When considering purchasing a property in France, it is crucial to account for the various expenses beyond the property’s price. Many prospective buyers underestimate these additional costs, which can significantly affect budget planning.

Understanding these costs will help ensure a smoother purchasing process and avoid unexpected financial strain.

Contents

• Notaires fees and taxes
• Estate agent fees
• VAT on new properties
• Legal fees
• Additional considerations

Careful planning can help you prepare for or even avoid purchase fees

Notaires fees and taxes

In France, buyers are liable for notaires fees and taxes, which typically amount to approximately 7-8% of the property price for existing properties. For new builds, these costs can be around 2-3%. This percentage includes crucial expenses such as stamp duty and transfer tax.

Stamp duty on existing properties varies slightly depending on the property’s location within the country, as France is divided into several administrative regions. Notaires fees are set according to a fixed scale established by the French government and are based on the cadastral value of the property.

It is important to note that if you are taking out a mortgage, additional notaires fees typically range from 0.5-1% of the mortgage amount, which also includes land registry taxes.

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Estate agent fees

If you are purchasing a property through an estate agent, be prepared to pay agency fees that generally range between 6-10% of the property price. This percentage is typically negotiable and can sometimes be halved depending on your agreement with the agent.

Many online property platforms, including our own, usually include these fees in their property listings. If the listing does not clarify this, be sure to verify the fee structure with your agent.

Understanding these fees upfront will help you budget effectively and avoid misunderstandings later in the process.

VAT on new properties

For buyers of new properties, a VAT (referred to as TVA in France) of 20% is applicable. This cost is significant when purchasing directly from a developer and should be factored into your overall budget as it is often included in the final sale price as “TTC” (Toutes Taxes Comprises).

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Legal fees

Legal fees in France are not standardised and will depend largely on the complexity of the transaction and the lawyer’s rates. On average, the typical home purchase process will require around 20 to 25 hours of a lawyer’s time. Lawyers may charge by the hour, and their rates can vary based on their level of expertise and the nature of the work involved.

For a more accurate cost assessment, it is advisable to consult with a French property lawyer who can evaluate your specific needs and provide a detailed quote. Be prepared that an initial consultation may incur a fee.

Additional considerations

Survey costs

Although not mandatory, conducting a building survey can be beneficial to assess the condition of the property. The cost of these surveys varies depending on the company you choose but should be included in your budgeting considerations.

Currency exchange rates are constantly changing, shifted by world events

Currency exchange

For international buyers, currency exchange can greatly impact the total cost of property acquisition, especially if your home currency differs from euros. The period between signing the Compromis de Vente and the Acte de Vente (often spanning two to three months) is critical, as fluctuations in exchange rates during this time can substantially alter the total amount you pay.

Working with a currency exchange specialist, like Smart Currency Exchange, experienced in international property transactions can provide you with better rates and safeguard against market volatility, allowing for more effective budgeting. These specialists offer services such as locking in exchange rates or providing automated alerts when favourable rates are achieved.

Being informed about the various costs of buying property in France will enhance your purchasing experience and help manage expectations throughout the process. By planning ahead and understanding financial implications, you can secure your dream property with confidence.