Property Buyer's Guide
Buying Property in France: What It Actually Costs
Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.
Last updated: 17 May 2026
Budget 8–10% above the purchase price for taxes and fees when buying property in France. The calculator below gives you an exact figure for your situation.
When you buy a resale (ancien) property in France, you pay transfer tax — droits de mutation à titre onéreux (DMTO). It combines departmental tax (5.0% in most départements since April 2025), communal tax (1.2%), and a small state levy (~0.1%), for a published composite around 6.3% in many places. First-time buyers (primo-accédants) can exempt the first €100,000 from the departmental component only. New-build purchases usually follow 20% TVA instead of this DMTO stack.
| Component | Rate |
|---|---|
| Taxe départementale | 5.00% |
| Taxe communale | 1.20% |
| Prélèvement pour frais d'assiette | 0.12% |
Primo-accédant (first-time buyer)
Eligible first-time buyers (primo-accédants) buying a primary residence can reduce the departmental transfer tax: the first €100,000 of the purchase price is exempt from the 5% départementale component.
On a €300,000 purchase, that saves €5,000 on the départementale slice — communal (1.2%) and state (~0.1%) still apply to the full price.
Primary residence, income caps, and prior ownership rules apply — your notaire confirms eligibility before signing.
Primo-accédant shield on taxe départementale (first €100,000 exempt on that component)
What's not covered
- Départemental rates may still be 4.5% or 5% depending on the département — confirm the rate that applies to your deed date.
- New-build (neuf) purchases follow 20% TVA, not this DMTO composite.
- Primo-accédant relief requires a primary residence and other conditions — confirm with your notaire.
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On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.
Transfer / conveyancing fees
Cash or bondThese fees apply whether you're paying cash or taking out a bond.
Bond registration fees
If using a home loanIf you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.
Agent commission
Estate agent commission in France is typically 4-7% of the sale price (average ~5.7%). Usually paid by the seller (but contractually flexible). The fee includes 20% TVA. Rates are negotiable.
The purchase price is just the beginning. As a property owner in France, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualTaxe Fonciere (Property Tax)Annual property tax based on cadastral rental value and local rates. Typically EUR 500-3,000+/year depending on location and property size. Paid by the owner as of 1 January. New builds benefit from a 2-year exemption.Typically escalates ~2% per year
- annualTaxe d'Habitation (Second Home Tax)Still applies to second homes and investment properties (abolished for primary residences since 2023). Surcharge of up to 60% in "zones tendues" (high-demand areas like Paris, Lyon, Bordeaux). Set by commune — varies widely.Typically escalates ~2% per year
- annualBuilding Insurance (Assurance Habitation)Annual comprehensive building insurance (multirisque habitation). Effectively mandatory for owners. Typically EUR 150-400/year for apartments, EUR 300-800/year for houses.Typically escalates ~3% per year
- annualMaintenance & RepairsAnnual budget for ongoing repairs and maintenance. Typically 0.5-1% of property value per year.Typically escalates ~3% per year
Additional costs for Apartment (Appartement) properties
- Co-ownership Charges (Charges de Copropriete)Monthly co-ownership charges covering building insurance, common areas, elevator, heating, concierge, and reserve fund. Typically EUR 50-200/month (EUR 20-50/sqm/year). Paris and major cities tend to be higher.Charged per month
Additional costs for Short-Term Rental (Location Meublee Touristique) properties
- Tourist Tax (Taxe de Sejour)Per-person per-night tax varying by commune and property classification: EUR 0.20-4.00. Platforms like Airbnb typically collect this from guests — set to 0 if the platform handles it.
- STR Registration / ComplianceDeclaloc national registration is mandatory from 20 May 2026 for furnished tourist lets (meublés de tourisme). Register on apimeubles.finances.gouv.fr and display your registration number on ads. Property must meet energy rating A–E (class G banned since 2025; F from 2028). Annual compliance and renewal costs; fines apply for non-compliance.Charged annual
Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.
France taxes capital gains at separate, lower rates than ordinary income. If you hold the property for more than 12 months, you qualify for long-term rates — which are significantly lower than short-term rates.
Long-term capital gains rates
| Your income level | CGT rate |
|---|---|
| 36.2 | 36.199999999999996% |
When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.
Good news: Foreigners of any nationality can freely buy property in France. There are no restrictions, no foreign buyer surcharges, and no additional taxes. You pay exactly the same rates as French citizens.
Here's what foreign buyers need to know:
- 1 Notary handles everything: In France, the notaire handles the entire conveyancing process. Unlike many countries, you don't typically need a separate lawyer (though you can appoint one at no extra cost — fees are split).
- 2 Same tax rates: Foreign buyers pay the same DMTO (transfer tax ~6.3%), notary fees, and closing costs as French residents. No surcharges of any kind.
- 3 Financing available: French banks offer mortgages to non-residents at 60-70% LTV with fixed rates around 3.5-4.25%. Terms up to 25 years. French mortgages are typically fixed-rate (~90% of the market).
- 4 Anti-money laundering: Strict AML checks are conducted by the notary. You'll need to provide proof of funds, bank statements, and tax returns. All payments must be fully traceable.
- 5 CGT for non-residents: French rules can require appointing an accredited fiscal representative (représentant fiscal) when a non‑resident alien sells French property above an administrative threshold commonly cited around EUR 150,000 gross sale price — see impots.gouv guidance for exemptions (notably intra‑EU/EEA situations) and procedural detail.
Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for France.
- 5.00%
- 5%
- 2.0% p.a.
- 5.00%
- 4%
- 2.0% p.a.
- 6.00%
- 10%
- 2.0% p.a.
- 5.00%
- 30%
- 2.0% p.a.
Explore Other Markets
Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.
Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.
Use the free France ROI calculator →