Buying Property in France: What It Actually Costs

DMTO (Droits de Mutation)

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.

What You'll Pay at Transfer

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

These fees apply whether you're paying cash or taking out a bond.

Bond registration fees (only if you're taking a bond)

If 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.

Your Monthly and Annual Costs as an Owner

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.

• Taxe 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.

  annual
  Typically escalates ~2% per year
• Taxe 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.

  annual
  Typically escalates ~2% per year
• Building 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.

  annual
  Typically escalates ~3% per year
• Maintenance & Repairs

  Annual budget for ongoing repairs and maintenance. Typically 0.5-1% of property value per year.

  annual
  Typically escalates ~3% per year

When You Sell: Capital Gains Tax

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.

Costs of Selling Your Property

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.

Buying Property in France as a Foreign National

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: When selling, non-EU residents may need to appoint a tax representative (fiscal representative) for properties sold above EUR 150,000. EU/EEA residents are exempt from this requirement.

Which Property Type Is Right for You?

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.