more than 90 days a year. This requires you to apply for a visa/residency and after 10 years you can apply to become a citizen. Depending on the level of investment you have made, this could be shorted to 5 years.Read More
How long can I stay in France for?
For UK citizens, once you have purchased a property you can stay in the country for a maximum of 90 days within a 180-day period. You will need to apply for a long-term visa if you wish to stay for longer.Read More
Can foreigners buy a property in France?
There are no restrictions on foreigners who want to buy property in France, even if you are not a resident. Once you become the owner, you can rent it out to holidaymakers or set-up long-term tenancies. You will have to pay the taxes associated with owning the property, including paying tax on any rental income you earn.Read More
Can UK Citizens buy property in France?
UK citizens can buy property in France without any restrictions. This means you can buy a second home in France that you can used for up to 90 days within any 180-day period. You can then rent the property out as you please to earn extra income on your investment.Read More
Are there any restrictions on selling my property?
There are no restrictions in place that will affect how or when you sell your property in France.Read More
What are the different types of property in France?
There are three main property types in France to choose from. Find out everything you need to know about the different types.Read More