Whether you’re moving to France for retirement, work or just to enjoy the French lifestyle, you’ve probably considered buying property to live in or as an investment.
Whether your destination of choice is Paris, Marseilles, Lyon or any smaller city in between, you’ll find a plethora of options in property for sale, ranging from massive estates to tiny apartments and undeveloped plots of land.
Around 64% of French residents own a home¹, which potentially means a market wide open for expats and foreign investors. And despite some tricky laws and taxes, many non-residents have taken the opportunity to buy into the European country.
So if you’ve decided to buy property, what should you know in advance? This guide will walk you through the steps and key points for buying property in France, from post-Brexit changes to the best places to buy. So, let’s get started.
What’s the property market like in France?
While France’s economy has been hit hard by the recent coronavirus crisis, like the rest of the world, it’s not all bad news - especially in terms of the housing market.
After a pause caused by Covid-19, property sales in France started to pick up in some areas throughout the second half of 2020. Some experts are predicting a 3.5% increase in house prices and continued growth in property sales, as the country and its economy starts to recover from the pandemic².
How easy is it to buy property in France as a foreigner?³
There are currently no restrictions on foreigners buying property in France, however, you may find the process a bit more difficult as a non-resident. This means quite a lot of paperwork and due diligence.
If you’re working with a real estate agent, the process is likely to be relatively straightforward. But you’ll still need to make sure you read up on what taxes you’ll need to pay, and any visas needed so you can live in your new French home once you’ve bought it.
Buying property in France after Brexit⁴
Even though the UK has now officially left the EU, you’ll still have the right to buy property in France as a non-EU citizen. You can even rent it out if you want to.
However, you will now need to make sure you have a long-stay visa if you plan to stay in France for more than 90 days at a time.
Can I buy property in France and get residency?
Unlike some other countries, France doesn’t have a ‘Golden Visa’ or other investment scheme for property purchases⁵. This means that although there aren’t restrictions on foreigners buying property, you’ll need to go through the same process as any other non-EU citizen to get a visa to live in France - and then to apply for permanent residency if you’re eligible.
How much does it cost to buy property in France?
The cost of property in France varies significantly based on the type of property and where it is.
The following table⁶ can give you an idea of what costs might be in select areas, so you can figure out the best places to buy property in France based on your budget. But you should also be prepared to do plenty of extra research into prices in your chosen locale.
| Location | Apartment price per sq.m - in city centre | Apartment price per sq.m - outside city centre |
|---|---|---|
| Paris | €13852 | €10335 |
| Nice | €6325 | €4725 |
| Antibes | €5125 | €4000 |
| Lyon | €5100 | €3057 |
| Toulouse | €4688 | €3043 |
| Nantes | €4288 | €2622 |
| Montpellier | €3660 | €2575 |
| Lille | €3220 | €2540 |
| Marseille | €3200 | €2530 |
How can I find a property in France?
Property agencies and agents
It’s fairly common to use a real estate agent (un agent immobilier) to find property in France, especially in more remote regions or if you don’t know the language well.
While the cost can feel prohibitive, in provinces where homes are more spread out and difficult to find, working with an agent is the only real way to ensure you’re seeing all of the properties available.
You might also be likely to get a fair price, as there’s always the risk of French sellers inflating prices for foreign buyers. That being said, it’s not uncommon for French agencies to take up to 8% of the total cost in fees (if not paid by the seller)⁷. So, if you’re on a budget trying to house hunt, doing it on your own may be the best course of action.
If you do decide to work with an agent, some of the most well-reputed in France include:
Property websites in France
If you’re planning to find your home without an agent, your first stop will probably be real estate websites or portals. Choosing this route can make a lot of financial sense, though the multitude of listings can make your head spin. If you do decide to search online, these sites can be a good place to start:
Buying property in France - pitfalls to avoid
No matter where you’re buying property, there’s a chance you could get ripped off. Scams are one of the biggest pitfalls to avoid when buying property in France.
