FAQ PARIS
How does the purchasing process work in France?
Once you find a property you're interested in, the seller is legally required to provide the dossiers technique/diagnostique. These documents serve as the property inspection and include:
Size of the property
Presence of hazards: Lead, asbestos, termites, or environmental risks, if any
Condition of utilities: Electricity and natural gas (if applicable)
Energy performance: Insulation quality, gas emissions, etc.
Règlement de copropriété: Building by-laws, including rental rules
Copropriété meeting notes (last 3 years): Records of decisions on maintenance or construction projects, including costs shared among owners
After reviewing these documents, you can make an offer. If the seller accepts, a notaire (notary) drafts a preliminary contract, either a promesse de vente (promise to sell) or a compromis de vente (contract of sale).
Promesse de vente: The seller is not legally committed to the sale, but the buyer can withdraw within 10 days without penalty.
Compromis de vente: Both parties are legally bound to proceed with the sale.
Once the preliminary contract is signed, the buyer typically pays a deposit of 10% or more.
The next phase is the closing period, which averages three months. During this time, the buyer secures financing, and the notaire handles title searches, legal matters, and administrative paperwork. At the end of this period, the acte de vente (final purchase agreement) is signed, completing the transaction.
What is a notaire ? What do they do?
Under French law, all property sales must be prepared and finalized by a notaire. A notaire is a public legal official, akin to a lawyer, who oversees property transactions to ensure they comply with French legal requirements. Their role is impartial, working to protect the interests of all parties involved in the transaction.
There can be one or two notaires involved in a property sale. While it's common for both the buyer and seller to share a notaire, it is often in the buyer’s best interest to have their own. The good news is that the total notaire fee is fixed by French law, so having two notaires does not increase the cost—it is split between them.
Responsibilities of a notaire:
Title verification: Confirms that all title and registry details correspond to the property being sold.
Identity checks: Verifies the identities of the buyer and seller to ensure the transaction is legitimate.
Mortgage and lien checks: Ensures there are no undisclosed mortgages, liens, or other encumbrances on the property.
Down payment and financing: Confirms that the down payment and financing are sufficient to cover the purchase price.
Planning compliance: Obtains a planning certificate (certificat d’urbanisme) from the local town hall to confirm the property complies with planning and zoning regulations.
Financial breakdown: Provides a comprehensive breakdown of costs, including broker fees, taxes, and notaire fees.
Legal documentation: Prepares and oversees the signing of all required contracts, including the preliminary contract and final purchase agreement.
Tax collection: Collects property taxes, transfer taxes, and other applicable fees on behalf of the French government.
Important Notes:
Language Barrier: Most documents will be in French. We work with bilingual notaires who can guide you through the process and answer questions in your preferred language.
Translations: Official translations can be purchased, but they are expensive. In some cases, unofficial summaries or translations may be enough for understanding the key details.
Buyer's Cost: While the seller typically pays for the notaire’s services in most other types of contracts, in property sales, the buyer covers the notaire fees, which range from 7–8% of the purchase price for older properties (lower for new builds).
Having a trusted notaire is essential for ensuring a smooth and legally compliant transaction. We can recommend reliable bilingual professionals to assist you.
What if I can't be there to sign the contracts of the property?
You can give procuration pour acquerir (power of attorney) to your notaire, or someone else you know in France.
What are the notaire’s fees and closing costs?
When purchasing property in France, you can expect notaire fees of approximately 7% - 8%, [7.5%–8.5%, starting June 1, 2025] for resale properties and 2%–3% for new builds, in addition to the purchase price. The majority of these fees are taxes collected by the French government, with only a small portion allocated to the notaire for their professional services. To obtain a detailed estimate tailored to your purchase, you can visit the Chambre de Notaires de Paris website.
Agency Fees
The frais d'agence (agency fee) is typically 5% of the purchase price and is usually included in the advertised price. This fee is paid by the seller.
