How high are realtors’ and lawyers’ fees in France? What about other property purchase costs?
|Registration Fees||0.60% - 4.89%||buyer|
|Notary Fees||3% - 10% (+ 20% VAT)||buyer|
|Land Registry Salary||0.10%||buyer|
|Real Estate Agent’s Fee||1.50% - 5% (+ 20% VAT)
1.50% - 5% (+ 20% VAT)
|Costs paid by buyer||6.10% - 22.99%|
|Costs paid by seller||1.80% - 6.00%|
|ROUNDTRIP TRANSACTION COSTS||7.90% - 28.99%|
| See Footnotes
Source: Global Property Guide
There are no restrictions on foreign ownership. Most property is likely to be freehold. Apartments are likely to be held in two forms of freehold: co-ownership (which has meetings of co-owners, with votes taken and accounts kept), and volumes, adapted mostly for mixed-use developments. There are also leaseholds, for up to 99 years.
Once the parties have agreed on the price and what the sale relates to, the parties will be required to sign a preliminary agreement.
Notaires often act as estate agents, and are likely to be less expensive than immobiliers.
It takes an average of 58 days to complete all the procedures needed to register a property in France.
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
The use of French notary is mandatory for property purchases. There are several costs that are colletively called notary fees or "frais de notaire" because they are all paid via the notary. These costs include change of ownership fee (frais de mutation), charges of mortgage security (frais de garantie) and the notary fees or emoluments that also include various formalities and performance of certain acts. Most of these fees are fixed by the Chamber of Notaries and non-negotiable.
REGISTRATION FEES (Droits d´Enregistrement):
Property transactions are subject to registration fees (also called transfer fees) when they do not fall under VAT.
Duties on sales of real property are collected when the property is transferred.
Initially collected for appropriation to the State, tax on the registration of real property transactions has become a département resource for all real property transactions other than exchanges conducted since 1st January 1985. Its rate is now a single one at 3.6 %.
Apart from the tax on the registration of real property transactions, there is an additional tax of 1.20 % collected for appropriation to the commune or to a département equalization fund;
There is also another levy of 2.50 % collected for appropriation to the State, assessed on the amount of the département duty in respect of "assessment and collection costs".
Additional levy for the State at 0.2% normal rate or 0.1% special rate
Value Added Tax (VAT) is levied at 20% of purchase price of a newly built property. Existing properties older than 5 years are not subject to VAT.
The use of French notary is mandatory for property purchases. The purchaser pays the notary’s fees, which is fixed by law and non-negotiable. The notary fees are around 3% plus VAT for newly built properties. The notary fees are generally around 7% to 10% plus VAT for existing properties or properties over five years old.
There are several costs that are collectively called notary fees or "frais de notaire" because they are all paid via the notary. These costs include change of ownership fee (frais de mutation), charges of mortgage security (frais de garantie) and the notary fees or emoluments that also include various formalities and performance of certain acts. Most of these fees are fixed by the Chamber of Notaries and non-negotiable.
If there are two notaries involved, there is no extra cost to the purchaser. The fees are shared between the two notaries.
Land Registry Fee (droits d’enregistrement)
Land registry fees vary but are usually around 0.10% of the property value.
Real Estate Agent’s Fee
Real estate agent’s fees are around 3% to 10% of the selling price of the property, plus VAT. This can also be split between buyer and seller. Most properties include the agent’s fee in the asking price, and are indicated by the letters FAI ("Frais d’Agence Inclus") following the price.
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