top of page
Search

Frequently asked questions about real estate property in France as a non-resident.

  • Writer: Maxence Toulouse
    Maxence Toulouse
  • Oct 25, 2024
  • 7 min read

Updated: Oct 28, 2024

Do you want to buy, manage, sell or bequeath real estate in France? Discover many answers to your questions here with the French agency Iddyl Property.

house or appartment in France

General questions about buying real estate in France as a foreigner

Is it possible for a non-resident to buy a property in France?

Of course, regardless of nationality, anyone can buy property in France.

Are there any restrictions for non-residents wishing to buy property in France?

There are no restrictions. Non-residents have the same rights as French citizens when buying property in France. However, sellers are sometimes reluctant to sell their property to a foreigner, thinking that the administrative process will be slower. That is why it is important to be supported by a real estate specialist for non-residents, to remove any doubts sellers may have.

What types of property are available to foreigners in France?

The same as for French citizens. House, apartment, farm or even building, you have the same rights as French citizens.

Do I need a visa to buy property in France?

You don't need a visa to buy property in France. However, certain non-European nationalities do need a visa to enter France. It is possible to buy property in France without a visa.

Does buying property in France allow you to obtain French residency?

Buying a property in France can entitle you to French residency, but it's not enough to have a home in France to be French. There are other criteria involved, and you can find more information on the French embassy website.

Questions about financing the purchase of real estate in France

Can I get a mortgage in France as a non-resident?

It is entirely possible to get a mortgage in France as a non-resident, the real estate agency Iddyl Property works with mortgage brokers who are specialized in mortgage applications for non-residents.

What are the eligibility criteria for getting a mortgage in France as a foreigner?

The criteria are fairly strict: it's better to be a salaried employee than a company director, and it's important to have an input, a stable situation and a fixed income.

Do I have to pay a higher input as a non-resident?

Financial institutions assume that they will take more risk in financing a non-resident than a French citizen in their real estate project. So, to counterbalance these risks, they will ask you to make a downpayment of around 40% of the total cost of the project.

What financing options are available to non-resident?

There are 3 financing options for a non-resident to buy a property in France :

  • Financing the project with cash from your personal contribution (the most common) ;

  • Apply for a mortgage in France ;

  • Apply for a mortgage in your home country.

Do French banks require insurance for mortgages granted to non-residents?

Yes, whether you're a non-resident or a French resident, banks require you to take out insurance to secure repayment of the loan in the event of an accident or insolvency.

Questions about taxes and taxation in French real estate

What taxes will I have to pay as a non-resident property owner in France?

You'll pay the property taxes that all homeowners pay in France. You'll also pay « taxe d'habitation » if your residence in France is not your principal residence. These amounts vary according to the location of your property, its surface area and its value. If your assets in France exceed €1,300,000, you may be subject to property wealth tax (impôt sur la fortune immobilière - IFI).

What are the taxes applicable to the rental of a property by a non-resident?

Even if you are a non-resident, you will still pay taxes in France if you earn money in France. So if you rent out your home in France, you'll be taxed on your rental income. Rates vary according to the amount of your income and the rental method you choose. Iddyl Property works with specialist tax lawyers for non-residents.

Is there double taxation between France and my country of origin?

In most cases, agreements are in place between France and your country of origin to ensure that you are not taxed twice on your rental income in France. A tax lawyer with whom Iddyl Property works will be able to advise you on the agreements between countries.

How do I declare my rental income in France if I live abroad?

You can declare your income on the French tax website www.impots.gouv.fr. There is a special section for non-residents on the website.

What are the tax obligations for non-residents when selling a property?

Tax obligations are the same for non-residents as for French citizens. If your residence in France is your second home, you will be taxed on the capital gain. The tax percentage depends on the number of years you've owned the property. If your home is your principal residence, you will not pay capital gains tax.

Questions about the real estate search process

What are the steps involved in buying a property in France?

First, we define your project together and sign a search mandate which allows Iddyl Property to represent you in France. Secondly, we visit properties and you make an offer. Once all the documents have been checked and the offer accepted by the sellers, we sign a preliminary sales agreement at the notary's office. It takes around 3 months for the notary to deal with all the administrative formalities before you can sign the final deed of sale and become the owner of your home in France.