The best way to steer clear of scams is to thoroughly research your agent, the property, the market in the surrounding area and what you’re entitled to as a buyer. Some common scams⁸ include outdated diagnostic reports for properties, sellers with no legal right to sell property (or who’ve ‘scraped’ the listing from a property portal and pass it off as their own) and fake property investment seminars which charge a high fee.
While there are many other scams out there, you can avoid many of them by visiting the property, meeting the seller or agent in person, and refusing to hand over any money before you have a verifiably working key and title in your hand. When traveling to inspect the property in person, you could save on your local travel spending using the Wise travel money card.
How do I choose the right property in France?
Property types
Realistically, the types of properties you’ll find across France vary significantly by location. While in Paris you may struggle to find any housing situation outside of an apartment, in the countryside you’ll be welcomed with plots of land, sprawling estates, villas, homes and townhouses.
What type of property you buy will depend on where you want to invest, and what makes the most sense for your family.
Condition of the property
In France, it's the seller’s legal responsibility to provide you with up to date diagnostic reports. Known collectively as the Dossier de Diagnostic Technique (DDT)⁹, these reports should cover everything from the presence of lead, asbestos and parasites to the condition of the septic system, the Performance Energy Report and the natural disaster risk.
Before you agree to buy any property, make sure you’ve received this report and have gone over it thoroughly with your agent.
The DDT doesn’t however cover the kind of comprehensive building survey that we have here in the UK. You’ll need to commission and pay for a full structural survey yourself if you have any concerns.
How to buy property in France as a foreigner - a step-by-step guide
If you’re ready to jump into the property market, the following steps can help give you a rough idea of where to get started¹⁰:
- Decide which region you'd like to live in.
- Set a budget based on similar properties in the region.
- Engage a real estate agent to help in your search, and consider a trip or two to France to view properties in person.
- Select your dream property.
- Carefully review the diagnostic report (Dossier de Diagnostic Technique or DDT).
- Make a verbal offer.
- Sign a compromis de vente - a preliminary agreement which locks both parties into the sale.
- Pay a deposit - this is usually 10% of the total purchase price¹⁰.
- Engage a notaire (lawyer) to perform the property searches, including the land registry, ownership rights, boundaries, and rights of way.
- Sign an acte de vente, the deed of sale contract at the notaire’s office.
- Enjoy your new property!
Can I get a mortgage from a French bank as a foreigner?
The good news is, there really aren’t any restrictions for expats hoping to buy property in France - mortgages included. While the exact rules and taxes around getting a mortgage may vary slightly for foreigners, all in all the process is the same as for residents.
In fact, because foreigners buying French property are so common, most national and international banks cater to the service. The only real restriction you may face is the amount you can borrow, as some lenders will only lend up to 50% of the property’s value to non-EU citizens¹¹.
Most banks will have English-speaking representatives to help you, but it may be a good idea to hire a professional translator anyway, as getting a mortgage isn't a process you want lost in translation.
If you’re already sitting on enough cash to put down your deposit in your foreign bank account, you may be able to pay the seller directly. If this is the case, it’s a good idea to look into Wise to get the real exchange rate and cut down on international transfer fees.
Taxes and fees
There are a number of fees involved with French property purchases, for estate agents, notaries, lawyers and other charges.
Here’s a summary of the kinds of costs you can expect to pay when buying property in France⁷:
- Estate agent fees (when not paid by the seller) - 5-8%
- Stamp duty (Droit de mutation) - 5.8%
- Mortgage fees (if using a French bank) - 1% arrangement fee, plus €250 for a valuation survey¹².
