In this article we discuss what additional payments will need to be made when buying an apartment in France and after it, as well as how to reduce these expenses.
Registration of the transaction
Notary
The main role in the registration process is played by a notary, whose participation is mandatory. They are responsible for the intermediary of the buyer and seller, conclude a preliminary agreement (compromis de vente), under which the buyer must pay a guarantee fee of 5-10% of the property value. The contract is valid for three months, during which the notary checks the legal purity of the transaction and calculates the expenses. They include:
registration fees (approximately 5.8% of the transaction amount),
fee for publishing the transaction announcement (0.7%),
fixed notary fee (1-4%, the exact amount depends on the value of the property and is determined by the scale established by law),
professional notary fee for additional help.
The approximate amount of expenses for each case can be calculated independently using the online calculator on the website of the National Housing Agency.
How to pay less? Notarization is required by law, therefore you cannot reduce or exclude costs of it. However, you can try to negotiate with the seller about sharing the amount.
Agent’s fee
Contacting a real estate agency can remove most of the hassle, but it will cost another 1-7%.
How to pay less?
Seymur BALAMMADOV
Partner
ASTEY
The participation of a realtor is not mandatory in France, but it can significantly simplify the search and negotiation process. But you should not consider the realtor as a security guarantor of the transaction. The responsibility for checking documents, establishing property rights and encumbrances, as well as making entries in the state register is on the notary. For this purpose, they may request additional documents, such as proof of the origin of funds.
Mortgage
When applying for a mortgage, add three more types of payments to the list of expenses:
a bank commission for processing documents – €500 - €1,000;
a loan interest: the average interest rate was 1.18% by October, 2019;
loan insurance: its rate may exceed the amount of basic interest.
How to pay less? If you really need a loan, carefully study all the details of the mortgage program.
There are three other ways to reduce real estate expenses by reducing tax deductions.
Tax on accommodation (Taxe d'habitation)
A specific French tax that was introduced in 1974. In 2016, its average size was €1,097 per year. Its cancellation began step by step from 2018, because it was one of the main election promises of the current president Emmanuel Macron. By 2022, the payment should be fully canceled; currently, benefits for certain categories are set at 30% for 2018, 65% for 2019, and 100% for 2020.
So, a married couple without children, if their total income for 2019 did not exceed €43,000, in 2020 can expect a 100% tax reduction for the main place of residence. A so-called regressive reduction is also possible: if the income of the same couple for 2019 did not exceed €45,000, they can individually calculate the percentage by which the tax will be reduced.
If the tax notification is mistakenly sent without taking into account the benefits, the owner can submit a request (réclamation) for recalculation within the stipulated time. The deadline for submitting it expires on December 31 of the year following the tax collection year. For example, for tax in 2018, the application deadline expired on December 31, 2019.
Property tax (taxe foncière)
Seymur BALAMMADOV
Partner
ASTEY
In France, remission of taxes is possible to exempt from paying real estate tax by 50% or 100% for 5 years for taxpayers who carry out energy-saving works in their homes built before 1989 for at least €10,000. The installation of heating monitoring devices or other energy-saving equipment is counted as well.
Remission for two years can also be obtained for newly built housing. In this case, you must contact the tax service within 90 days from the date of completion of construction.
If the property is rented out, the owner must pay income tax. When buying slum dwelling for renovation, you can get a discount under the Denormandie program, which operates in some French cities. Two conditions must be met:
repair costs take at least 25% of the cost of purchased housing,
long-term rental after restoration.
The amount of the benefit depends on the term of the lease agreement:
6-9 years – 12%,
9-12 years – 18%,
from 12 years – 21%.
For example, if the transaction amount is €200,000, the cost of repairs must be at least €50,000. Then when you sign a 12-year lease, the benefit will be €4,375 per year.
