Answers to questions on buying and selling real estate in France

For real estate buyers
Questions about buying real estate in France
Can a foreigner buy real estate in France?
Yes, there are no restrictions on foreigners buying commercial or residential property in France. They become full owners of their property.
What is the process of buying a property in France?

Step-by-step guide to the homebuying process :

  1. Select properties and ask to organise viewing
  2. Visit selected properties and choose a home to buy
  3. Have the house inspected and ask for energy performance rating
  4. Make an offer. Present it to the seller and reach agreement on the price.
  5. Sign a promise deed – Compromis de vente 
  6. Make a down payment of 5-10% of the sale price
  7. Consider your financial options, ask for mortgage
  8. Wait for the notary to check the transaction cleanliness
  9. Pay a 100 % of the amount
  10. Sign a sale deed and get the keys to your new home
  11. Get legal documents, registered in the French Land Registry, from the notary
  12. Register utilities and insurance policies of your new home in your name

Learn more about the buying process

What documents are required to purchase property in France?

To acquire real estate in France, the buyer must provide a standard set of documents to the notary handling the transaction.

  • a valid passport or national identity card,
  • recent proof of residential address,
  • documentation confirming marital status.

In addition, supporting evidence of the origin of funds may be requested by the bank or the notary in order to comply with French anti-money laundering regulations. 

When the acquisition is made through a legal entity, such as a Société Civile Immobilière (SCI), the company’s constitutional documents and registration certificates will also be required. 

All documentation is submitted directly to the notary, who is responsible for drafting the deed of sale, securing the funds, and ensuring the full legal compliance and integrity of the transaction.


How long does a property purchase take in France?

On average, a real estate transaction in France is completed within approximately two to three months.
This timeframe is primarily required for: 

  • mandatory legal due diligence,
  • preparation of contractual documentation by the notary,
  • arrangement and approval of mortgage financing ( if applicable).
In certain situations — such as a cash purchase without bank financing or when all documentation is readily available — the completion period may be shorter.

For a detailed overview of each stage of the process, please refer to our guide: Buying Property in France — A Step-by-Step Guide
Is it possible to purchase property remotely ?
Yes. A real estate acquisition in France can be completed entirely remotely through a notarised power of attorney.

In such a case, you are not required to travel to France in person. Your appointed representative will sign the necessary documents before the notary on your behalf, and the purchase funds are transferred directly to the notary’s escrow account. 

This is a standard and widely used procedure for international buyers, ensuring both legal security and practical flexibility throughout the transaction.
What is an offre d’achat?
An offre d’achat is a written purchase offer submitted by a buyer to acquire a property at a specified price. It represents the negotiation stage between the buyer and the seller.
Upon receipt of the offer, the owner may

  • accept it
  • reject it, or
  • issue a counter-offer proposing a different price or revised terms.
Once both parties reach agreement on the price and principal conditions, the preliminary sale agreement is prepared — either a Compromis de vente or a Promesse de vente — formalising the terms of the transaction prior to completion before the notary.

What is a compromis de vente?
A compromis de vente is the preliminary sales agreement between the buyer and the seller.
It sets out key details of the transaction, including :

  • the property price
  • terms and conditions of the sale
  • deadlines for signing the final deed
  • any exit clauses (clauses suspensives) that allow the parties to withdraw under specific circumstances.
Once the compromis de vente is signed, the agreement becomes legally binding for both parties, marking a formal commitment to proceed with the purchase.

What deposit is required when signing the compromis de vente?
Typically, the deposit ranges from 5% to 10% of the property’s purchase price.

The deposit is transferred to the notary’s escrow account rather than directly to the seller. It is credited toward the total purchase price and remains securely held until the signing of the final deed of sale.

Can a purchase be cancelled after signing the preliminary agreement?
For the seller, the answer is no.

For the buyer, yes — a legal cooling-off period of 10 days applies after signing the preliminary agreement (Compromis de vente or Promesse de vente).

During this 10-day period,
the buyer can withdraw from the purchase without providing any reason and will receive a full refund of the deposit.

After the cooling-off period,
cancellation is only possible under conditions specified in the contract, such as mortgage refusal by the bank. If the buyer withdraws without a valid contractual reason, the seller is entitled to retain the deposit as compensation.
What is the difference between a Compromis de vente and a Promesse de vente?
Both documents are preliminary sales agreements, but they carry distinct legal implications.

A Compromis de vente binds both the buyer and the seller. Both parties are considered committed to the transaction, and if either party withdraws without a valid reason, penalties may apply. This is the most commonly used form of preliminary agreement in France. 

A Promesse de vente, on the other hand, binds only the seller. The seller agrees to reserve the property for the buyer, while the buyer has the right — but is not obligated — to complete the purchase. For this right, the buyer usually pays a reservation deposit (indemnité d’immobilisation). 

I
n both cases, the buyer retains a legal 10-day cooling-off period after signing, during which they can cancel the agreement without penalty.
What are the additional costs when buying property in France?