- Notaire fees (charged by the government): on a sliding scale depending on the total purchase price⁷:
| Purchase price | Notaire rate |
|---|---|
| €0 to €6,500 | 3.945% |
| €6,500 to €17,000 | 1.627% |
| €17,000 to 60,000 | 1.085% |
| €60,000+ | 0.814% |
And even before buying property in France, tax is one of the most crucial things to factor into your budget. There are two types of tax on residential property in France - land tax (taxe foncière) and local taxes (taxe d’habitation). These are both due on 1st January each year.
Taxe foncière is based on the annual rental value of the property multiplied by a percentage set by the local commune. It’s around 1% if the property is your main residence, and up to 3% for second homes. Taxe d’habitation is only due on second properties, and depends on local rates along with the size and condition of the property¹³.
Paying for your French property from abroad? Save money with a secure Wise transfer
If you’re buying your French home while still in the UK, you’ll need a secure, low cost way to send money overseas. You’ll have things like estate agent fees and mortgage arrangement costs to cover, not to mention your initial deposit.
Banks tend to charge high fees for international transfers, and there’s usually a mark-up on the exchange rate that ends up costing you a bundle.
Use the Wise multi-currency account instead and you can send money to France for small fees and the real, mid-market exchange rate. In fact, it could turn out up to 7x cheaper than using your bank.
Security is always a concern when sending such large sums of money overseas. But you don’t need to worry with Wise, as we’re FCA regulated and use advanced security and anti-fraud measures to keep your money safe. You can even track all your transfers, so you can see for yourself that the money arrives safely.
Join Wise today
Once you’ve considered all the most important points of buying property, from location and property type to fees, taxes and other costs - you’re ready to get started in your search. Good luck buying property in France!
Sources used for this article:
Sources checked on 15-July-2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
FAQs
Is buying a property in France difficult? ›
Luckily, the process of purchasing a home in France isn't as difficult as you might expect. With a bit of background knowledge of the French property market and the right estate agent, there's no reason why you can't make your dreams of owning a French country home in Dordogne or an apartment in Paris.
Can I buy property in France as a foreigner? ›There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID.
What are the pitfalls of buying property in France? ›- Purchasing property with incorrect documentation (e.g. planning permission certificates)
- Misinterpreting the costs of renovations and additional fees.
- Signing contracts with a poor understanding of French law.
- Falling for sellers with no legal right to sell a property.
Portugal is the easiest European country to buy property in. Those who wish to purchase property in Europe can purchase commercial property under Portugal's Golden Visa scheme.
Are French property prices falling? ›As for Paris specifically, prices are increasing at a lower rate than the other parts of the country. The real estate firm Meilleurs Agents released data showing that as of September 6th, 2022, real estate prices in Paris had decreased by 1.2 percent in one year.
How long can I stay in France if I own a house? ›Specific case of owners of second homes in France :
If you spend more than 6 months a year in France, you are then considered as a French resident and must apply for a Long Stay visitor visa (visa de long séjour valant titre de séjour VLS-TS « visiteur »).
Although foreign buyers have no restrictions on buying a property in France, if you are not an EU citizen, then you will have to apply for a visa/residency if you intend to stay in your property for more than 90 days.
Can I get French residency by buying property? ›French citizenship by investment
A French passport can not be obtained by investment, but the country has a residence permit program. Investors over 18 with an official source of income and no criminal record can participate in the residence permit program.
Stamp duty is a tax on buying a house. In French, it's known as droit de mutation. The rate of stamp duty varies slightly between the departments of France, and depending on the age of the property. For properties more than 5 years old, stamp duty is 5.8%, or 5.08% in some departments.
Is property tax in France expensive? ›When you own a Paris property, you pay your building dues, the wealth tax (if your property exceeds 1.3 million euros) and the two main taxes on its rental value: the taxe d'habitation and the taxe fonciere. The rates for these are set locally, and Paris' are currently . 1 to . 3% – among the lowest in the world.
Why is property so cheap in rural France? ›
Rural Depopulation
With so much rural and suburban land, low population and people relocating in droves, tons of houses and properties are left unoccupied and ready to be bought — often at a bargain.
