DMTO (Droits de Mutation) in France is a flat rate of 6.3% of the purchase price. Transfer tax composed of departmental tax (5.0% in most departments since April 2025), communal tax (1.2%), and state levy (~0.1%). Total approximately 6.3% for existing properties. New-build properties pay 20% TVA instead (with reduced notary fees of ~2-3% total). No progressive brackets — the same flat rate applies regardless of property value. No foreign buyer surcharges.

When purchasing property in France, typical closing costs include: Notary Emoluments (Emoluments du Notaire), Land Registry (Contribution de Securite Immobiliere), Notary Disbursements (Debours), Mortgage Registration Tax (Taxe de Publicite Fonciere), Notary Fees on Mortgage Deed, Property Valuation (Expertise). These are paid by the buyer at or before completion, in addition to the purchase price and DMTO (Droits de Mutation).

Ongoing costs for property owners in France typically include: Taxe Fonciere (Property Tax), Taxe d'Habitation (Second Home Tax), Building Insurance (Assurance Habitation), Maintenance & Repairs. These are annual costs that should be factored into your rental yield and cash flow calculations.

Capital Gains Tax (Plus-Value Immobiliere) applies when you sell a property for more than you paid. Combined rate of 36.2% (19% income tax + 17.2% social charges) on the net gain. Both components benefit from taper relief based on holding period: the income tax portion is fully exempt after 22 years, and social charges after 30 years. Primary residence is fully exempt regardless of holding period. An additional surtax of 2-6% applies on large net gains exceeding EUR 50,000 (not modelled). Companies (SCI a l'IS) pay corporate tax at 25% with no taper relief. Your primary residence is exempt from capital gains tax.