What are the costs associated with buying property in France?
When purchasing property in France, there are several costs to consider alongside the property's actual price. These expenses can fluctuate based on various factors like location, property type, and more. Here's an overview of the common costs associated with buying property in France:
The Property Purchase Price: This constitutes the property's actual cost, and it's typically the most substantial expenditure. Prices can significantly vary based on the property's location, size, and condition.
Notary Fees (Frais de Notaire): Notary fees are a substantial part of the property acquisition process in France. They generally amount to 7% to 8% of the property's purchase price for existing properties, with potentially higher costs for new constructions. This fee encompasses various taxes and the notary's service charges for handling the transaction.
Transfer Taxes (Droits de Mutation): These taxes are paid to the local tax authority and generally amount to around 5.8% of the property purchase price. The exact tax rate might differ based on the region and property type.
Agent's Fees (Frais d'Agence): If you enlist the services of a real estate agent to assist with your property search and purchase, you may be obliged to pay agent's fees. These fees can range from 3% to 10% of the property's purchase price and are typically shouldered by the buyer.
Mortgage Fees: If you opt for a mortgage to finance your purchase, you'll encounter associated fees, which may include application fees, appraisal fees, and mortgage arrangement fees. The specific charges can vary based on the lender and the mortgage terms.
Survey and Inspection Costs: It's advisable to conduct a property survey and inspection to evaluate the property's condition. The expenses here can fluctuate based on the property's size and complexity.
Legal and Notary Costs: Apart from notary fees, you might need legal counsel or an attorney to manage the transaction's legal aspects.
Property Registration Fees: These fees cover the expense of registering the property with the French land registry and are generally borne by the buyer.
Bank Charges and Currency Exchange Fees: Transferring funds from another country may involve bank charges and currency exchange fees.
Utilities and Connection Fees: You might be responsible for the costs associated with connecting utilities like water, electricity, and gas, as well as settling any outstanding bills from the previous owner.
Home Insurance: Securing home insurance for your new property is advisable. The cost of insurance can differ depending on the location and extent of coverage.
Property Tax (Taxe Foncière): You may have to pay the annual property tax, known as "taxe foncière," which varies based on the property's location and size.
It's crucial to include these additional costs in your budget when planning to purchase property in France. These expenses can substantially increase the total acquisition cost, making it essential to thoroughly understand and consider all associated costs when assessing a property's affordability.
At Brunner & Sanina, with our architecture and consultancy experience we offer services such as Property Finder, Property Assessment, Legal Due Diligence or Property Inspection as well as Architecture services to help you, step by step in your French journey. France's charm and affordability await your discovery.