Buying property in France is about to become more expensive in many areas, as local councils gain the authority to increase the droits de mutation à titre onéreux (DMTO)—commonly known as part of notaire fees.

These charges are set to rise in several departments following budgetary changes in France’s 2025 financial plan. For many homes, these new fees will amount to more than €1,000.

For overseas buyers considering a move to France, it is essential to understand how these fees work, how they may impact your purchase, and what steps you can take to manage costs effectively.

The fees could amount to thousands of euros on valuable properties

What is changing?

The French government’s latest budget allows local councils to increase the DMTO from its current rate of 4.5% to 5%, subject to approval by the departmental council. Many councils are expected to adopt this increase, as they face funding shortfalls of around €2 billion.

Paris was the first to confirm the change, with Charente-Maritime, Essonne, and Ille-et-Vilaine following. Other departments are likely to announce similar changes in the coming months.

The increase translates to an additional €500 in tax per €100,000 spent

For buyers, this means higher costs when purchasing property in these areas. The increase translates to an additional €500 in tax per €100,000 spent, which can add a significant amount to high-value transactions.

However, first-time buyers may be exempt from the increase, depending on local policies.

It’s important to learn how these increased fees impact your plans

Understanding notaire fees

Although often referred to as notaire fees, these costs primarily consist of taxes collected by the local government. The total notaire fee on a property purchase is made up three components.

The largest, DMTO (transfer tax) varies by department and is now increasing in many areas.

Then there are the notary’s legal fees, which is a fixed fee that goes to the legal professional who handles the sale.

Then, finally, are a cluster of smaller fees for administrative costs, such as document registration and mortgage-related paperwork.

For older properties, notaire fees typically range between 7% and 8% of the purchase price. For new-build properties, these costs are much lower, around 3%.

New build properties typically have lower notary fees

What this means for overseas buyers

If you are purchasing a home in France for the first time, these changes highlight the importance of budgeting carefully and understanding all the associated costs. Here is what you can do to navigate the process smoothly:

Factor in higher fees when budgeting

Many overseas buyers focus on the property price alone, without fully considering the additional fees and taxes.

With the DMTO increase, ensure you include this cost in your overall budget, especially if you are buying in one of the affected departments.

Consider a new-build property

If you want to reduce upfront costs, a new-build home may be a more cost-effective option.

Since notaire fees are significantly lower on new properties (around 3%), you could save thousands compared to purchasing an older home.

Time your purchase wisely

If you are close to finalising a property purchase, consider completing the transaction before 1 April in areas where the increase is confirmed. This could save you a considerable sum in transfer taxes.

Explore first-time buyer exemptions

Some departments may introduce exemptions or reduced rates for first-time buyers, especially those purchasing a primary residence. If you qualify, this could mitigate the impact of the fee increase.

Use a currency exchange specialist

With additional costs involved in buying property abroad, exchange rate fluctuations can have a major impact on your final expenses. Using a currency exchange service, like those offered by our partner, Smart Currency Exchange, can help lock in favourable rates and reduce uncertainty, ensuring you get the best value for your money when transferring large sums for deposits and final payments.

Seek professional guidance

Understanding the complexities of French property laws, taxes and fees can be challenging, especially for first-time overseas buyers. Consulting a notary, legal expert or property specialist with experience in French real estate can help you avoid costly mistakes and ensure a smooth purchase process.

We are partnered with many of the experts you’ll need when buying a property in France, so don’t hesitate to reach out to them.

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

As property fees rise in many French departments, it is more important than ever for overseas buyers to plan carefully.

While these changes will increase acquisition costs, there are ways to manage the impact, from choosing a new-build property to exploring first-time buyer benefits and securing a strong exchange rate.

By staying informed and working with the right professionals, you can successfully navigate the French property market and make a well-informed investment.