DOMINICA
Dominica established its citizenship-by-investment program in 1993. There are two options for citizenship-by-investment in Dominica. Investors can get full citizenship for themselves and their family.
Greece. You can get a Greek Golden Visa by purchasing real estate worth at least €250,000 or another type of investment. Although there is no required minimum stay to renew the visa, if you want to acquire citizenship, you have to live in Greece for seven years.
What is the best country in Europe to buy property? ›- Paris, France. The charm of Paris is undeniable. ...
- Valletta, Malta. Malta is a First World jewel of three islands in the Mediterranean that's a quick plane ride away from most of Europe. ...
- Limassol, Cyprus. ...
- Davos, Switzerland. ...
- Milan, Italy. ...
- Lagos, Portugal. ...
- Valencia, Spain. ...
- Krakow, Poland.
House prices in France are forecast to grow by 3.5% during 2022. The latest statistics show that property prices in France rose by an average of +5.9% during 2021 (+5.0% for apartments and +6.8% for houses).
Which is the cheapest area of France to buy property? ›- CREUSE. The cheapest department in France, Creuse offers an average property price of €660/m², ranging from €400/m² to €940/m². ...
- HAUTE-MARNE. ...
- NIÈVRE. ...
- MEUSE. ...
- INDRE.
Admittedly, the rise in prices of old real estate slowed in the second quarter of 2022 with an increase of 6.8% year on year, against +7.3% in the first quarter and +7.1% in the last quarter of 2021, according to the Notaires-INSEE index.
What are some weaknesses of France? ›- Insufficient number of exporting companies, loss of competitiveness and market share.
- Weakening of the product range, insufficient innovation efforts.
- Low employment rate of young people and senior citizens.
- Room for improving the efficiency of public spending.
- High public debt.
- Growing private debt.
- Strasbourg, France.
- Toulouse, France.
- Lyon, France.
- Le Havre, France.
- Montpellier, France.
- Marseille, France.
- Paris, France.
- Nice, France.
They are fleeing conflict, violence, persecution, discrimination or, increasingly, climate-related pressures. Their journey to safety is commonly dangerous, life-threatening and often traumatising. They want to find a place of safety where they can rebuild their lives. They have a protected right to do so.
Can I buy a house in France and live there permanently? ›
You are able to purchase a home in France to use as your second home, or as your permanent residence if you obtain the right to live in the country.
How much deposit do I need to buy a house in France? ›Funding: how much deposit is required for a French mortgage? To get an overseas mortgage in France you'll need a minimum of 15% deposit. If you're borrowing from an international lender, expect to pay slightly more on a deposit for a mortgage in France – between 70-80% LTV.
Why are so many houses abandoned in France? ›Indeed, one of the reasons why there are so many vacant homes in France is because of French inheritance laws that divide an estate between the heirs, and a family feud between them prevents any early resolution. It may also be difficult (impossible) to trace one or more of the owners.
How much income do I need for French residency? ›The minimum monthly earnings requirements has therefore increased from nothing to €1,329 net income per month for a single person and around €2,658 net income per month for a couple.
Why is property so cheap in France? ›France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.
Do I need a French bank account to buy a house in France? ›Travel to France is not necessary to open your French bank account however you will need to provide certified identification in most cases. Further, it's not necessary to open a bank account at the same time you make an offer to buy a French property.
What is a golden visa in France? ›France Offers Entrepreneur Visa
France currently offers an entrepreneur visa for foreign business owners investing a “sufficient amount” of capital in innovative start-up businesses. The programme was announced by President Francois Hollande in April 2013.
If you arrive in France from 2023 onwards (on a long stay visitor visa) and you decide that you want to live permanently in France, then you are still able to apply for French Residency.
Where is the cheapest place to live in France? ›- Montpellier. For those who love to live in a lively city, Montpellier is a popular and surprisingly affordable city located in the South of France. ...
