12. House Buying Fees and Taxes in France

1. 12.1. Notaire Fees
   12.2. House Buying Taxes
   12.3. Calculating Charges
   12.4. Reducing Charges

12.2. House Buying Taxes on French Property

Inevitably, the main house buying costs are the land registration taxes and other local taxes that are payable.

In the case of a residential property less than 5 years old, and being sold for the first time, VAT at the rate of 19.6% is payable, which is included in the sale price. No registration taxes are payable, other than stamp duty at the rate of 0.7%.

VAT may also be payable on any extensions or annexes which may have been constructed on an older property. This will only apply where the work was completed within the last 5 years, and the property is being sold for the first time since completion of the works. Where this occurs, on the sale of the whole property the separate parts would be taxed differently.

It is also possible for an older property to be considered liable for VAT on first sale within 5 years if the tax authority consider that there has been major reconstruction of the property, which has, in effect, created a new dwelling. This might, therefore, apply in the case of the sale of a previously derelict property, the majority of which had been reconstructed.

In the case of building land the usual registration taxes of 5.09% are payable, but there is no VAT payable for a residential property, although you will pay VAT on the construction costs.

If a mortgage is being obtained for the purchase then you should budget for around 2% of the loan in fees and costs, to include registration costs, the additional professional fees of the notaire (0.26%) and the lenders fee.

In the next section we show you a tool to help you calculate the total fees and taxes that are payable in the housing buying process in France.