What you can buy in France right now:
1 098 000 €
Flat in 17th arrondissement of Paris, France
102 sq.m432
Rental property
A lovely 4 bedroom apartment in the historic Auteuil quarter, which has been completely renovated to combine 19th century charm with modern comfort. The apartment is located on the third floor and is accessible through a beautiful front door. It is also equipped with an elevator, providing convenience and accessibility.
This apartment offers a...
Victoria Gaillard sarl
1 990 000 €
Villa in Nice, France
338 sq.m1287
Credit
NICE CIMIEZ: A magnificent Belle Epoque style house with an area of 338 m2 + a plot of 1225 m2, located in the Cimiez quarter.
The first level consists of a large lobby, from which the entrance to the reception rooms, a large main hall, a dining room and an adjacent office/library.
There are so many spaces flooded with light, with access to...
IMMOPS, Groupe AVS
790 000 €
Apartment in Nice, France
140 sq.m532
Credit
NICE. 5-room apartment located in the Cimiez area, in one of the most beautiful Belle Epoque residences in Nice.
The building, built in 1906, is the work of the most famous architect of the time: Sebastian Marcel BASINI, who also built the famous Regina.
The apartment has an area of 139.65 m2 and includes: an entrance hall, a kitchen, a...
IMMOPS, Groupe AVS
570 000 €
Apartment in Cannes, France
120 sq.m432
Cannes. A 4-room apartment with sea views is located in a luxury residence in the Croix des Gardes quarter of Croix de Garde).
Top floor, spectacular view of the Bay of Cannes. You will appreciate the peace and quiet of this secure luxury residence. A real quiet harbor, you can take advantage of all its amenities: a park, a swimming pool with...
IMMOPS, Groupe AVS
346 000 €
Apartment in Saint-Raphael, France
92 sq.m321
Remote TransactionCredit
Saint-Raphael
the 3-room apartment is located in a luxury residence under construction and guarded, 10 minutes from the sea
Area 78 m2+ terrace 14.7 m2
Floor: 2
Due date: September 2021
Price : 346,000 euros
IMMOPS, Groupe AVS
630 000 €
Apartment in Nice, France
95 sq.m321
THE CENTER OF NICE, THE GOLDEN SQUARE
The perfect location,
On the famous Boulevard Victor Hugo, in the city center, close to shops and in close proximity to tram lines 1 and 2 (quick access to the port and airport)
A 3-room apartment of 80 m2 + terrace is located in a luxurious gated community with gardens and a courtyard, with an...
IMMOPS, Groupe AVS
490 000 €
Apartment in Villefranche-sur-Mer, France
101 sq.m321
Remote TransactionCredit
Villefranche-sur-Mer
3-room apartment with an open sea view, with an area of 84 m2 + a terrace of 17 m2
located within walking distance to the beach.
Large living room + 2 bedrooms. Sunny side
IMMOPS, Groupe AVS
390 000 €
Apartment in Antibes, France
80 sq.m311
Credit
Antibes Juan-les-Pins combines the charm of a historic city and the amenities of a modern and well-equipped seaside resort. It is conveniently located 12 km** from Cannes and 18 km** from Nice International Airport.
Thanks to its upscale location, the residence offers its residents the double advantage of enjoying the tranquility of a...
IMMOPS, Groupe AVS
497 000 €
Apartment in Cannes, France
104 sq.m432
Remote TransactionCredit
Cannes. a 4-room apartment of 104 m2 with sea views is located in a comfortable residence in the style of bourgeois
High ceilings
Elevator, concierge
IMMOPS, Groupe AVS
495 000 €
Apartment in Nice, France
90 sq.m322
3-room apartment with an area of 84 m2 + a balcony of 6 m2 + a basement is located by the sea in a beautiful Art Deco building of the 1930s, near the Promenade des Anglais and the city center, a spacious 3-room apartment with high ceilings. It consists of an entrance hall, a living room, a balcony with sea views, a separate kitchen, 2 bedrooms,...
