Dreaming of a second home in France? Read this information and tips on prices, taxes and rules before making a decision.

Property prices in France

Despite rising house prices, the French property market remains very attractive, especially on the coast. A property on the coast can cost as much as twice as much as a house in the countryside or in the city.

There are big price differences by region: the most expensive tourist departments to buy a holiday home are the Alpes-Maritimes (€4,150/m2), the Var (€3,500/m2) and the Bouches-du-Rhône (€2,960/m2). Less pricey departments are the Pyrénées-Atlantiques (2,010€/m2), the Vendée (1,840€/m2) and Finistère (1,530€/m2).

Taxes on French property

When buying French property, you will pay transfer tax. This amounts to 5.7% of the purchase price.

If you sell your French property, you have to pay profit tax (‘taxe sur la plus value’). This amounts to 36.2% and only applies if you sell the house within five years. Has the value of the property not increased, or are you only selling the property after 30 years? Then you do not have to pay any tax.

Important rules

• Many laws and rules apply in the French property market. You will probably have to deal with these three if you want to buy a property in France:
• The Alur law stipulates that a number of documents must be in the notary’s possession before signing the compromis de vente. That way, you will have sufficient information for your purchase.
• The Carrez law precisely defines the habitable area to prevent abuse. Non- habitable spaces (e.g. basement, attic, garage) are not taken into account. If it turns out that the surface area you obtained differs by more than 5% from what the seller claimed, you are entitled to a correction of the purchase price. This amounts to the difference in m2 times the price you paid per m2.
• The seller is obliged to submit an energy performance diagnosis (DPE). The DPE includes information on the home’s energy consumption and greenhouse gas emissions, among other things.

Tips when buying a house in France

Finally, 5 tips for those looking to buy a French holiday home:

1. Are you working with an estate agent? Make sure he has a ‘carte professionelle’. This is mandatory to be allowed to mediate in real estate. It is advisable to compare rates and commissions of different estate agents: there are often big differences here.
2. Will you take out a loan or transfer money to the seller? Then you need to open an account in France.
3. As owner, you are obliged to insure the property against fire and theft, among other things. Check if this is possible with your current insurance company.
4. Dare to negotiate the price. Many houses are sold 5-10% below the asking price.
5. In the low season, there are fewer tourists and the housing market is quieter. This is the ideal time to buy a French property. Good luck!

Dreaming of buying a holiday home? Stop by one of our Expos for information, or contact us.