Find Out How to Buy Property in France as a Non-Resident!
France has long been one of the most coveted destinations for property buyers around the world, and in 2023 more than 320,000 people decided to make it their home. With the promise of sunshine, France offers a unique blend of charm, luxury, and accessibility that few other European countries can rival.
Whether you are drawn to the beauty of the French Riviera, the vineyards of Bordeaux, or the sophistication of Paris, France presents a wide variety of property options that will cater to all tastes, budgets and lifestyles, making it the perfect location for those looking to buy property abroad.
In this blog, we discuss everything you need to know about purchasing property in France as a non-resident, including the buying process, financial requirements, tax obligations, and key tips for navigating the French real estate market.
Table of Contents:
- Top Reasons to Buy Property in France for Non-Residents
- The French Property Market: A Brief Overview
- Can Non-Residents Buy Property in France?
- Financial Considerations for Non-Residents Buying Property in France
- Tax Implications for Non-Residents Buying Property in France
- Other Key Considerations for Non-Residents Buying in France
- Buying Property in France: A Summary
Top Reasons to Buy Property in France for Non-Residents
1. Lifestyle
One of the main reasons France stands out in Europe's property market is its enviable lifestyle. Infamous for its eloquent culture, France provides residents with access to world-class cuisine, art, fashion, and historical sites that embody centuries of European civilization.
Whether it's exploring medieval castles, sipping wine in Provence, or strolling through the iconic boulevards of Paris, the quality of life in France is incomparable. This versatility in lifestyle, paired with France's excellent infrastructure, healthcare, and education system, makes it a top destination for both retirees seeking tranquillity and those looking to buy property in a desirable location.
2. Location
France has a diverse geography, offering property buyers the opportunity to live in a range of locations. From alpine skiing in the French Alps to coastal living in Normandy or the Mediterranean, means that potential property buyers can choose from a range of climates and environments to suit their preferences.
Additionally, France's excellent connectivity to the rest of Europe, and the world, adds to positive reasons to have a property there. With high-speed rail networks, extensive highways, and international airports in nearly every region, France is easy to navigate, both for daily commuting and for international travel.
3. Cost of Living
The cost of living in France varies significantly based on factors like housing, groceries, healthcare, and transportation. Housing costs, particularly in major cities, tend to be higher in France.
For instance, Paris is more expensive than most UK cities outside of London, with rent and property prices being a major factor. London is one of the few cities in Europe more expensive than Paris, however, other major French cities like Lyon, Nice, and Marseille tend to have lower housing costs than their UK counterparts such as Manchester or Edinburgh.
Groceries in France are typically slightly cheaper, especially for fresh produce, bread, and wine, thanks to the local agricultural production and market structure. Dining out in France can be more expensive, especially in tourist-heavy areas however, like most cities in the UK, there are many affordable options available.
Healthcare is another area of difference: France's universal healthcare system offers high-quality services at low out-of-pocket costs, making medical expenses significantly lower than in the private sector in the UK.
Overall, while day-to-day living costs in France can be higher in some areas, lower healthcare and cheaper grocery items balance out the expenses.
4. Cuisine
It's no secret that French cuisine is one of the best in the world, and is often considered the most sophisticated and influential gastronomy globally.
At the heart of French cooking is the use of fresh, local ingredients, such as herbs like thyme, tarragon, and rosemary, which play a pivotal role in the seasoning of French food. The cuisine is also marked by its regional variations.
In the North of France, butter, cream, and apples dominate dishes like Coq au Cidre, while in the South of France, olive oil, tomatoes, and garlic are central to Mediterranean-inspired meals like ratatouille and bouillabaisse, a traditional fish stew from Provence.
Meals often include a wine pairing, reflecting the deep integration of food and drink in French culture. French culinary traditions are so significant that "the gastronomic meal of the French" was added to UNESCO's list of Intangible Cultural Heritage in 2010.
5. Culture
France is renowned for its contributions to art, from the Gothic cathedrals of the Middle Ages to the impressionist masterpieces of painters like Claude Monet and Edouard Manet.
Paris, the cultural epicentre, has long attracted writers, intellectuals, and artists, earning the city its nickname, "The City of Light".
French society values intellectual discourse, secularism, and a balance between work and leisure.
French literature and philosophy have also left their mark on global thought, with figures such as Voltaire, Jean-Paul Sartre, and Simone de Beauvoir influencing modern ideas on human rights and feminism.
