France Buying Guide
I've created this France property guide to help you successfully navigate the process of buying property abroad.
France has it all: world-class cities, bucolic beauty, old-world charm, sun-drenched sands and alpine splendour. If you’ve fallen in love with this wonderfully diverse land, you might be considering purchasing a property there. Whether it’s a holiday home, a retirement retreat, or an investment opportunity, you’ll have to navigate an unfamiliar property market first – not to mention the language barrier and a different currency.
In this digestible guide, I’ll walk you through the French property buying process – including the costs, timescales and risks involved – so you’re equipped with the knowledge and understanding needed to make informed decisions at every stage.
This includes the potential for currency risk to wreck your budget if you leave the cost of your international payments exposed to unpredictable exchange rates. And how a currency specialist can help you secure the cost of your property.
You can achieve your dream of owning a property in one of Europe’s favourite expat and holiday destinations – read on to find out how.
Key questions: Why? How? What?
Inform your French property search by asking yourself some pertinent questions that will point you in the right direction.
Why are you buying in France?
A definitive answer to this question will provide you with clarity in the early stages of your property search. This could be anything from wanting to make memories on holiday with family and friends to investing in a cheaper property market.
How will you use the property?
You can start to narrow down your search once you confirm how you’ll use the property, as this will inform what you want from the local area – such as being near an airport for weekend breaks or rental potential or near an established expat community for retirement.
What’s your buying budget?
By establishing a realistic budget from the start, you can focus on affordable properties that meet your requirements rather than wasting time on those that don’t. As a rule, budget for at least 10% extra for buying costs, such as legal fees.
Remember to insulate your budget against exchange rate fluctuations. This currency risk could increase the cost of a property you love between making an offer and paying the final balance.
What are your non-negotiables?
Ascertain what’s top of your must-have list by answering questions like: Do you want to live in a coastal resort? How many bedrooms do you need? Do you want a swimming pool?
Visas
The French long-stay visa – la Visa Long Séjour valant Titre de Séjour (VLS-TS) – is the most common option when buying in France. The type of VLS-TS you must apply for is determined by your employment status and financial position. For instance, retirees must apply for the Visa de Long Séjour valant Titre de Séjour – visiteur. This permits them to reside in France between four months and one year, primarily for non-professional purposes.
If you plan on semi-retiring to France, the long-stay work visa is an option. This permits you to continue working while there or find a job after you move. You can’t apply for one more than three months in advance, and it’s only valid for up to a year. Therefore, if you’re considering moving to France permanently, you should eventually apply for residency.
The Talent Passport (Passeport Talent) is a multi-year residence permit introduced to attract highly skilled non-EU professionals, entrepreneurs, researchers, and artists to France. It allows holders to live and work there for an initial period of up to four years, with the possibility of renewal.
Get help from the experts
Don’t embark on your property purchase alone. Get the support you need to manage the practical, legal and financial elements by selecting a team of experts early in the process: estate agent, lawyer, independent financial adviser and currency specialist.
Estate agent
Choose an estate agent who’s registered with a regulatory body in France and has experience working with overseas buyers. This professional will partner with you to find a property that matches your requirements.
Lawyer
You will need the services of an English-speaking solicitor who specialises in property law. Make sure they belong to the local bar association and factor in their fees when establishing your budget.
Independent financial adviser (IFA)
An IFA can help you establish a budget, manage your tax requirements, and reduce your buying costs. Once you’ve moved in, they can also assist you with other financial requirements like pensions and life insurance. If you’re not a cash buyer, they might be able to help you find a reputable mortgage adviser as well.
Currency specialist
There’s another essential element of the overseas buying process: international payments – the value of which are exposed to fluctuating exchange rates. Under their influence, the price of your property will remain fixed in euros but constantly fluctuate in your home currency between your offer being accepted and completing – a notoriously protracted process.
Your exposure to this currency risk doesn’t end once you pick up the keys to your property in France; it will also impact the value of ongoing international payments like pension transfers and income transfers.
Don’t be daunted by the unpredictable economic and political variables that dictate the direction exchange rates move. A currency specialist will help you mitigate the impact of these fluctuations on the value of your payments using tools that allow you to secure a current exchange rate for future transfers, such as a forward contract – this locks in the price of your property until the time comes to pay weeks or even months in the future.
Buying costs
You can start planning for your buying costs once you’ve firmed up a couple of things: what type of property you want to buy (newbuild or resale) and whether you’re a cash buyer or need a mortgage. This will also be influenced by the purchase price.
Here’s a breakdown of the main property buying costs in France:
Notary Fees (Frais de Notaire)
You are legally obligated to engage the services of a notaire when purchasing property in France. They act as a neutral third party in the transaction, ensuring everything is done legally and both the buyer’s and seller’s interests are protected. This includes checking all the documentation and paying any taxes involved with the sale.
Their fees, which as the buyer you are obliged to pay, differ depending on the type of property you’re buying:
· Existing property: This is the most significant cost for buyers. These fees can range between 7-8% of the purchase price, depending on the region and the property.
· New property: Notary fees for new properties are lower, typically around 2-3% of the purchase price.
It’s common for the vendor and buyer to share a notaire, although you might choose to hire your own bilingual one. This does not increase the fees; they are shared by both notaries.
Estate agency fees
These are typically between 4-8% of the purchase price but can vary based on the agency and property type.
In France, the buyer and seller can negotiate who will pay these fees, or they may be included in the purchase price.
Registration fees
Included in the notary fees, this registration tax (taxe de publicité foncière) for the transfer of property ownership is similar to stamp duty and is around 4-5% of the purchase price.
Property survey costs
It is common, but not mandatory, to have a property survey conducted, particularly if you're buying an older property. This typically costs between €200 to €1,500, depending on the survey type.
