First published: 17th March 2021
Last updated: 21st Dec 2022
by FrenchEntrée 2
Whether property hunting, making an offer, or signing the final Acte de Vente, there are many things to consider when buying a property in France. And once you add the difficulties of navigating French property law, signing contracts in a foreign language, and dealing with an unfamiliar property market, there is a much greater potential for things to go wrong.Our Beginner’s Guide to Buying French Property will take you through everything you need to know, but knowing what not to do can be just as important. With that in mind, here are some of the most common French property pitfalls to avoid.
Plan Ahead to Avoid Common Pitfalls
From costly renovation disasters to planning permission woes—if you’ve been dreaming about buying a house in France, you’ve likely also imagined a few nightmare scenarios along the way.
The good news is that the French conveyancing system is very well organised and secure. There is no equivalent of reported problems with non-existent title deeds (such as in Cyprus) or invalid planning permissions (such as in Spain). The vast majority of property purchases in France go smoothly, and when mistakes do happen, they are often the result of a lack of knowledge or preparation.
Common pitfalls include purchasing a property without the right documentation (for example, surveys and planning permission certificates), underestimating the costs of renovations and extra fees, and signing contracts without fully understanding the implications of French law. But all of these things can be avoided if you know what questions to ask from the start.
French Buyer’s Mistakes: During Your Property Visit
Do your research before visiting a French property and make a list of questions to ask to avoid missing anything. Here are some of the key mistakes to avoid at the decision stage:
Viewing your property through rose-tinted glasses
It’s easy to get swept up in the excitement of finding your perfect French property, but be sure to take off your rose-tinted glasses before signing anything. Survey your potential property with critical eyes—note its downsides and necessary renovations, look carefully at access (in country areas, be sure to check access rights to private land and lanes that border your property, too), consider the location and neighbourhood. Think about how the property and location will be at different times and seasons. That 100-year-old farmhouse in the heart of the countryside might be a dream under the summer sunshine, but what about in mid-winter when the access roads are flooded, it’s grey and dreary, and the nearest supermarket is an hour’s drive away? Similarly, if you’re buying a city apartment, it’s wise to visit the area on a Friday or Saturday evening, as well as on a quiet weekday afternoon.
Another good pointer is to ask why the sellers are selling. Is there some hidden or undisclosed reason for the sale, such as noisy neighbours or a nearby factory you weren’t aware of. If the previous owner has died or if the current owners are divorcing, this could lead to delays in the transaction, so it is best to know all the facts at the outset.
Being unrealistic about renovations
Don’t underestimate any work that needs undertaking, especially when buying an old property or conversion. Be sure to factor these additional costs into your budget and be realistic about what work you can carry out yourself, the timescale and costs of hiring architects and builders, and whether or not you will need planning permission. It’s best to overestimate renovation costs at this stage than end up with unexpected bills once the sale has already gone through.
Not getting the right documentation
Ensuring that the property has all the correct documentation is essential. Has the property been extended, or is it a conversion from a former agricultural building? In either case, it is important to check what planning permission was required for the work and whether all requisite consents and certificates of conformity were obtained. If the property is less than 10 years old, there should be an insurance guarantee in respect of the structure and major works. You should seek confirmation that there is a valid insurance policy (or the remaining portion of it) available for you to claim against in the event of a defect arising linked to the construction.
Always ask questions about the foul drainage system, especially in rural areas. If the property is not connected to mains drainage, a seller is required to produce a report giving details of the individual drainage system and whether it complies with current requirements. The report must be no more than three years old when the property is sold.
If the property you are considering buying is an apartment or is part of a complex with shared facilities, there will be a legal structure in place known as “une copropriété” (a co-ownership). All owners have voting rights and are entitled to attend an Annual General Meeting of the co-owners. It is essential to request a copy of the minutes of the last year’s AGM as this will give a good indication as to whether the block or complex is well managed or is fraught with problems.
Legal Pitfalls to Avoid When Buying French Property
French property sales can happen much quicker than in the UK or the United States, and if you’re crunched for time, it’s easy to get swept up in the process. Here are the key French property pitfalls to avoid during the buying procedure:
Not seeking independent advice before you purchase
All property purchases in France must be legally undertaken by a notaire,and it is standard practice for a single notaire to represent both the buyer and seller. However, that doesn’t mean you can’t appoint your own notaire, receive independent advice from a UK solicitor, or consult a French law specialist. This is especially important if your native language is English—having a bilingual specialist who can explain important legal details can be invaluable. Most, importantly: if you don’tunderstandwhat you are signing, don’t sign!
Making direct payments without your notaire
Never agree to pay any part of the purchase pricedirectly to the seller. Always insist that the full purchase price is paid via the notaire. You will be required to make a declaration in the purchase deed confirming that the price stated in the deed is the full price and you are warned that any breach of this can lead to substantial tax penalties. You should politely ignore any suggestions from either the seller or the agent that “under the table” payments are common practice in the area. Put very simply, it is against the law.
