The description of the property can indicate both the net selling price (prix net vendeur) and the price including expenses to the real estate agent (FAI = frais d’agence inclus). Payment for the work of a real estate agency can reach up to 5% + VAT of the cost of the purchased property.
Approximately the same payment is provided for notary services – from 5 to 7% of the value of the property. If the buyer does not speak French and is personally present at the conclusion of the transaction at the notary, the assistance of a licensed translator will be required, whose services will cost approximately 350 euros for each accompaniment. In addition, the buyer must provide for the costs of translation and certification of documents in Russian.
All state taxes and fees are collected by the notary, as an official representative of the government. The amount of expenses when purchasing real estate in France will depend on the type of property purchased.
As usual, mandatory taxes include:
- flat income tax;
- tax on income from real estate;
- housing tax and property tax (local taxes);
- property tax.
The amount of all listed taxes will be calculated based on each individual situation (cost of housing, region, area of real estate, etc.)
You can learn more about property taxes in France here.
The most profitable option would be to buy real estate in France in a new building – it is subject to VAT, which is already included in the price of the property, and additionally, as a notary fee and the cost of re-registration of documents, you will have to pay about 2-3% of the cost of the property. If you buy secondary real estate, payments will be about 5-7% of the cost, as we wrote above.
Costs when buying real estate in France with a mortgage
If you take out a loan from a French bank, you will have to pay an administrative fee (frais de dossier), which is 1% of the total loan amount. In most cases, the bank offers the purchase of insurance, in particular life insurance. It will cost approximately 0.5% of the total mortgage amount.
You will also need to obtain mortgage insurance, in which case the percentage will vary depending on the amount of your debt. For example, insuring a loan of 100,000 euros for 15 years will cost 0.36% of the total debt, that is, 30 euros per month.