France Property
If you think buying property in France is just for the rich and famous, think again. Although property in France can be expensive, anyone with a working knowledge of the French language and France’s real estate laws can become part of the land known for decadence and high living. The key though, is persistence—and a decent amount of money.Listings
There is no multiple listing service in France, so using an agent immobilier to assist with finding and purchasing a property. Although only 30% of French real estate transactions involve agents, foreign nationals may be better served to seek outside help rather than going it alone.
Price
Although French property can be desirable, it’s not always a bargain. As a result, buying property in France is more about a personal desire than netting a lot of cash from an investment. That’s not to say, though, that making money off of French real estate isn’t possible. Good deals can be found. However, anyone looking for a bargain should stay clear of Paris or southern regions, as they can—and will be—quite pricey. Those who find good deals, though, should still be cautious, as unexpected tax costs can add up rapidly.
Taxes
Residential, capitol gains, wealth, and property taxes can add up to quite a large amount of cash, leaving even the most frugal shoppers running low on cash. In addition, those who pay taxes late can count on incurring hefty fines—up to 10%. In addition, if you plan on spending a great deal of time at your new residence, you will be considered a resident of France, and subject to nearly 50% in various types of taxes.
Not sure why you’re being taxed or where your money goes? Below is a brief guide to taxes in France and their uses:
While each region allots property taxes to different functions, they are generally put towards trash removal and street lighting.
If your property has a rental value of 4,600 euros, on January 1st, count on paying residential taxes. Planning on selling or renting your property from January 2nd on? You’ll still be held accountable for paying the owed residential taxes, for the coming year, not the new owner or renter.
For the lucky few with incomes over 720,000, France charges a wealth tax. Those below this income level need not worry about paying wealth taxes.
French capitol gains taxes are difficult to navigate, but do count on paying them if you sell a second residence.
Although the French government has vowed to reduce income taxes by over 30% in the next three years, taxes in France are still substantially high. Looking for lower taxes? Paris has some of the lowest rates in the country, somewhat offsetting its higher real estate costs.
Financing
Those paying cash won’t have to worry about obtaining a mortgage. However non-nationals looking for mortgages in France must show proof of income and show that they will not put more than 30% of their income towards any and all mortgage payments.
It’s no question that France offers a beauty and flavor unparalleled in the world. And, while it can be pricey, those with enough information—and enough cash—can become part of this vibrant community.