The allure of buying a property in France makes complete sense; with stunning scenery you’ve only ever seen in movies, and some of the most affordable property prices and lowest interest rates in Europe. But what does it cost, from start to finish, to purchase a property in France?
Here, we outline all of the fees involved, from the legal paperwork to unexpected expenses you might not be prepared for, so that you can go into your purchase as knowledgeable as possible and come out of it with the property of your dreams.
The Average Cost of Property in France
Understandably, the average cost of properties across France is going to differ from region to region. There are many variables that determine the average cost of a property, and in France these can include the age and condition of the property, proximity to landmarks and resources, land rights, and the neighbourhood in general.
The quickest and easiest way for you to get an understanding of the average cost of properties in the area you’re interested in, is to look at properties that have sold recently, and the prices of current properties for sale in the area you are interested in. A trusted buyer’s agent can also give you advice on this as they have local knowledge of most of the markets and micro-markets within France.
Set Your Budget
Having your budget set in place is your first step before starting your property search in France. One of the main factors to consider when setting your budget is that most fees associated with the sale of property in France are paid by the buyer. Fees can sometimes account for up to 20% of the price of the property, so it’s essential that you factor in these costs from the beginning so that you’re well prepared and your purchase isn’t delayed, or even worse, terminated.
All of The Fees Involved with Buying a Property in France
- Sales Agent Fee : Sales agent’s fees in France are generally built into the listing price, however you should always confirm this as early into the process as possible to avoid any confusion.
- Buyer’s Agent Fee : Buyer’s agent fees vary based on what kind of services are engaged. In some cases, buyer’s agent charge an engagement fee to get started, then the majority of the fees are payable once the property has been purchased.
- Notaire Fees : Notaire fees can range between 6% – 8% for properties over five years old, and 2% – 3% for newer properties. These figures depend on the value of the property and your mortgage. Any property purchase in France must be conducted through a notaire, including private sales, so these fees are unavoidable.
- VAT and Property Tax: Any property less than five years old will be subject to 20% VAT (value added tax). Where applicable, most properties are listed with the tax already added, however some aren’t, so it’s always best to check. There are no additional taxes on the purchase of your property, however as a new property owner we suggest becoming familiar with what local taxes you might need to pay on your property, if any.
- Diagnostic and Buildings Surveys : There are several diagnostic surveys that must be carried out on a French property at the time of sale as a legal requirement. These surveys are payable by the seller, however if you wish to engage the services of your own contractor, it would be at your own expense.
- Insurance : As a new homeowner and an international buyer, it’s imperative that you have home insurance on your property, especially if you have a mortgage on the property. A buyer’s agent can assist you with finding the best insurance for your property.
- Currency Exchange Fees and Addition Fees for Foreign Buyers : It’s likely that you’ll be making several international transfers during your property purchase in France, so you will need to keep on top of currency exchange rates and transfer fees, as these can fluctuate daily. It’s also a good idea to have a long term strategy in place if you’re paying off a mortgage in France. It’s also important to be prepared for additional expenses you may encounter as an international buyer, for example translation of documents if you aren’t working with an English speaking team.
We hope this guide has helped you feel more prepared going into your property purchase, and given you an overview of how to begin budgeting for your new venture. Contact us any time if you’d like more information on anything you’ve read in this article, or to take the first steps towards owning your own slice of France.
While you’re here, check out some of our other blog posts:
Trusted Partners of Buy Property in France:
If you need assistance with purchasing a property in France, we suggest the team at Milieux Property. They are international buyer’s agents who specialise in buying property in France for English speakers.