Buying a property in another country can differ significantly from buying one in your home country. However, with the proper guidance, you can easily purchase a home in France using our full service in real estate. The French property market can easily make your dream of owning a home in France come true. Investing in a French Riviera property is never at risk, no matter how the world economy turns. If you can afford a second home in France, you should consider other factors such as seasonal rental and maybe, later on, retirement.
Before you start looking for a property, it’s essential that you thoroughly understand the various aspects of the French (Riviera) real estate market. It is a consistently good time to start looking for a property in France. With the rising prices, securing a great deal on a property will benefit you in the future.
Buying in France as a non-EU citizen
For EU citizens, purchasing a home in France is pretty straightforward. If you are a non-EU citizen, you can still purchase and rent a property in the country. One crucial difference you should be aware of is that if you plan to stay in your home for more than 90 days, you’ll need to apply for a visa. Maybe a good time to fly in and out for a short holiday. If you’re considering buying or renting a property in France, you must have the necessary funds to complete the purchase. Saving money in your bank account can be beneficial when investing in real estate.
France does not have a Golden Visa for property transactions, unlike other countries. Being a homeowner in the country does not automatically grant you residency. You’ll need to get a visa and apply for permanent residency to stay in France. If you’re not a citizen of France, you can still buy a property without one.
If you’re a citizen of France and have lived in the country for five years, you’re eligible to become a French citizen. However, this can be reduced in certain circumstances, such as marriage. Before looking for an apartment or villa in France, you must understand the buying process.
Buying a property on the Cote d’Azur
An estate agent is France’s most common way to find a property. This method is usually recommended if you’re unfamiliar with the local property market. Having the support of an estate agent can be very helpful when it comes to finding a property in a remote area or a region that’s difficult to find. Having someone knowledgeable about the market can also help you find a property close to all the necessary amenities. A buyer agent in France can connect you with all real estate agents and advise you where to find the best deal.
It’s common for foreigners to buy property in France. A few banks in the country will allow you to get a mortgage. The process of obtaining a mortgage in France is similar to that of a resident. Usually, a lender will allow you to borrow up to 70% of the property’s value. We have the best mortgage broker in our team. Discover the six steps to a mortgage in France.
Some banks will limit the amount of money they’ll allow you to borrow. This is because some lenders will only allow non-EU citizens to borrow up to 50% of the property’s value. Keep in mind that if your combined credit commitments exceed 33% of your income, the bank will not be able to provide you with any further credit.
If you have a deposit ready and you’re planning on sending money to France, then you must consider the services of an experienced foreign exchange expert. One of the most common ways these professionals can help you is by comparing the rates offered by different banks in the country. Most banks in France also have English-speaking staff members who can help you with the process of transferring money. Read more about our Foreign Exchange services to save thousands of euros in banking fees.
Who is buying?
When you have agreed to buy, you can ask a French notary to put a property in both names. The notary will put in the contract if you are married or living together. If you are married, you must explain if your contract is a Community of property (Communaute Universelle) or Separation of Assets (separation des biens).
If you are buying a property above a threshold of 1,3 million, be aware that you will pay global wealth tax, the so-called IFI.
A real estate company known as a Societe Civile Immobilier (SCI) is a type of organization that allows individuals to own and manage real estate. This structure has the advantage that you can have multiple shareholders. each shareholder can take a part of the property value. In that way, each shareholder could avoid paying IFI tax over the shared property. Before you decide on which type of ownership option is best for you, it’s important that you consult with a notary. In France, inheritance laws dictate that the children must be left a portion of the property.
The buying process
The first document you’ll need to sign is the Compromis de Vente. This is a legal document that describes the details of the property. The contract is a written agreement that describes the terms of the sale agreement between the seller and the buyer. The Compromis de Vente is the first document you’ll need to sign when buying a property in France.
The main contract used when buying a property in the country is the Acte authentique. This is the final contract signed by both the seller and the buyer. After the contract has been signed, the property will be officially yours. In France, a ten-day cooling-off period is also available for the buyer. During this period, the buyer can withdraw without penalty. However, they’ll have to pay a 10% penalty fee. If you withdraw within ten days after signing the Compromis de vente, you don’t have to pay a penalty fee.
A property survey
A property survey is a detailed inspection to check the property’s condition. It can provide you with a visual depiction of the property’s condition. Property surveys in France are required by the seller to be carried out. In addition to this, the seller is also required to pay for other professional property surveys.
The property survey company must carry out ten reports. These reports include inspections such as electrical wiring, asbestos, and septic tanks. These reports are then categorized into a single document known as a DTT. Before you sign a contract, make sure that you ask the estate agent to provide you with the cadastral plans. This is the French equivalent of a land registry. This will give you a comprehensive view of the property’s size, location, and geographical factors affecting its price. You should also inquire about planning permission if you plan on doing any renovations or extensions.
Even if you’re planning on buying property in the countryside, this will be necessary as land can be used for agricultural purposes, and you’ll have fewer chances of securing planning permission. After completing all of these checks, you’ll need to sign the Acte authentique contract at the Notaire’s office. This legal document signifies the transfer of ownership from one person to another. It will be read aloud to ensure that you understand the text. If you don’t understand French, the notary will have a translator present that can explain the contract in your mother language. The costs for this are around 300 to 400 euros. After you’ve signed the contract and paid the required taxes and fees, you’re officially a property owner.
Fees to pay when buying a property in France
The price displayed for a property includes the real estate agency fees. You can expect to pay three different types of fees depending on the type of property you’re looking for. These fees are estate agent fees, mortgage fees, and notary fees. The fees for these are set by the government and can vary depending on the tax bracket of the residence.
Every property sale in France must be conducted through a notaire, and these fees can be costly. The Notaire’s fee will typically be around 7 to 8% of the property price. Three taxes are also required for residential property. If you buy new construction in France, the notary fees are lower, around 2,5%.
There are two local taxes: Tax Foncieres and Tax Habitation
Tax Foncieres is a property ownership tax that is imposed on the owners of residential and commercial properties. It can be applied regardless of whether the property is occupied. In addition to residential property, the tax is also payable on industrial and commercial buildings. The local government of France calculates the Tax Foncieres, while the owner of the property is responsible for paying the overall amount due. Notional rent is then calculated for each building or house. The local government uses the tax revenue to fund various services, such as street cleaning, garbage disposal, and fire protection. Notices for payment are usually issued in early October. You can pay online, by phone, or in person at the tax office. There are also multiple payment options.
Tax Habitation is a local property tax paid by the owners and tenants of local properties. It funds various local services, such as schools and community facilities. Ask your buyer agent how much these taxes are for the property you intend to buy. This way, there will be no surprises.
If you’re considering buying property in France but are unsure about the details, you should speak with us. Our team can help you navigate the various issues involved in the process.
