How Much Does It Cost to Buy Property in France?

The purchase price is just the beginning

France remains one of the most desirable property markets in Europe — from Parisian apartments to countryside maisons and Riviera villas. But the French system of “frais de notaire” means that the costs layered on top of the headline price are significant and sometimes surprising to foreign buyers.

Between DMTO (transfer tax), notary emoluments, land registry fees, and various disbursements, the upfront extras typically add 7-9% on top of the purchase price for an existing property. Ongoing taxes, a combined capital gains tax rate of 36.2%, and a generous but slow taper relief schedule all shape your long-term returns. Here is exactly what to expect.

DMTO (Droits de Mutation)

France’s property transfer tax — DMTO (Droits de Mutation a Titre Onereux) — is a composite tax made up of three components:

• Departmental tax: 5.0% in the majority of departments since April 2025 (73 out of 101 departments opted for the increased rate, up from 4.5%)
• Communal tax: 1.2%
• State levy: approximately 0.1%

This brings the total DMTO rate to approximately 6.3% for existing (“ancien”) properties in most of France. There are no progressive brackets — the same flat rate applies regardless of property value, and there are no foreign buyer surcharges.

On a EUR 300,000 property, DMTO comes to approximately EUR 18,900.

For new-build properties purchased directly from a developer, the situation is different: you pay 20% TVA (VAT) instead of DMTO, but with significantly reduced notary fees of 2-3% total. This guide focuses on existing properties, which make up the majority of investment purchases.

DMTO is collected by the notary and paid to the state as part of the completion process.

Closing costs

France’s closing costs are collectively known as “frais de notaire,” though the notary’s own fee is only one component. Here is what to budget for:

• Notary Emoluments (Emoluments du Notaire): The notary’s fee follows a regulated sliding scale: 3.87% up to EUR 6,500, 1.60% up to EUR 17,000, 1.06% up to EUR 60,000, and 0.80% above EUR 60,000 — plus 20% TVA on the fee. For a typical property, this works out to roughly 1% of the purchase price, with a minimum of about EUR 1,500.
• Land Registry (Contribution de Securite Immobiliere): Registration of the property transfer with the Service de Publicite Fonciere at a fixed rate of 0.10% of the purchase price. On a EUR 300,000 property, that is EUR 300.
• Notary Disbursements (Debours): Administrative costs the notary pays on your behalf — cadastral searches, certificates, postage, and formalities. Typically EUR 800-1,500.

If you are financing with a mortgage, there are additional costs:

• Mortgage Registration Tax (Taxe de Publicite Fonciere): Approximately 0.715% of the loan amount for registering the mortgage with the land registry.
• Notary Fees on Mortgage Deed: A separate notary fee for the mortgage deed (acte de pret), approximately 1% of the loan amount.
• Property Valuation (Expertise): Required by the bank for mortgage approval. Typically EUR 250-500.

Total closing costs (excluding DMTO) typically run EUR 4,000-6,000 for a cash purchase, or EUR 8,000-12,000 with a mortgage. Combined with the 6.3% DMTO, total transaction costs for an existing property reach approximately 8-9% of the purchase price.

Ongoing costs

Annual holding costs for French investment property:

• Taxe Fonciere (Property Tax): Annual property tax based on the cadastral rental value and local rates. Budget approximately EUR 1,500 per year for a typical property, though this varies widely by location and size — from EUR 500 in rural areas to EUR 3,000+ in major cities. New builds benefit from a two-year exemption.
• Taxe d’Habitation (Second Home Tax): Abolished for primary residences since 2023, but still applies to second homes and investment properties. Budget around EUR 800 per year. A surcharge of up to 60% applies in “zones tendues” (high-demand areas like Paris, Lyon, and Bordeaux).
• Building Insurance (Assurance Habitation): Comprehensive building insurance costs around EUR 350 per year for a typical property (EUR 150-400 for apartments, EUR 300-800 for houses).
• Maintenance and Repairs: General upkeep typically runs approximately EUR 3,000 per year, or roughly 0.5-1% of property value.
• Co-ownership Charges (Charges de Copropriete): For apartments, monthly co-ownership charges cover building insurance, common areas, elevator, heating, and a reserve fund. Budget EUR 50-200 per month (EUR 600-2,400 per year). Paris and major cities tend to be higher.

Annual holding costs for a house total approximately EUR 5,650. For an apartment, add roughly EUR 2,400 for co-ownership charges, bringing the total to around EUR 8,050 per year.

Capital gains tax (Plus-Value Immobiliere)

France applies a combined capital gains tax rate of 36.2%, composed of two separate components:

1. Income tax at 19% on the net gain
2. Social charges (prelevements sociaux) at 17.2% on the net gain

Both components benefit from taper relief (abattements) based on how long you hold the property, but they taper at different rates:

• Income tax (19%): 6% discount per year from year 6 to 21, then 4% in year 22 — reaching full exemption after 22 years.
• Social charges (17.2%): 1.65% discount per year from year 6 to 21, 1.6% in year 22, then 9% per year from year 23 to 30 — reaching full exemption after 30 years.

At key milestones, the approximate combined discount looks like this:

An additional surtax of 2-6% applies on large net gains exceeding EUR 50,000 (after taper relief), but this affects only high-value transactions.

Primary residence exemption: If the property is your primary residence (residence principale), the capital gain is fully exempt from tax with no holding period requirement — one of the more generous exemptions in Europe.

Corporate ownership (SCI a l’IS): Companies pay corporate tax at 25% on gains with no taper relief, making individual ownership more attractive for long-term holds.

When selling, expect to pay an estate agent commission of 4-7% (average around 5%, including 20% TVA), plus EUR 200-600 for mandatory property diagnostics (the DDT — covering energy performance, asbestos, lead, termites, and other assessments).

What does this mean in practice?

For a EUR 300,000 investment apartment in France with a 20% deposit:

Upfront costs:

• Deposit: EUR 60,000
• DMTO (6.3%): EUR 18,900
• Notary emoluments (~1%): EUR 3,000
• Land registry (0.1%): EUR 300
• Disbursements: EUR 1,000
• Mortgage registration (0.715% of EUR 240,000): EUR 1,716
• Mortgage notary fees (1% of EUR 240,000): EUR 2,400
• Property valuation: EUR 350
• Total cash needed: approximately EUR 87,666

Annual holding costs:

• Taxe Fonciere: EUR 1,500
• Taxe d’Habitation: EUR 800
• Insurance: EUR 350
• Maintenance: EUR 3,000
• Co-ownership charges: EUR 2,400
• Total: EUR 8,050/year (approximately EUR 671/month)

Mortgage (EUR 240,000 at 3.25% over 20 years):

• Monthly payment: approximately EUR 1,365

To cover monthly costs, you would need rent of at least EUR 2,036 per month. In Paris and major cities this is achievable for a well-located apartment, but yields are tighter. Regional cities like Lyon, Bordeaux, Toulouse, and Nantes can offer stronger rental returns relative to purchase price.

The taper relief on capital gains means France rewards patient investors. If you hold for 22 years, the income tax component disappears entirely, and after 30 years you pay no capital gains tax at all. Combined with moderate appreciation of around 3%, this makes France a market where long-term holds can produce solid returns — but the high upfront costs and ongoing taxes mean short flips are expensive.

Run the numbers for your property

Use our French property ROI calculator to model the full picture — DMTO, notary fees, mortgage payments, rental income, and projected capital growth with taper relief. For a step-by-step overview of the buying process, read our guide to buying property in France.