France

Buying a Property in France

A Czech or Slovak citizen is not limited in the purchase of a property in France, which may be owned by a physical person or legal entity.

Purchase Procedure

Sale of Sales

A notary is an essential helper in the purchase of a property, who is responsible for finding and preparing all the documents necessary for the sale of the property and to determine if any debts are attached to the property. The first step in buying a property is to sign the Compromis de Vente contract, which is prepared by a notary and binds both parties. The buyer pays notaries 5-10% of the price of the property.

Act of Sale

The buyer has 7 days to withdraw from the contract without loss of deposit. After seven days of withdrawal from the contract, he loses the right to an advance payment, unless otherwise specified in the contract. Upon signing the final Acte de Vente contract with a notary, the remainder of the purchase price, including notarial fees, is payable.

Costs

The estimated cost of buying a property in France is:

  • Notary fees (approx. 6-14%, including real estate transfer tax, mortgage fee)
  • Commissions to local real estate agency (3-7%)

Costs related to the operation of the property in France:

  • Taxe Fonciere – determined by the municipality, usually ranges between 1.2-1.7% for the second housing, the tax base is determined by the theoretical value of the lease, the base is further reduced by up to 50% with regard to maintenance and insurance, does not pay for two years for new real estate and outbuildings.
  • Taxe d´habitation – tax base according to 1970 tables, usually between 1.2-1.7% for second housing, tax base is determined according to the theoretical value of rental as Taxe Fonciere, deductions can be applied to children.
  • Impôt de solidarité sur la fortune (ISF) property tax – paying residents on assets in France and abroad, new residents have been exempted from inclusion of foreign assets in the tax assessment since 2008 – non-residents only on assets in France.
Property PriceTax rate
Under 800,0000%
From 800’000 to 1’300’0000.5%
From 1’300’000 to 2’570’0000.7%
From 2’570’000 to 5’000’0001%
From 5’000’000 to 10’000’0001.25%
Over 10’000’0001.5%