- Grenoble. ...
- Nantes. ...
- Châteauroux. ...
- Dordogne. ...
- Tarn. ...
- Cantal.
How to make an offer on a French property. Headlines advising buyers to offer 30% under the asking price might occasionally be true but generally they're wide of the mark. Most deals are agreed much closer to the advertised price.
How does buying a house in France work? ›
There are three common ownership methods in France: en indivision, en tontine or through a Société Civile Immobilière (SCI). If you're buying with someone else (e.g. your partner), you must buy on a joint basis to protect the interests of both parties.
Do you pay VAT on French property? ›The VAT rate is generally 20%, however, it is possible to obtain a reduced rate of 5.5% for the purchase of a property (new buildings, building land, sales in future state of completion, construction operations) in ANRU zone (urban development and renovation zone) or in QPV (priority districts of the city policy).
How can I avoid property taxes in France? ›Finally, this is a tax that people can effectively choose to pay, or not. If you do not wish to pay it, the solution is simple: elect to sell property, so as to have net property assets valued under the €1,300,000 threshold.
Are there yearly property taxes in France? ›The French taxe foncière is an annual property ownership tax which is payable in October every year. It is payable by the individual who owns the property on the 1st January of the same year and is applicable whether you live in your property or rent it out.
How much tax do you pay on a second home in France? ›The capital gain generated after the sale of a second home is taxed on income tax at a rate of 19% after deduction, depending on the length of time the property is held. If the age exceeds 22, the owner will be exempt.
What is the poorest town in France? ›Grigny, a southern suburb of Paris (pictured below), is reportedly the poorest commune in France, with a poverty rate of 44.8 percent, three times higher than the national average.
Is it better to rent or buy in France? ›Renting a house or apartment in France is much more common than buying, especially among expats. It is likely your best option if your stay is temporary, as buying property can be very costly.
Where is the best place to live in France? ›- Paris: Best for nightlife.
- Brittany: Best for its affordability.
- Lyon: Best for food and drink.
- Montpellier: Best for families.
- Luberon: Best for countryside.
- Dordogne: Best for retirement.
- Provence: Best for beaches.
The fastest way of getting a second passport is participating in the St Kitts and Nevis or Vanuatu citizenship by investment program. The obtaining period is 2 months. In Vanuatu, it's easier to pass the Due Diligence check, but a St Kitts and Nevis passport provides more benefits.
Which country in Europe is easiest to get citizenship? ›Malta. Malta has one of the speediest routes to citizenship of the country and by extension the EU, with a fast-track program enabling citizenship within one year in return for an investment of at least 750,000 Euros into government programs, government bonds or donation to an approved organisation.
What is the easiest EU country to get permanent residency? ›
- Permanent residency in Cyprus.
- Permanent residency in Greece.
- Permanent Residency in Malta.
- Permanent Residency in Portugal.
- Permanent Residency in Hungary.
Portugal is the easiest European country to buy property in. Those who wish to purchase property in Europe can purchase commercial property under Portugal's Golden Visa scheme.
Which country sells citizenship? ›Grenada asks for a minimum basic donation of around USD 150,000 in any of the government-approved real estate projects. The processing time of the application is three months and provides visa-free travel to 153 destinations around the world. The citizenship program at Grenada was launched back in 2013.
Which country is the easiest to get citizenship? ›Italian citizenship by descent is one of the easiest to obtain. You may be eligible for citizenship if you have Italian heritage. To acquire citizenship, you must have an ancestor who was a citizen of Italy on March 17th, 1861 or was born in the country after that.
What is the most expensive country to live in Europe? ›...
Consumer prices in Ireland are a staggering 40% above the EU average, behind only Denmark.
- Florence, Italy. The capital of Italy's region of Tuscany is commonly regarded as one of the most beautiful cities in the world. ...
- Vienna, Austria. ...
- Edinburgh, Scotland. ...