IMMOPS, Groupe AVS
295 000 €
Apartment in Nice, France
40 sq.m211
Credit
NICE. GOLDEN SQUARE. PEDESTRIAN ZONE - a 2-room apartment of 38 m2 located in a fully renovated residence on the 4th floor with an elevator
It consists of an entrance hall, a modern shower room with a separate toilet, a kitchen, a living room, an air conditioner. The repair is done with a 10-year warranty.
IMMOPS, Groupe AVS
225 000 €
Apartment Aix-les-Bains, France
78 sq.m321
Rental property
Aix-les-Bains, a new program located in a green area, close to shops, supermarkets, schools and a few minutes from the city center.
This 3-room apartment with an area of 68 m2 + a terrace of 11 m2 + a basement + a garage consists of : 2 bedrooms, a bathroom, a separate toilet and a living room with access to the terrace. A large storage room...
IMMOPS, Groupe AVS
890 000 €
Apartment in Cannes, France
122 sq.m432
Cannes. A 4-room apartment with panoramic sea views and an area of 105 m2 + a terrace of 17 m2 is located in an elite residential area next to the beach.
Living room of 32 m2 + 3 bedrooms, 2 bathrooms, toilets: 2
elevator, concierge
IMMOPS, Groupe AVS
210 000 €
Apartment in Cagnes-sur-Mer, France
57 sq.m211
Remote TransactionCredit
Cagnes-sur-Mer, a 2-room apartment with an area of 45 m2 + a terrace of 12 m2 located in a guarded residence with a swimming pool
Floor: 4/4, elevator
IMMOPS, Groupe AVS
770 000 €
Apartment in Nice, France
132 sq.m532
Credit
Nice, Golden Square, in a renovated palace, next to the sea, very beautiful 5-room apartment of 125 m2 + balcony in very good condition,
Double salon + 3 flaps, bathrooms: 2 Basement
Floor: 5/6
IMMOPS, Groupe AVS
410 000 €
Apartment in Nice, France
60 sq.m212
Nice. PROMENADE DES ANGLAIS. In an elite house with a concierge, near Negresco, we offer a very beautiful 2-room apartment with an area of 55 m2. It consists of an entrance hall, a living room with access to a terrace of 5 m2 with a beautiful view of the sea, a fully equipped semi-open kitchen, a bedroom with wardrobes, a shower room with...
IMMOPS, Groupe AVS
611 000 €
Apartment in Eze, France
105 sq.m321
Credit
The luxury residence under construction is located near Monaco, overlooking the peninsula of Saint-Jean-Cap-Ferrat, on the hill of the historic town of Eze with its medieval alleys, picturesque shops and art galleries.
This prestigious program, located on the seashore just 8 kilometers from the Principality, is characterized by a very...
IMMOPS, Groupe AVS
850 000 €
Apartment in Nice, France
126 sq.m432
Credit
A unique 4-room apartment with sea view in a luxury residence on English Boulevard, in excellent condition, with an area of 91 m2 + 2 terraces of 21.20 m2, and 13.70 m2. The residence includes a garden and fountains. The apartment consists of a huge open living room with an area of more than 45 m2, three bedrooms, one of which is combined with a...
IMMOPS, Groupe AVS
658 000 €
Apartment in Nice, France
110 sq.m422
NICE, Golden Square
The 4-room apartment is located in an old building in the Belle Epoque style. Area 102 m2 + balcony + separate maid's room
bathrooms: 2, toilets: 2
Floor: 3/5
IMMOPS, Groupe AVS
473 000 €
Apartment Aix-les-Bains, France
86 sq.m321
a 3-room apartment with an area of 72.28 m2 + a terrace of 13.50 m2 with an open view of the Dent du Sha mountain and the theater is located in a modern residence of the 2018 building in the very center of the city, next to the pedestrian zone
Salon + 2 oil seals, bathroom, separate WC
floor:2, garage
electric blinds and individual gas...