12. House Buying Fees and Taxes in France
12.2. House Buying Taxes on French Property
In the previous section we considered the notaire fees that are payable on house purchase.
On this page we summarise the stamp duty land registration taxes and other local taxes that are payable.
The taxes that are payable depends on the type of property your are buying.
i. Older Property
There is some variation in the level of the taxes depending on the department in which the property is situated. In the overwhelming majority of departments the taxes amount to 5.80% of the purchase price. In a very small number a lower rate of 5.09% applies. The notaire can advise you on the rate in your department.
A lower rate applies in relation to division of property between existing owners, such as a divorce or inheritance, when the rate is 2.50%.
ii. Off-Plan Property
In the case of off-plan properties (Vente en l’état futur d’achèvement - VEFA) VAT at the rate of 20% is payable, which is added to the basic purchase price.
It is likely the advertised price of such properties will be 'TTC' (Toutes Taxes Comprises). That is to say 'all taxes included', but you need to make sure before you agree the price.
Stamp duty costs are lower, at the rate of 0.7%, instead of the standard rate.
iii. New Property
The same applies to new property under five years old being sold to you by a registered property professional, such as a developer or dealer.
Once again the property may well be advertised 'TTC', but you need to check with the seller.
In such cases you pay VAT at 20% on the purchase price, but stamp duty at the rate of 0.7%.
The sale of new property under five years old between private individuals is not subject to VAT, although the usual stamp duty of 5.80%/5.09% is payable.
iv. Building Land
In the case of building land, for sales between private individuals the usual registration taxes of 5.80%/5.09% are payable.
If the building land is being sold to you by a property professional (developer, dealer) then VAT at the rate of 20% is payable, although you will pay reduced stamp duty of 0.7%, provided you commit to build within 5 years.
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.
Next: Calculation of Charges
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