- Prague, Czech Republic. ...
- Munich, Germany. ...
- Bruges, Belgium. ...
- Verona, Italy. ...
- Annecy, France.
30 countries where buying a home will get you a passport
Which European countries give permanent residency by buying a ...
The six countries where buying a home protects your EU rights
Thirdly, certain areas of France have a unique double rental market, of summer holiday rentals and long winter lets. This creates rental yields higher than central London, Paris, Dublin and Amsterdam. Finally, over the next 10 years, demand for housing, especially in the South of France is expected to grow rapidly.
How long does it take to buy a property in France? ›The period between the signature of the preliminary contract and the final deed (which means signature of the final notarised deed and payment of the full price, plus notary costs and agency commission fees) is usually around 2 to 4 months. This can be accelerated with the agreement of all parties.
Is it worth buying a house in France? ›The French property market has proved to be remarkably resilient to the Covid-19 health crisis, with property prices forecast to continue rising by +3.5% during 2022. High rental yields - taking advantage of the unique high rental yields in the South of France, your investment will pay off within 15 years.
Why are properties in France so cheap? ›
France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.
Is it better to rent or buy in France? ›Renting a house or apartment in France is much more common than buying, especially among expats. It is likely your best option if your stay is temporary, as buying property can be very costly.
What taxes do you pay when buying a house in France? ›Stamp duty is a tax on buying a house. In French, it's known as droit de mutation. The rate of stamp duty varies slightly between the departments of France, and depending on the age of the property. For properties more than 5 years old, stamp duty is 5.8%, or 5.08% in some departments.
Is property tax in France expensive? ›When you own a Paris property, you pay your building dues, the wealth tax (if your property exceeds 1.3 million euros) and the two main taxes on its rental value: the taxe d'habitation and the taxe fonciere. The rates for these are set locally, and Paris' are currently . 1 to . 3% – among the lowest in the world.
How long can you stay in France if you own a property there? ›The temporary long-stay visa is valid for up to a year, although it is typically issued for stays of between four to six months (remember, if you plan to spend longer than six months in France, it is likely that you will be classed as living in France for tax purposes).
Does buying a house in France gives you residency? ›Although foreign buyers have no restrictions on buying a property in France, if you are not an EU citizen, then you will have to apply for a visa/residency if you intend to stay in your property for more than 90 days.
How much deposit is needed to buy a house in France? ›A deposit of 5% to 10% of the purchase price is usually required. It's common to pay the deposit when the contract is signed.
How much income do you need to retire in France? ›The France visa service requires evidence that you have income or funds of at least equivalent to the French minimum wage (salaire minimum interprofessionnel de croissance – SMIC). In 2022, the SMIC is €19,237 a year before deductions for tax and social contributions.
Where is the cheapest place to live in France? ›- Montpellier. For those who love to live in a lively city, Montpellier is a popular and surprisingly affordable city located in the South of France. ...
- Grenoble. ...
- Nantes. ...
- Châteauroux. ...
- Dordogne. ...
- Tarn. ...
- Cantal.
Travel to France is not necessary to open your French bank account however you will need to provide certified identification in most cases. Further, it's not necessary to open a bank account at the same time you make an offer to buy a French property.
Is living in France worth it? ›
Not only is France an excellent place to work and live, but it is also an excellent place to retire. It is one of the most beautiful and refined European countries, with a perfect climate, delectable cuisine, and a culture that pulls you all in.
Can you negotiate house price in France? ›How to make an offer on a French property. Headlines advising buyers to offer 30% under the asking price might occasionally be true but generally they're wide of the mark. Most deals are agreed much closer to the advertised price.
Where is the best place to live in France? ›- Paris: Best for nightlife.
- Brittany: Best for its affordability.
- Lyon: Best for food and drink.
- Montpellier: Best for families.
- Luberon: Best for countryside.
- Dordogne: Best for retirement.
- Provence: Best for beaches.
