How to Buy Real Estate in France: A Complete Guide

How to search for real estate in France?
The process of buying real estate in France
Real estate in France: taxes, fees, and tax optimization
Investing in real estate in France: opportunities for investors

How to search for real estate in France?

It's best to consult a professional realtor who can not only help you find a suitable option but also protect you legally. In France, realtors bear increased responsibility for providing truthful information about real estate properties. If you decide to buy on your own, the risks can be high, such as unexpected noisy properties near your future home.

Features of buying real estate in France

Foreigners can purchase real estate in France without legal restrictions; however, there are requirements regarding the source of funds to avoid blocking the transaction. The financial part of the deal is carried out through a bank transfer to the notary's account.

Stages of buying real estate in France

The process of purchasing real estate involves several stages:

Definition of the object and signing of the price agreement.
Submission of the necessary documents to the notary, including a passport, information about marital status, and place of residence.
Guaranteed execution of the transaction in compliance with all legal norms and registration of ownership rights for the new owner with a notary.

Lizback and types of real estate

Purchasing real estate in France can also be done through the "leaseback" program, which offers certain financial advantages to buyers. The differences in the purchasing process depend on the type of property: apartments, houses, or commercial properties each have their own characteristics and legal nuances.

Buyer’s responsibilities

After purchasing real estate, the buyer is required to comply with local laws and participate in community life by fulfilling their obligations regarding tax payments and property maintenance. Remember that France is not only a beautiful country but also one where a lot of attention is paid to the proper observance of laws and social norms.

The process of acquiring real estate in France is complex and can take up to three months. Preparation for the transaction plays a key role, so it is essential to study all the details. The document "compromis de vente" establishes the terms of purchase, the price, and the deadlines of the contract. The buyer transfers a guaranteed deposit of 5% to 10% to the notary's account. They have the option to withdraw from the deal within 10 days. If the seller changes their mind, they are obliged to return the deposit to the buyer. Violation of any contract condition will lead to its termination, for example, if the bank refuses to issue a loan or if the municipality denies a construction permit. Before signing the final transaction "acte de vente" with the notary, all aspects must be taken into account. On the day of the transaction, the buyer must pay the full amount of the contract, after which they become the owner of the property and receive the keys. Obtaining the certificate of ownership will take a few more months, but the notary will issue a confirmation to the owner. The transaction costs include notary fees and state duties, which amount to about 7% in the secondary market and only 2% in new builds. The agency's commission is specified in the contract and is usually included in the property price (3-6%). It is also necessary to consider notary expenses and be prepared for all aspects of the transaction in advance.

Expenses for property registration in France

In France, the costs for the legal formalities of real estate transactions average around 7% of the total property value.

Sale flat in Antibes 4 897 437,00 $

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Sale house in Nice 3 806 521,00 $

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Rent villa in Cannes 22 391,00 $

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Sale flat in Marseille 287 221,00 $

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Of this amount, approximately 6% consists of taxes that are paid into the state budget through the notary, while the remaining 1% is the notary's fee for the services provided. When purchasing a three-room apartment on the secondary market in Antibes for 350,000 euros, the buyer can expect additional expenses of about 26,000 euros, a significant portion of which, around 83%, will go towards tax payments.

Tax evasion

Often, in real estate transactions, various strategies are employed to minimize tax liabilities. However, French tax authorities have sophisticated analysis methods, and any attempts at tax evasion can lead to serious problems and penalties. Notaries and real estate agents play a key role in this, as they must protect their clients' interests and prevent potential tax mistakes.

Commission fees

As for commission fees, their amount depends on the terms of the deal and can be paid by either the seller or the buyer. For example, in transactions involving properties valued at less than 100,000 euros, a fixed fee of 5,000 euros is usually applied.

The "Lizback" program for tax optimization

One of the tools for tax optimization in real estate ownership in France is the "Leaseback" program. This is a form of financing where assets are sold with the option to lease them back. This approach is particularly beneficial for residents of France, as it allows them to reduce their tax burden and generate stable rental income. Such investments are often associated with projects in the hospitality or healthcare sectors, providing investors not only financial benefits but also long-term stability of their investments.

Acquiring real estate in France offers various opportunities for investors, such as hotel rooms, studios in student residences, and rooms in retirement homes. The properties will be leased long-term by a management company, which will reduce the tax burden and allow for an income of 4% per year.

Diversity of objects and rental

The investor can choose from a variety of property types to be rented out over a long term, providing a favorable program on taxation and profitability.

When purchasing certain properties in France, you can not only acquire the real estate itself but also the company that owns these properties, which can be financially advantageous. Buying at the construction stage allows for installment payments and guarantees on the structure for up to 10 years.

Acquisition and maintenance

Protect your property by securing insurance and service contracts, including electricity, gas, and property management. The service in France operates at a high level, providing automatic payments and convenience for owners.

It is essential to comply with the laws and internal rules partnerships after buying a property in France to avoid problems. Foreigners can obtain the status of "visiteur" or a long-term visa to visit France without the right to work, given the current situation with COVID-19 and related restrictions and requirements.

How to search for real estate

As in most countries, searching for real estate to buy in France is best done through a professional realtor. Consulting a housing specialist is also beneficial because in France, buyers are protected by law, which places increased legal responsibility on the realtor.

When applying to a realtor, it is very important to pay attention to the fact that the specialist has a state license - such a permit is not easy to obtain in this country, which once again becomes a guarantee of competence. a guarantee of competence.

Purchase of real estate by foreigners

Everything related to real estate management and transactions in this area in France is regulated by laws dating back to 1965, and there are no restrictions for foreigners on purchasing property.

For foreigners and French citizens, it is important to know that there is a special body in France of the Ministry of Economy and Finance tracfin, which was created to combat money laundering.

Step-by-step guide: how a transaction takes place

The real estate purchase transaction is conducted by a notary – a representative of the state's interests, who guarantees the rights of all participants, including the seller's right to sell, and also carries out the registration of the property.

At the same time, the buyer has the right to change their mind and withdraw from the purchase, but no more than 10 days should pass from the moment of signing the compromis de vente. If the buyer withdraws from the deal after this period, they lose their deposit.

Costs of buying real estate in France

When finalizing a deal, it is necessary to pay notary fees and state duties. In the secondary market, they amount to about 7% of the value, while when purchasing property in a new building, the duty becomes reduced – only 2%.

The agency's commission is specified in the contract, and its amount is deducted from the taxable base of the property's value. Typically, it ranges from 3-6% of the transaction and is already included in the property's price.