How to Buy a Property in France

In France, there are no restrictions for foreign citizens to purchase real estate. The purchase process is identical for residents and non-residents. Foreigners can buy real estate in France on the same terms as citizens. It is possible to purchase residential and commercial properties for an individual or a legal entity.

There are several stages and pitfalls of buying real estate in France:

1. Choice of property and method of payment

The first step is to determine the main search criteria by choosing the city, district, property size and budget. Tranio makes this easy by promptly providing a selection of personalised options based on the buyer’s preferences.

It is also important to decide on how to pay for the purchase. The buyer can choose to use their own funds or borrow from a French bank.

French mortgage rates range from 1.5% to 2% per annum and non-residents are usually offered 50–60% LTV loans. For this reason, the buyer’s own funds must cover at least 40% of the purchase price.

If the buyer decides to purchase property on a loan, they will be required to consult a mortgage expert and submit several documents to the bank.

Required documents include:

• passport;
• copy of marriage or divorce certificate;
• pre-sale property contract;
• personal income tax returns for the last two years and payslips for the last three months;
• employment contract (for employees);
• articles of incorporation and balance sheets for the last three years (for entrepreneurs);
• bank statements for the last three months;
• proof of extra income (from leased property or bank deposits);
• property ownership certificate and utility bills (for non-EU citizens);
• redemption tables for all existing loans (if applicable);
• tax returns.

After all the documents have been submitted, the bank considers the potential borrower’s application. This procedure can take three to six months in France. Therefore, the option of purchasing off-plan property is worth considering as, in most cases, developers are more cooperative than owners of existing property and are willing to wait for the buyer’s loan to be sanctioned.

2. Conclusion of a preliminary contract

The preliminary agreement (compromis de vente) guarantees the buyer that the property will not be sold to anyone else. It also assures the seller that the buyer will go through with the transaction. After the document notarisation, the buyer makes a down payment of 5–10% of the property price. This deposit is transferred to the notary, who is the financial guarantor of the agreement.

In case the buyer’s mortgage application is formally rejected by the bank, the buyer does not lose their deposit.

3. Checking the technical condition of the property

The notary requests the property title and the property is then checked for any differences between the real and advertised spaces, utility connections in disrepair, signs of termite infestation, lead and asbestos, and so on.

The buyer and the notary assure themselves that the property has no encumbrances and fully meets quality standards.

The inspection of the property's technical condition takes about 10 weeks. During this period, the buyer pays the remaining amount as per the invoice issued by the notary. This payment is exclusive of the prepaid deposit. By the time of signing the main agreement, the total transaction amount must be received by the notary's account.

4. Conclusion of the main sales agreement

After everything has been checked, the transaction day is decided. The buyer and seller sign the main agreement (acte authentique de vente), which is drawn up in French in the presence of the notary, a court interpreter and a real estate agent. The right of property ownership is then transferred to the buyer.

If the buyer is unable to sign the agreement on site or transfer the right of signature to the notary, they may do so remotely. A power of attorney must be issued to the buyer's representative and translated officially to the buyer's language. The original documents must then be sent via an international courier service. Translation costs are extra.

5. Registering real estate in the mortgage registry

After the conclusion of the sale, the notary must register the new ownership within a few days. When the transaction is completed, the buyer receives a copy of the agreement and the property title (titre de propriété).

6. Property insurance

According to French law, property of any type must be insured. The notary must see to this when the transaction is completed and the new owner receives the property.

7. Opening an account with a French bank

This account is used to pay the utility bills and annual property tax for the newly purchased property.

Taxes and fees

When buying a new build, property registration costs are about 2.5% of the transaction amount. These include state duties, taxes, due diligence costs and the notary fee.

When purchasing an existing property, the buyer pays about 7.5% of its price in notarial expenses. These also include state duties, taxes, due diligence costs and the notary fee.

Renewal of Energy Certificates (DPE): From 2025, it is mandatory to update the DPE for all facilities for sale if the previous certificate was issued before July 2021.

Declaration of Ownership: Starting in January 2023, residential property owners are required to file a declaration in accordance with Article 1418 of the French Tax Code.

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