Who can buy property in France?

In France, foreigners can purchase real estate on the same terms as local citizens, which includes the right to own both property and land. There are no significant legal distinctions regarding ownership rights between foreigners and locals. However, the process and certain requirements may differ slightly depending on your nationality. For citizens of European Union (EU) countries, the procedure is generally more straightforward, with fewer bureaucratic challenges compared to non-EU citizens, primarily due to the EU's policies on free movement and settlement. While non-EU citizens face no outright restrictions on buying property, the process can be more complicated.

Do the research

Investing in France's real estate is appealing due to the country's stable economy, rich cultural heritage, and strong demand for properties, particularly in major cities like Paris, Lyon, and Nice. France remains one of the most sought-after destinations for both domestic and international buyers, thanks to its quality of life, excellent healthcare, and education systems. The French real estate market is known for its resilience, with property values generally appreciating over time, making it a relatively secure investment.

Additionally, France's tourism sector is robust, creating opportunities for rental income, especially in popular tourist destinations. The government also offers various tax incentives for property investors, particularly in rental properties, which can enhance the overall return on investment. The country’s diverse property market caters to various investment strategies, from residential and vacation rentals to commercial real estate. With its blend of historic charm and modern amenities, France provides a unique opportunity for real estate investors seeking long-term growth and stable returns.

Here are some sought-after destinations for real estate investment in France:

• Paris - As the capital and cultural heart of France, Paris is a premier location for both residential and commercial real estate. Iconic neighborhoods such as the Marais, Saint-Germain-des-Prés, and the Latin Quarter are particularly popular for their rich history, vibrant lifestyle, and modern amenities. Paris offers a range of properties, from luxurious apartments to charming historic homes, making it a top choice for investors seeking both long-term appreciation and rental income.
• Nice - Located on the French Riviera, Nice is renowned for its stunning beaches and Mediterranean climate. The Promenade des Anglais and Old Town (Vieux Nice) are prime areas for holiday homes, luxury villas, and investment properties. With a thriving tourism industry, Nice attracts both tourists and real estate investors looking for lucrative rental opportunities.
• Lyon - As France's third-largest city, Lyon is known for its culinary scene and rich cultural heritage. Key districts like Vieux Lyon and the Presqu'île are sought after for residential properties and investment opportunities. Lyon's strong economy, vibrant arts scene, and excellent transport links make it an attractive destination for both local and foreign investors.
• Bordeaux - Famous for its wine production, Bordeaux is experiencing a real estate boom. The city’s historical architecture, along with its vibrant lifestyle and growing tech scene, make it a desirable location for investors. Areas like Chartrons and Les Halles offer a mix of charming homes and modern apartments, appealing to both families and young professionals.
• Marseille - As France's second-largest city, Marseille boasts a rich maritime history and diverse culture. The Old Port (Vieux-Port) and the trendy Le Panier district are popular for residential and commercial investments. With a strategic location on the Mediterranean, Marseille is becoming increasingly attractive to international investors seeking growth potential.

Where to find properties online:

• https://www.seloger.com/
• https://www.leboncoin.fr/
• https://www.logic-immo.com/

Financing

Foreigners can obtain mortgage loans in France, although the process may vary depending on their nationality and residency status. Many French banks and financial institutions offer mortgage options to non-residents, making it possible for international buyers to finance their property purchases. Generally, lenders require a down payment of at least 20% to 30% of the property's value, and the loan amount typically covers up to 80% of the purchase price. Additionally, banks will assess the borrower's financial situation, including proof of income, credit history, and existing debts, which may involve providing documentation in a foreign language.

Due Diligence and Sales Contract 

In France, the property sales contract, known as the "compromis de vente," is a legally binding document that outlines the terms and conditions agreed upon by both the buyer and the seller. This contract includes essential details such as the purchase price, payment terms, deposit amount, and specific property information, including any fixtures or inclusions. Once both parties sign the compromis de vente, it becomes legally binding, and the buyer typically pays a deposit of around 5% to 10% of the purchase price to secure the agreement. Following the signing of this contract, a period of negotiation and due diligence usually takes place, during which the buyer can conduct inspections and verify the property's status. The final transaction is then formalized through a notarial deed, known as the "acte de vente," which officially transfers ownership from the seller to the buyer.

Property Buying Costs and Taxes in France

Footnotes to Transaction Costs Table

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.

VAT:
Value Added Tax (VAT) is levied at 20% of the purchase price of a newly built property. Existing properties older than 5 years are not subject to VAT.

Notary Fee:
The use of a French notary is mandatory for property purchases. The purchaser pays the notary's fees, which are fixed by law and non-negotiable. The notary fees are around 1% to 2% plus VAT for newly built properties.

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 a 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 4% 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.