As already mentioned, cuisine is a big part of France and its culture as well, bringing together a way of tradition, a form of art and a social connection with people.
Finally, for those who love fashion, France has it in abundance, being home to globally influential fashion houses like Chanel, Dior, and Louis Vuitton.
The French Property Market: A Brief Overview
France offers something for every type of buyer. Whether you're interested in a chic Parisian apartment, a quaint farmhouse in the Loire Valley, or a luxury villa on the coast, the country has a wide variety of properties that cater to different tastes and budgets.
Before diving into the logistics of purchasing, it's essential to understand the French property market.
The market tends to be stable, with strong demand in areas such as Paris and Provence, where property prices can be high. However, other regions, such as Brittany, Normandy, or the Auvergne, offer more affordable options for buyers looking for a rural escape.
Below is a summary of the average property prices per square metre in France, as of the start of 2024:
Property Prices in Different Regions
| Region/City | Average Price (/㎡) | Property Type |
|---|---|---|
| Paris | €9,980 - €15,000 / £8,361 - £12,567 | Apartments |
| Ile-de-France (Paris Suburbs) | €5,100 - €7,370 / £4,273 - £6,175 | Houses |
| Lyon | €4,710 / £3,946 | Houses |
| Toulon | €4,585 / £3,841 | Houses |
| Côte d’Azur (Nice/Cannes) | €5,100 + / £4,272 | Apartments and Villas |
| Corsica | €5,000 / £4,189 | Houses |
| Rouen | €2,500 / £2,095 | Houses |
| Limoges | €1,600 / £1,340 | Houses |
| Poitiers | €1,950 / £1,633 | Houses |
| Châteauroux | €1,350 / £1,131 | Houses |
You should be aware that property prices will fluctuate based on location and property type. For example, property prices in Paris can reach over €15,000 per square metre in high-demand areas (e.g. the 15th and 16th arrondissements).
However, in the suburbs of Paris, or Ile-de-France, prices drop to around €5,100 per square metre. We advise you to do some research before deciding where you would like to buy property as there are many factors to consider!
Can Non-Residents Buy Property in France?
Yes, non-residents can purchase property in France without restrictions.
You do not need to be a French resident to own property, but important legal and financial steps are involved in the purchase process.
Finding a Property in France
Working with a licensed real estate agent (agent immobilier) is the most common way to find property in France.
Real estate agents are heavily regulated, and they must be licensed and insured, ensuring a level of professionalism. Additionally, many properties are sold through notaire, legal professionals who handle property transactions and ensure the process complies with French law.
It's important to thoroughly research the market in the area you're interested in, and it can be helpful to visit France multiple times to view properties in person. Property prices in France are generally negotiable, so it's worth discussing this with your agent or the seller.
Making an Offer for a French Property
Once you've found a property, the first step in the legal process is to make a formal offer. If the seller accepts, both parties sign a Compromis de Vente, which is a preliminary sales contract. This document outlines the terms of the sale, including the sale price, any conditions of the sale (such as securing a mortgage), and a timeline for completion.
At this stage, you will be required to pay a deposit of around 5-10% (potentially more for non-residents) of the property's selling price. After signing the Compromis de Vente there is a 10-day cooling-off period during which you can withdraw from the contract without penalty. After this period, the contract becomes legally binding.
Due Diligence and the Role of the Notaire
In France, property transactions must be overseen by a notaire, a government-appointed legal professional responsible for ensuring the sale complies with French law.
The notary's role is crucial, as they perform due diligence on the property, including checking for any outstanding debts, verifying property boundaries, and ensuring the seller has the right to sell the property.
The notaire will also handle the registration of the property with the French land registry.
It is important to note that the notaire acts impartially; their duty is to the state, not to the buyer or seller.
Like many international buyers in France, you may choose to hire a legal representative in addition to the notaire to provide independent legal advice.
Finalising the Sale
Once all checks are complete, the final step in the process is signing the Acte de Vente or deed of sale. At this point, the remaining balance of the purchase price is paid, along with the notaire's fees and taxes, and the buyer receives the keys to the property. The signing of the Acte de Vente usually takes place at the notary's office.
Financial Considerations for Non-Residents Buying Property in France
Financing Your French Property Purchase
Non-residents can obtain mortgages from French banks, though the process can be more complex compared to French residents.
Typically, banks require a deposit of 20-30% of the purchase price, and lending terms may be more conservative for non-residents looking to buy property in France. Interest rates in France are generally lower than in many other countries, which can be advantageous for international buyers.
