Buying property in France could soon cost more. As part of the 2025 financing law, the departments are demanding an increase in notary fees, which could rise from 7.8 to 9% of the sale price. A measure that risks putting pressure on buyers’ budgets.
When you buy property, you have to pay notary fees. These fees, known as ‘transfer tax’, represent 7 to 8% of the sale price.
However, only a fraction of this amount goes to notaries. The rest ends up in the pockets of the state and local authorities. The local region receives the lion’s share, 3.8 to 4.5% of the amounts collected.
Temporary increase in notary fees
A figure that could soon rise by one point, as the departments are demanding a “temporary” increase in notary fees. Their share would thus increase to 5.5% of the sale price.
The measure being examined as part of the 2025 financing bill could increase the transfer tax to 8 or 9% of the sale price for a valuable consideration.
If the measure is adopted by parliament, notary fees for a home sold for €300,000 would increase by €3,000.
Transfer taxes are the departments’ main source of income. These fees represent 15-20% of their resources. But in 2024, with a nationwide property market at a standstill and high rates, this windfall will run out.
According to the National Real Estate Federation (FNAIM), sales fell by 23% year-on-year in the first quarter of 2024. Only 822,000 documents were signed during this period, the lowest volume since 2016. Property prices have also fallen in several cities.
Buy now to avoid higher notary fees in 2025
According to the SeLoger barometer, sales prices fell by 2.2% in Paris in the first half of 2024, 2.9% in Nantes, 1.3% in Strasbourg and 0.7% in Bordeaux and Lyon. Nice on the Cote d’Azur was the only one to record an increase of 1.2%
Result? While notary fees generated almost 16.4 billion euros for the departments in 2022, the amounts collected this year should amount to barely 10.7 billion euros, a third less income.
The state is demanding 5 billion in savings
The abolition of the housing tax and tax habitation had already undermined the finances of local authorities and departments. Macron gave that nice bonus as an election stunt, but now the money has to be found somewhere. The tax habitation represents a deficit of around 20 billion euros, which has never been compensated.
The government is seeking at least 60 billion euros in savings to balance the budget for 2025. It is mainly asking for 5 billion euros from local authorities, of which 2 billion euros for the departments.
Impossible, they say, except in the case of an increase in notary fees. Catherine Vautrin, the Minister of Partnership with the Territories and Decentralisation, has not ruled out this idea. On the other hand, this good friend of Barnier is against a “return to the housing tax”.
Buy now to avoid higher notary fees in 2025
A decision will not be made so quickly because the French government is already faltering. If there are new elections, the national debt will likely be on the agenda for 2026. So you still have the chance to take advantage of the ‘low notary fees’.
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