One exception to this rule is where both the buyer and the seller are British, it is quite common for them to agree to make the sale and purchase a sterling transaction. This is permissible, and most notaries will agree to such a proposal, but only on the basis that the sale price actually passes through the account of a UK solicitor who can confirm the funds have been paid and received. Therefore paying the purchase price in sterling direct to the seller will rarely be acceptable to the notary in France.
Not budgeting for fees and taxes
As well as considering renovation works, another factor to consider in your budget are the notaire’s and agents fees, which can easily add an additional 15% onto the purchase price. Mortgage fees, solicitor’s fees, surveys, and taxes (most of these, including stamp duty, are included in the notaire’s fees) also need to be accounted for.
Not thinking about French inheritance law
One big difference for foreign buyers when buying a house in France are laws regarding inheritance. Under French law, you don’t have the same rights to choose who to leave your property to unless you insert a certain clause into the sales contract at the time of purchase, a portion of your estate will pass to your children. There are also potential inheritance tax consequences, particularly for unmarried partners purchasing a house together.
For more on this, consult our article on French property ownership. The critical thing to note is that this can only be done at the time of buying, so it is imperative that you understand your options and get professional advice before signing the contract.
Not getting a survey done
Do not believe the myth that the French don’t dosurveys. French buyers generally appoint an architect, builder or other construction specialist to look over a property for them before they buy. Therefore, don’t feel nervous of telling your seller or the agent that you have decided to have a survey carried out.
Don’t get confused between a diagnostic survey (which are legally required from the seller) and a building survey (which must be requested by the buyer).
Avoiding French Property Pitfalls
Being aware of the most common French property pitfalls means you can plan and prepare accordingly. The best advice is to ask lots of questions and, if possible, revisit the property on several occasions so as to have time to carry out a close inspection before signing on the dotted line!
FrenchEntrée not only has a team of dedicated professionals to aid you in your property search and purchase, but our Buying Property zone is full of practical advice for French property buyers.
FAQs
French Buyer's Mistakes: During Your Property Visit
- Viewing your property through rose-tinted glasses. ...
- Being unrealistic about renovations. ...
- Not getting the right documentation. ...
- Not seeking independent advice before you purchase. ...
- Making direct payments without your notaire. ...
- Not budgeting for fees and taxes.
Visa requirements
If you intend to spend longer than 90 days, then you will now need a Long Stay visa. There are many different types but as a holiday homeowner you will probably apply for a Visa de Long Sejour Temporaire Visiteur. Details are available from the French Government (in English) here .
What is happening in the French property market? ›
Rising interest rates France 2023
During 2022, Mortgage interest rates have risen in France, from a 50-year low of 1.1% in December 2021 to 2.5% in December 2022. Rates are expected to rise to around 3.5% in 2023 and 2.75% in 2024 [SOURCE: France Interest Rates 2023 www.tradingeconomics.com].
What do you need to know about buying a house in France? ›
A guide on how to purchase a property in France
- Define your property search in France.
- Visit properties.
- Make an offer on a property.
- Sign a Compromis de Vente.
- Sign an Acte de Vente at the notaire's office.
MORTGAGES. Americans can get a French mortgage under some circ*mstances, but it is extremely difficult. The 'Foreign Account Tax Compliance Act' (FATCA) is part of the US tax code and was introduced in 2014 to help counter tax evasion. French banks find the cost of complying with this to be prohibitive.
What are the pitfalls of moving to France? ›
Cons of Living in France
- High living costs.
- Old houses.
- High taxes.
- Complicated bureaucracy.
- Language barrier.
- Shortcoming of jobs.
- High housing tax.
- Too many strikes.
Individual Ownership : U.S. citizens/residents may purchase French real property in their individual names. If they do so, the French real property, as immovable property and under international private law rules, will be governed by French inheritance and tax laws.
How long can a US resident stay in France? ›
U.S. citizens planning to enter and visit France as tourists do not require a visa. Citizens are permitted to remain in the country a maximum of 90 days. CAVEAT: There is no provision in our own law for intercession by foreign embassies on behalf of their citizens who wish to circumvent our established procedures.
Can you buy a house in France without being a citizen? ›
There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID. Besides your deposit, you can also expect to pay notaire's fees.
Why are so many French houses empty? ›
The housing stock in France is increasing at a faster rate than the population, resulting in a rise in the number of empty properties. One of the main characteristics of the French housing market is the high number of new homes that are constructed each year.
The holiday season is one of the best times to purchase property in France, with December through February marking one of the strongest periods during the year to negotiate prices.
Is it wise to buy property in France? ›
This growth in lending is a direct result of the historically low mortgage interest rates in France (1.05% in August 2021). The Banque de France is prediciting that mortgage rates will remain low during 2022. The French property market is one of the most regulated housing markets in the World.
What taxes do you pay when buying a house in France? ›
There are two local annual taxes, the 'taxe d'habitation' and the 'taxe foncière which are both are levied in October / November. These taxes are based on the cadastral value of the property. The rates of tax are set by the région, the département and the commune and vary from one district to another.
Can you negotiate house price in France? ›
Of course you need to haggle when buying a house in France! Everybody does it and the seller is expecting it. He or she has added at least 10% to the already optimistic price used for advertising the property. So if your first offer is about 20% under the asking price, nobody is going to be vexed.