Your viewing trip
Online research is a great place to start, but this convenience can’t replicate the tangible and emotional insight you gain from physically visiting a property and exploring the surrounding area – from testing the shower to walking to the shops.
With your search refined, it’s time to head to France on a viewing trip. Whether you want to be walked through the process by your agent or want to do it independently, these tips will help make it a success:
· Do your research: Maximise your time on your trip by using Google Streetview before you travel to rule out properties that lack curb appeal.
· Don’t rush: Plan to spend at least three days on your trip. When you’re not viewing properties, you will have enough time to explore the local area, speak to the locals and visit the amenities – and remember, you can always return for another trip.
· Avoid peak season: Avoid expensive flights, hotels, and crowds by visiting in the off-season to see what the area’s like when the tourists leave. You might also be able to negotiate a better price as demand will be lower. Check France's public holiday calendar so you don’t turn up and everything’s shuttered.
· Take pictures and videos: Use your smartphone to take photos and video clips of properties during your trip so you can refer to them when you get home.
· Find a local estate agent: This local property expert will help you find properties to view that match your budget and requirements – so you don’t waste any time.
· Have your deposit ready: Be prepared to secure your dream property by having enough euros available for a reservation deposit.
Register with a currency specialist when planning your budget so you’re ready to part with some cash on your viewing trip.
Making an offer
Having found a property on your viewing trip that ticks all the boxes, it’s time to make an offer. To give you the best chance of success, you should: ask your agent what’s an acceptable offer, act quickly and be prepared to make counter offers quickly. If it falls through don't worry you will find an even better property eventually.
Before you follow this advice, contact a currency specialist to check how the pound is performing against the euro.
The French buying system
Be prepared to encounter some differences to the property buying in your home country, so consult your English-speaking solicitor for guidance.
Let's walk through the typical process:
Bon de visite
You may be asked to sign a bon de visite if buying through an estate agent which obliges you to make an offer through them and not through another agent or the vendor. This normal practice is not a commitment to an actual purchase.
If you make an offer at the asking price, French law states that the vendor must accept it. This removes the risk of being gazumped or the need to haggle for a better price.
Contracts and the notaire
Once your offer is accepted, the notaire will draw up the contracts. They work for you and the vendor as well as acting on behalf of the French government.
The compromis de vente (preliminary sales agreement) is the legally binding part of the sale, although in France, a verbal agreement of sale is considered morally binding. This contract, which is similar to the exchange of contracts in the UK, includes essential details for both parties – from the price and names to provisional conditions, inventories, and penalty clauses. Consult your solicitor to make sure you understand its contents.
If you can’t be present to sign the preliminary sales agreement, the notaire can prepare a procuration (power of attorney), permitting them to do it on your behalf. Once signed by both parties, a ten-day cooling-off period begins. You can withdraw from the sale during this time without incurring any costs. After ten days, you will pay a deposit to the notaire, who will keep it in a secure account – this is typically 10% of the property price.
Work with a currency specialist to pay your deposit on time and cost-effectively. If you choose to back out now, you will lose your deposit, which will be passed to the vendor.
Suspensive clauses
Clauses suspensives (clauses) are included in the contract in case certain circumstances leave you unable or unwilling to proceed. If a clause is not satisfied, the sale is cancelled and the contract voided without you incurring penalties. These clauses are typically included in the preliminary sales agreement.
Common clauses include:
· Mortgage clause (clause suspensive de prêt): This stipulates that the sale is dependent on you obtaining financing, such as a mortgage loan. If you can’t secure the necessary financing within a specified period (usually around 45 to 60 days), you can forgo the purchase without penalty.
· Planning permission clause (clause suspensive d'obtention de permis de construire): This is included if you intend to make alterations to or develop the property. The sale depends on obtaining the required planning permissions within a set period, otherwise it’s cancelled.
· Notaire’s certificate clause (clause suspensive de la délivrance de l'attestation notariale): This allows you to cancel the sale if the notary fails to obtain certain documents, such as the deed of ownership or any legal documents that affect the property, such as zoning regulations or property boundaries.
Searches
Once the contract is signed, the notaire conducts searches on the property, which usually takes two to three months. This is a crucial step to ensure the property's legal standing and to avoid potential future disputes. These include:
· Title and ownership verification: This confirms that the seller holds clear title to the property, and there are no undisclosed claims or encumbrances. This includes checking for any third-party interests, such as easements or mortgages, that could affect the property's value or your use of it.
· Pre-emption rights: Local authorities have a right of first refusal (droit de préemption) on certain properties, especially in areas designated for urban development or conservation. The notaire checks with the local mairie (town hall) to ensure no such rights apply to your property.
· Land registry and boundary checks: This checks that the property's boundaries are clearly defined and match the land registry records. Discrepancies can lead to disputes with neighbours or local authorities.
· Environmental and safety compliance: For properties built before 1949, the notaire ensures that mandatory diagnostic reports (diagnostics immobiliers) are provided. These cover aspects like lead, asbestos, gas and electrical installations, and energy performance.
Completion
Once the searches are completed, the acte de vente (completion) is signed at the notaire’s office. You must ensure the outstanding funds are paid into the notaire’s client account at least three days before signing the document. As with the compromis de vente, a power of attorney can be arranged.
The notaire will pay the taxe fonciere – an annual property tax on the value of a property – on your behalf, which is due annually around October time for the following year. Therefore, you will reimburse the seller from the day you purchase the property.
You will receive an attestation of purchase, which serves as proof that you own the property, and the deeds will be sent to you several months after the purchase is completed.
You can now start making memories in your dream French property!
I hope this guide will help you on the path to buying a home safely and successfully in France.