Find out more about how Iddyl Property finds your future home.

Do I need a notaire to buy property in France?

Yes, a notaire is essential in the process of buying and selling a property in France. The notary verifies the deeds of ownership, easements, etc., and secures and formalizes the sale.

What administrative formalities are required for non-residents?

You must be able to prove your identity and the origin of the funds to the notary in France. If you are married, you must also provide proof of your marriage certificate and the state in which you were married. Finally, you must also provide your birth certificate.

How long does it take to buy property in France?

The whole process usually takes between 3 and 6 months.

What are the associated costs (notary fees, taxes, etc.)?

Acquisition costs represent between 8 and 10% of the value of the property.

Questions about property ownership and management in France

Can I rent out my property if I don't live in France?

You can rent out your property if you don't live in France. Many real estate agencies are specialized in short or long-term rentals. Iddyl Property can help you with all the formalities.

How can I pay my bills and charges remotely?

The best way to pay your bills and charges as a homeowner from a remote location is to open a bank account in France and have your bills, charges and taxes domiciled in your French bank account.

Can I carry out renovation work on a property purchased in France?

You can carry out renovation work, and Iddyl Property will help you find the right contractors.

Questions about legal and juridical aspects

Do I need to consult a lawyer before buying a property in France?

You don't need to consult a lawyer. In France, it's the notary who protects your interests when buying property, but you can always consult a lawyer who specializes in non-resident taxation. Iddyl Property works with a specialist lawyer.

What happens if I don't meet my legal obligations as a non-resident owner?

Like all taxpayers, you are liable for taxes and charges on your property in France. If you fail to meet your payment obligations, your creditors will initiate proceedings to legally compel you to meet your obligations.

What are the legal risks involved in buying a property in France for a non-resident?

There are no legal risks involved in buying a property in France for a non-resident, as long as you are properly accompanied. The real estate agent and the notary are there to ensure that the transaction runs smoothly. As a non-resident, the formalities may take longer, but there are no more risks than for a French citizen.

Questions about selling a home in France

What are the tax obligations if I decide to sell my property in France?

Tax obligations are the same for non-residents as for French citizens. If your residence in France is your second home, you will be taxed on the capital gain. The tax percentage depends on the number of years you've owned the property. If your home is your principal residence, you will not pay capital gains tax.

What selling costs and taxes will I have to pay as a non-resident?

The seller pays practically no fees whether you are a non-resident or a French resident. The fees of the real estate agency selling your property are often paid by the buyer. The purchase costs are paid by the buyer, and all the seller has to do is to close the contracts signed for the property (water, electricity, gas, insurance, etc.).

Is it easy to sell a property in France as a non-resident?

It's just as easy to sell a property in France for a non-resident as for a French citizen. There are no additional formalities.

Do I have to be present in France to sell my property?

You don't have to be present for either the purchase or the sale. You can ask the notary representing you to sign a power of attorney so that the notary can represent you at the sale and sign on your behalf.

Questions about insurance when buying real estate

What insurance cover is compulsory for a non-resident homeowner in France?

Whether you are a non-resident or a French citizen, you are obliged to insure your home. You won't be able to sign at the notary's if you don't hand over your home insurance certificate on the day of signing. The certificate must be renewed every year.

Can I take out home insurance in France as a foreigner?

Yes, you must take out home insurance in France. You can pay by credit card or bank transfer. If you have a bank account in France, the insurance company can also deduct the payments directly from your account.

Questions about Inheritance tax in France

How does inheritance tax work in France for non-residents?

In terms of inheritance, it is the law where the property is located that applies. French law will apply, unless a tax treaty has been drawn up with your country of residence. You should contact a notary specialized in inheritance tax in France, whom Iddyl Property can introduce you to.

What inheritance taxes apply to non-residents in France?

Inheritance tax on real estate depends on the value of the taxable share, which is calculated by the French government. The amount of the tax varies between 5% and 45% of the value of the property in France.

Can I donate on my property to my children or other heirs as a non-resident?

It is possible to make a donation of your property to your children during your lifetime. This reduces the amount of inheritance tax due on the resale of your property.

Do you have any other questions about real estate in France?

 
 
 

Comments


bottom of page
Blogarama - Blog Directory