What is the property tax in France? ›
All properties located in France are subject to a 3% real estate tax. The tax is assessed annually on the fair market value of the real estate, in proportion to the direct or indirect interest held. All entities in the chain of ownership are jointly liable for the payment of the tax.
Can you retire in France as an American? ›
Can an American retire in France? Yes an American can retire in France. For visits longer than 90 days you will need to apply for a visa de séjour temporaire (a residence visa). You cannot apply while on vacation in France, you ust apply for this residency visa from your nearest French consulate in the U.S.
Can an American just move to France? ›
Americans who intend to stay in France for less than 90 days don't need visas. But, from November 2023, US citizens must apply for an ETIAS travel authorization to enter France. The application for ETIAS will be online and will cost €7 per person. Anyone under 18 and over 70 will be exempt from paying the fee.
Why is France so cheap to buy a house? ›
France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.
Is it cheaper to live in France or us? ›
According to multiple indexes, including the cost of living with and without rent and the average yearly income, the cost of living is estimated to be 6% cheaper in the USA than it is in France.
Is it worth retiring to France? ›
It's an excellent area to live in, with a good public healthcare system and an affordable cost of living. France does not have a retirement visa, however, there are various pathways to retire and live in France without requiring a retirement visa.
Some perks to living in France as an American include access to stellar healthcare, proximity to other European countries, and stunning landscapes. The climate, (especially in the south), and walkability in many cities and towns are a couple more reasons why Americans have decided to make France their home.
Is it a good idea to buy a house in France? ›
Firstly, the property market has been growing steadily for the last 5 years and has shown remarkable resilience, even despite 2 Covid-19 confinements. Secondly, the French economy is forecast to rebound strongly in 2023 with GDP growing by +4.2% , following a healthy +6.8% recovery during 2022.
Do you pay a tax when you buy a house in France? ›
The French taxe foncière is an annual property ownership tax which is payable in October every year. It is payable by the individual who owns the property on the 1st January of the same year and is applicable whether you live in your property or rent it out.
What fees are payable when buying a house in France? ›
Your total purchase costs including notary fees, land registration fees and taxes will be approximately 2.5% of the property price. This applies to all new properties under 5 years old. If unsold after 5 years they then count as resales. Resale property – total purchase costs will be in the range of 6% to 8%.
Can I live in France permanently if I buy a house? ›
Purchasing a property in France does not automatically grant non-EU citizens permanent residency. They must apply for a long-term visa or residence permit, fulfilling requirements such as proving sufficient financial resources and having health insurance coverage.
Can I buy a house in France as a US citizen? ›
There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID.
What is the average house income in France? ›
The average median household income (PPP) was $40,094 in 2021. France's median household income (PPP) hit $61,020 in 2021, an increase of 1.2% over the previous year. Between 2010 to 2021, France's median household income (PPP) increased by 6.6%.
What is the average house price in France? ›
The average price per m2 in Paris in Q1 2021 stood at €10,640. This was some 60% more expensive than property prices in Lyon (€5,000), Bordeaux (€4,440), Nice (€3,910) and Nantes (€3,720).
What is the new French property tax for non residents? ›
Non-residents are taxed at a flat rate of 20% or 30% on investment/ rental income. If you earn up to €27.478, the rate is 20% (2022). Everything beyond this level is taxed at 30%.
How much is annual property tax in France? ›
These taxes are based on the cadastral value of the property. The rates of tax are set by the région, the département and the commune and vary from one district to another. The taxe foncière and taxe d'habitation are both typically around 10 - 20 euros per m2 per year each.
Taxe foncière is a French land tax and the owner of the real estate pays it even if there is no house on the land. Taxe d'habitation is a residence tax, and it should be paid by those who are living in the property on 1 January, whether it is an owner or tenant. If it's vacant, the owner is still obliged to pay it.
What are the hidden costs of owning a home in France? ›
This would include your deposit, the fees involved in setting up a mortgage (including life assurance), transfer tax or stamp duty, notary fees, independent legal fees, property registration fees and possibly a survey – as well as the estate agent's fee, which is paid by the buyer in France and generally much higher ...
Who pays the notaire when selling a house in France? ›
When selling your French property, it is necessary to use a French notaire. Only notaires are able to carry out the transfer of property from one party to another. The good news for the seller is that the purchaser is responsible for the notaire's fees.
Can an American move to France permanently? ›
To stay long-term, you'll have to apply for a one-year French visa, which has the option for annual renewals. Depending on your circ*mstances, it can take anywhere from three to ten years to obtain permanent residency. At that point, you assume nearly all of the responsibilities of a French citizen.
Do I need a lawyer to buy a house in France? ›
Despite all of this, we strongly advise using your own independent lawyer to assist you when buying or selling a French property.
How long can you live in France without residency? ›
If you spend more than 6 months a year in France, you are then considered as a French resident and must apply for a Long Stay visitor visa (visa de long séjour valant titre de séjour VLS-TS « visiteur »).