It's worth considering both French and international mortgage providers, as rates and terms may vary. Additionally, some buyers opt to purchase their overseas property outright, avoiding the complexities of securing a mortgage.
Additional Costs When Buying Property in France
Beyond the purchase price, there are other costs associated with buying property in France, including:
- Notaire's Fees: These are typically around 6-8% of the property price, covering the notaire's services and various taxes and registration costs.
- Agency Fees: If you buy through a real estate agent, their commission (often around 5-6%) is typically included in the sale price but should be clarified upfront.
- Property Taxes: France has two main property taxes: Taxe Fonciere (property ownership tax) and Taxe D'habitation (residence tax). These taxes vary depending on the property and region within France.
Tax Implications for Non-Residents Buying Property in France
As a non-resident, it's essential to understand the tax implications of owning property in France.
France taxes both property ownership and income generated from rental properties.
Income Tax (from renting your French property)
If you plan to rent out your property, you will need to pay income tax on the rental income in France, regardless of your residency status.
Non-residents are generally taxed at a flat rate of 20%, but this can vary based on international tax treaties.
Capital Gains Tax (something to keep in mind)
If you have bought a property in France and will look to sell it in the future, as a non-resident you will be subject to Capital Gains Tax.
EU residents can benefit from a tapered relief system, where the tax reduces the longer the property is held. Non-EU residents, however, face a flat Capital Gains Tax rate of 19%, plus additional social charges.
Wealth Tax
France also has a wealth tax on property, known as the Impot sur la Fortune Immobiliere (IFI), which applies to property owners with total real estate assets exceeding €1.3 million.
We highly recommend that, if you are a non-resident buyer, you consult with a tax advisor who is familiar with both French and international tax law to ensure they meet all obligations and take advantage of any relevant tax treaties.
Key Considerations for Non-Residents Buying in France
Hire a Local Professional Team
Navigating French property laws, taxes, and the buying process can be complex.
Hiring a local lawyer, real estate agent, and tax advisor who understands the needs of non-resident buyers is essential for a smooth transaction.
Understand the Impact of Currency Exchange Rates
If you are purchasing in Euros but your primary income is in another currency, fluctuations in exchange rates can affect your budget.
At EasyFX we pride ourselves on helping customers navigate through the process of transferring money to France to purchase their dream French property.
Unlike high-street banks, we don't add on any transfer fees and will work to find a favourable exchange rate, that can potentially save clients thousands on international property purchases.
If you want to get the most value out of your foreign exchange requirements then get in touch with our team of experts today who are always able to help.
Plan for Maintenance and Management
If you are not planning to live in the property full-time, think about how you will manage it from abroad. Many buyers hire local property management companies to handle maintenance, rentals, and upkeep.
Research the Local Market
France's property market can vary significantly by region. Do thorough research on property values, rental demand (if applicable), and long-term growth potential in your chosen area.
Buying Property in France as a Non-Resident: A Summary
To summarise, buying property in France as a non-resident is not only possible but can be an enriching experience, whether you're seeking a vacation home, an investment, or a permanent move.
With diverse regions offering everything from charming countryside cottages to luxurious Riviera villas, there's truly something for every taste and budget. France's strong legal framework ensures that foreign buyers are well-protected, and while navigating French bureaucracy can sometimes be challenging, professional support from the notaries and real estate agents can make the process much smoother.
Owning a property in France is more than just a financial investment, it's a gateway to experiencing the country's rich culture, history, and lifestyle firsthand. So, whether you dream of a Parisian apartment or a Provencal retreat, France warmly welcomes non-residents to explore its property market!
Make Buying Your Dream French Property, Easy.
With over 20 years experience of supporting customers with property purchases worldwide and in France, the team at EasyFX can help you make your dreams of owning a French home, a reality.
Unlike high-street banks, we're experts in foreign exchange, and our dedicated account managers are here to support and guide you through the process.
Our aim is to provide you with a competitive exchange rate for your significant international money transfers with no added-on transfer fees, potentially saving you thousands on your property purchase in France.
As an FCA and FINTRAC-authorised and regulated Electronic Money Institution, your money will always be secure and safe in segregated client accounts.
We have helped over 40,000+ happy customers make their foreign exchange for purchasing property overseas, Easy.
If you'd like to discuss your international property requirements, or any international money transfer needs, with a real, personal currency exchange broker, then please get a free transfer quote today or contact us directly, our team are waiting to help!
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