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Taxes & Fees
France Property Taxes & Fees Guide for International Buyers
Understanding
taxes and fees in France
is essential for any international buyer considering property investment. French property transactions involve multiple costs, including purchase taxes, notary fees, and annual property taxes. Planning for these expenses ensures transparency and avoids surprises.
When purchasing property in France, buyers typically pay a
purchase tax
, also called “droits de mutation,” which varies depending on whether the property is new or resale. For older properties, the rate usually ranges from 5% to 6% of the purchase price. New properties attract a reduced rate, often around 2% to 3%, depending on location.
Notary fees are another essential consideration. In France, the notaire manages the legal transfer of property, verifies contracts, and ensures compliance with French law. Fees generally range from 2% to 4% of the purchase price for resale properties and slightly less for new builds. Notary fees also cover registration and administrative costs.
Investors should also be aware of annual taxes, including
taxe foncière
(property ownership tax) and
taxe d’habitation
(residence tax, where applicable). Rates vary depending on the municipality, property size, and type. For rental properties, these taxes should be included in financial planning, along with maintenance and insurance costs.
For international buyers, understanding capital gains tax is also crucial. Non-resident sellers of French property are subject to capital gains tax on profit from the sale. Exemptions and allowances vary, and professional advice is strongly recommended. See our
Legal Process Guide
for detailed regulations.
Mortgage-related fees, including arrangement charges and insurance, should also be considered. Buyers can consult our
Mortgages Guide
and
Insurance Guide
to understand additional financial obligations.
France has specific rules for VAT on new properties, particularly in the French Riviera, Paris, and other high-demand regions. New-build VAT is typically 20%, included in the purchase price, but reduced rates may apply in certain zones. Consulting a legal or tax professional ensures compliance.
Proper planning of taxes and fees is essential for budgeting, especially in popular regions such as Paris, Provence, Bordeaux, the French Alps, and the Riviera. Understanding local tax variations, municipal rates, and property classification can save thousands of Euros.
For trusted guidance and further insights, explore external resources like
France Property Developers
and
France Property Directory
.
Careful management of
taxes and fees
is a cornerstone of successful property investment in France. Buyers are encouraged to work with professional advisors, notaires, and brokers to navigate local rules, optimise costs, and ensure smooth property transactions.
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