Please note that the agency fee is distinct from our consulting fee, which covers services such as property searches, negotiations, and assistance in closing the deal.
Can I apply for a mortgage in France?
Yes! Banks in France provide mortgages to foreigners. We can connect you to brokers who work specifically with foreigners. Another useful tool is France Home Finance's mortgage calculator.
What other taxes should I be aware of as a non-resident?
As a non-resident property owner in France, it is important to be aware of the following taxes:
Property Ownership Tax (Taxe Foncière)
This annual tax is payable by the property owner and is determined by several factors, including:
The size and condition of the property
Its amenities (e.g., parking, swimming pool, etc.)
The neighborhood or location
The amount varies significantly depending on the local council (commune).
Residency Tax (Taxe d’Habitation)
While this tax used to apply to all property occupants, recent reforms have gradually phased it out for primary residences. However, non-residents owning second homes may still be subject to this tax.
It is calculated based on:
The size and condition of the property
Its estimated rental value in the open market
Rates determined by the local council
Always check with the local authorities to confirm whether this tax applies to your situation.
Income Tax on Rental Income
If you rent out your property, rental income is taxed at a flat rate of 19% for non-residents. However, additional social charges (prélèvements sociaux) of 7.5% may also apply.
Wealth Tax (Impôt sur la Fortune Immobilière - IFI)
If the combined value of your French properties exceeds €1.3 million, you may be liable for the wealth tax, which applies on a sliding scale starting at 0.5%.
What are building charges?
Building charges in France are comparable to HOA (Homeowners' Association) fees in the United States. These fees are managed by the syndic (property management company) and overseen by the assemblée générale de copropriété (general assembly of co-owners). The syndic communicates updates, plans for repairs, and renovation proposals, which are voted on by the co-owners during regular meetings.
Key Features of Building Charges:
Purpose:
Cover maintenance and upkeep of common areas (e.g., hallways, elevators, gardens).
Fund repairs and improvements to the building’s structure and shared facilities.
Include utilities for communal spaces, such as water, electricity, and heating (if applicable).
Billing Frequency:
Charges are typically billed quarterly and are often modest compared to HOA fees in major U.S. cities.
Average Costs:
In Paris, the average cost is approximately 40€/m² per year, though this can vary depending on the building’s amenities (e.g., concierge, pool) and location. For example, luxury buildings or those with extensive communal services may have higher charges.
Additional Notes:
If you purchase a property, review the last three years of the copropriété meeting minutes to understand potential upcoming expenses (e.g., major repairs or renovations).
Building charges are shared among co-owners based on their property’s tantièmes (percentage of ownership in the building).
What else should I know about purchasing property in Paris?
Buying property in Paris is an exciting opportunity, but the process is unique and often very different from what you might be accustomed to. Here are some important aspects to keep in mind:
Closing Periods Vary
While the average closing time is about 3 months from the signing of the preliminary contract (compromis de vente), delays are not uncommon. Depending on the seller’s circumstances or administrative requirements, closing periods can stretch to 6 months or more. Each transaction is unique, and flexibility is often required.
Cultural Differences
The process, communication style, and sense of urgency in France can differ significantly from other countries, especially fast-paced environments like the United States. The French system prioritizes thoroughness over speed, which can feel slow-paced or even frustrating at times.
Communication: Sellers, agents, and notaires may take longer to respond than you might expect.
Holidays and breaks: August, in particular, is a slower month due to widespread vacations in France, which can delay progress.
These cultural differences are inevitable but manageable with the right guidance.
Unpredictable Variables
Each property deal can come with its own set of surprises. For instance:
The seller may need more time to vacate the property.
Financing or title checks may take longer than anticipated.
Additional negotiations may arise based on inspection results or other findings.
Our Advice
Approach the process with patience, flexibility, acceptance and an open mind. Embrace the journey as part of your Parisian adventure! We are here to guide you every step of the way, helping you navigate the process and cultural nuances with ease.
Click here to see the Paris Region real estate market report as of August 2024