Buying property in France offers a unique opportunity to immerse yourself in the French way of life while investing in one of the world’s most stable and desirable real estate markets.
According to Hanley & Partners Private Wealth Migration Report, France remains one of the world’s destinations for millionaire’s inflow. In 2024, the trend is mainly driven by HNWI migration from London. The fact not only indicates the country’s attractive lifestyle but also creates new business opportunities and well-paying jobs, as well as boost stock markets.
Paris and the French Riviera towns, including Nice, Cannes, Antibes, Saint Tropez, Èze, Saint-Jean-Cap-Ferrat, and Villefranche-sur-Mer remain popular destinations.
As a global marketplace for international real estate with over 75,000 homes for sale in France, JamesEdition collaborates with local professionals to delve into the country’s real estate market and the buying journey.
As a global marketplace for international real estate, featuring over 75,000 homes for sale in France, JamesEdition collaborates with local professionals to explore the country’s real estate market and buying journey.
The process of buying property in France involves several steps that are essential to ensuring a smooth transaction.
How to buy a house in France: Step-by-Step Process
Buying a property in France typically takes around three to four months from the initial offer to the final signing of the deed.
This timeline can vary depending on how simple the transaction is, and whether any financing is involved. Essential documents required include proof of identity, proof of funds, and, if applicable, mortgage agreements. Additional documentation may be necessary during the due diligence phase, like building permits and property surveys.
Professional help is crucial throughout this process. A French notary (notaire) is required by law to oversee the transaction and make sure that all legal requirements are met. For non-residents or those dealing with complex financial or legal matters, it may be beneficial to engage a lawyer who specializes in French real estate. Your real estate agent will also play a key role in managing property visits and negotiations, helping to navigate the local market efficiently.
Here is a brief outline of the process of buying a property in France:
1. Define your budget and location preferences
Begin by identifying your preferred regions in France, whether it’s the urban sophistication of Paris, the Mediterranean charm of the French Riviera, or the rustic allure of Provence.
Set a clear budget that includes the purchase price as well as additional costs like taxes, fees, and ongoing maintenance.
For non-residents, it’s important to consider potential tax implications in your home country.
2. Make an offer
After finding the right property, your agent will help you make a formal offer.
In France, offers are often made in writing and can be legally binding once accepted. Negotiation is common, and your agent will assist in securing favorable terms.
3. Appoint a Notary (Notaire)
Once your offer is accepted, both the buyer and seller must appoint a notary. This is especially important for non-residents, who will need to make sure that their chosen notary is well-versed in international real estate law.
In France, the notary plays a key role in overseeing the transaction, making sure that all legal requirements are met, and that the property title is clear. While it’s possible for both parties to use the same notary, some buyers prefer to appoint their own for added security, especially in more complex transactions.
4. Sign the Compromis de Vente (Preliminary Contract)
The Compromis de Vente is a preliminary contract that outlines the terms of the sale, including the purchase price, conditions, and deposit amount (usually 5-10% of the purchase price).
This contract is legally binding and requires careful consideration, particularly regarding any conditions like obtaining financing. Non-residents should have the contract reviewed by a lawyer to check that their interests are fully protected.
5. The Ten-Day Cooling-Off Period
Following the signing of the Compromis de Vente, there is a mandatory ten-day cooling-off period during which the buyer can withdraw from the purchase without penalty. This period is especially beneficial for non-residents who may need extra time to confirm financing or other arrangements.
6. Obtain Financing (If Necessary)
If you require a mortgage, work with your lender to secure financing during this period. French banks typically offer up to 70-80% financing, with competitive interest rates, especially for non-residents.
Documentation required includes proof of income, assets, liabilities, and sometimes life insurance.
Non-residents may also need to provide additional documentation, such as proof of residency and tax status in their home country.
7. Conduct Due Diligence
Your notary will perform due diligence checks, including searches at the French Land Registry, verifying the property’s legal status, and ensuring there are no outstanding debts or liens. Non-residents should ensure that all documents are translated accurately and seek legal advice if necessary.
8. Finalize the sale with the Acte de Vente
The final contract, the Acte de Vente, is signed before a notary.
At this point, the remaining balance of the purchase price is paid, and ownership of the property is officially transferred. For non-residents, it’s advisable to attend the signing in person, but if this is not possible, a power of attorney can attend on your behalf.
9. Register the property
The notary will register the property in your name with the French Land Registry. This secures the legal transfer of ownership and protects the buyer’s rights under French law.
Full cost of buying a property in France
When purchasing a property in France, it’s important to account for several additional costs beyond the purchase price. These costs can vary depending on the type of property, its age, and the specific terms of the transaction.
Property Classification and Taxes
On existing buildings (older than five years): 7-8%
- Notary Fees: Typically around 7-8% of the purchase price.
This includes 1-2% for the notary’s commission, plus the Real Estate Transfer Tax (RETT) and other related taxes. - Real Estate Transfer Tax (RETT): This tax, if paid separately, amounts to 5.09-6.40% of the purchase price (depending on the property type and location).
- Contribution of Real Estate Security: This small tax is 0.1% of the purchase price.
On new buildings (less than five years old): Approx. 22%
- VAT: The purchase of a new building is subject to VAT at 20% of the sale price.
- Land Registry Tax: This is 0.715% of the sale price.
- Contribution of Real Estate Security: This remains at 0.1%.
- Notary Fees: Reduced to about 0.825% for new buildings.
- The total purchase cost for new buildings is approximately 2.5% of the purchase price.
Professional Fees
Cost: Approx. 6%
- Estate Agent Fees: These typically range between 3-5% of the sale price, depending on the agreement between the buyer and the agent.
- Mortgage Fees: If financing is involved, expect arrangement fees around 1% of the loan amount, plus possible insurance costs.
- Legal and Administrative Fees: These cover translations, legal advice, and other administrative tasks, adding to the overall cost.
Can foreigners buy property in France?
Foreigners can buy property in France without restrictions, whether they are Americans, EU citizens, or non-EU citizens.
However, there are specific requirements and processes depending on your nationality, and you may need a French bank account.
- EU citizens enjoy the same rights as French nationals, with no additional barriers to purchasing property.
- For Non-EU citizens and foreign nationals, fees are limited to 10% of the property value and a visa is required to stay in the country for more than 90 days out of every 180.
- Americans face no special restrictions and the process is the same as for EU citizens. However, Americans will need a visa for longer stays, like all non-EU citizens.
- UK citizens (Post-Brexit) must now adhere to the regulations for non-EU property buyers in France. UK nationals who live in France for five years can apply for permanent residency, which is reduced to three years for spouses of French citizens.
Refining Your Property Search Strategy
The French property market is incredibly diverse, offering an array of options to suit different tastes and lifestyles.
Whether you’re searching for a modern apartment in the heart of Paris, a luxurious villa on the French Riviera, an alpine chalet or farm ranch offering a pastoral lifestyle, or a grand chateau or castle steeped in history, France has it all.
You can enhance your property search by navigating and filtering through over 75,000 homes for sale in France on JamesEdition.
Apartments | Villas | Castles and Chateau | Penthouses | Alpine chalets | Farm ranches
Financing a property in France
Securing a mortgage in France is a straightforward process, though it differs from other countries. French banks typically offer financing up to 70-80% of the property’s value, with loan terms ranging from 15 to 25 years.
Interest rates are competitive, particularly for non-residents, but it’s still advisable to engage a mortgage broker who understands the French market. Documentation required will include proof of income, a detailed list of assets and liabilities, and in some cases, life insurance coverage linked to the loan amount.