Additional purchase costs typically amount to around 7–8% of the purchase price for resale properties and approximately 2% for new-build properties.

These costs include notary fees and government taxes. There may also be extra expenses for real estate agency fees and mortgage arrangements, depending on the transaction.

For a detailed breakdown, see our guide: Notary Fees and Taxes When Buying Property in France

Who chooses the notary — the buyer or the seller?

Either party can select the notary, whether it is the buyer or the seller.

If both parties wish to appoint their own notary, two notaries can be involved in the transaction. This does not generate additional costs, as the notary fees are shared between them, and the overall price for the client remains unchanged.

Both notaries work together to ensure the full legal security and integrity of the sale.

Is it possible to negotiate the price of a property in France?
Yes, negotiation is both common and entirely normal in France.

Price discussions usually take place through the offre d’achat:  
  • the buyer submits an offer, and 
  • the seller may accept it, reject it, or make a counter-offer.
The scope of negotiation depends on factors such as market conditions, the seller’s situation, the property’s condition, the urgency of the sale, and whether the initial asking price is realistic.

In some cases, the negotiation margin is minimal, while in others, a significant discount may be achievable.
What property inspections are mandatory before purchase?
In France, the seller is required to provide a set of compulsory technical reports before the sale.

These inspections typically cover : 

  • energy efficiency (DPE)
  • presence of asbestos, lead, or termites (depending on the property’s type and age)
  • condition of electrical and gas installations
  • environmental risks (flooding, seismic activity, etc.)
  • state of the sewage system
All reports must be delivered to the buyer prior to signing the preliminary agreement and form an essential part of the transaction. 

For a detailed overview, see our guide: Property Sales in France: Mandatory Technical Inspections
What are property diagnostic reports (DPE, asbestos, lead, etc.)?
Diagnostic reports are mandatory technical inspections that the seller must provide to the buyer.

They typically include information on the property’s energy performance (DPE), the presence of asbestos (amiante), lead (plomb), the condition of electrical and gas installations, and potential natural or man-made risks.

These reports inform the buyer about the state of the property but do not constitute a guarantee of its perfect condition.

For a detailed overview, see our guide: Property Sales in France: Mandatory Technical Inspections
What is the final deed of sale (Acte de vente)?
The Acte de vente is the official notarial deed that formally completes the property transaction. It is signed before the notary and constitutes the definitive transfer of ownership.

At the time of signing :
  • the buyer pays the remaining balance of the purchase price
  • the seller receives the funds
  • the keys are handed over to the buyer
  • the transfer of title is officially registered with the French Land Registry.
From the moment the Acte de vente is executed, the buyer becomes the full legal owner of the property.
When does the buyer become the full legal owner?
The buyer becomes the legal owner on the day the final deed of sale (Acte de vente) is signed before the notary.

From that exact moment, ownership is officially transferred to the buyer, the keys are handed over, and the buyer assumes all rights and obligations associated with the property.

Is it possible to purchase property through a company?
Yes. In France, real estate can be acquired not only in a personal name but also through a corporate structure.
The most commonly used vehicle is the SCI (Société Civile Immobilière), a civil property-holding company widely adopted for real estate ownership.

Purchasing through a company structure may be advantageous for :
  • joint ownership arrangements
  • estate and succession planning
  • facilitating the management and transfer of shares
The appropriate structure depends on the objectives of the acquisition and the buyer’s tax situation; therefore, the choice should be assessed on a case-by-case basis.

For further guidance, please refer to our article: SCI or SCP — Which Structure to Choose for Property Ownership in France?

What is the difference between resale property and a new-build?
Resale property refers to real estate that has already been owned and previously occupied. 
A new-build property is newly constructed and purchased directly from the developer.

The principal differences are financial, technical, and practical :
  • New-build properties benefit from reduced notary fees and comply with the latest construction and energy efficiency standards. 
  • Resale properties are typically available for immediate occupancy and are often located in more established and central areas. 
  • A resale property may require renovation or modernization, whereas a new-build is delivered in turnkey condition.
The choice ultimately depends on the buyer’s objectives, budget, investment strategy, and desired timeframe.
How is payment made when purchasing property in France?
In France, payment for real estate is always carried out through the notary.

The procedure is structured as follows: 
  • the buyer transfers the full purchase amount to the notary’s dedicated secure escrow account
  • funds are never transferred directly to the seller
  • on the day of signing the final deed (Acte de vente), the notary releases the funds to the seller and simultaneously registers the transfer of ownership with the Land Registry
This is the only legally recognised and fully secure method of completing a property payment in France.

What is "closed sales," "off-market," Private listing?
In France, many owners of luxury properties do not want to put their properties in the public domain for advertising and trust one or more agencies ONLY on a confidential basis. Such properties are called «off-market». Want to get information on properties that you can’t find on the web? Leave a request and a member of our staff will contact you to introduce you to off-market properties.
What criteria should I look for in a house to resell it easily?
First, the location. The closer it is to the sea - the easier it is to resell. Sea view is one of the most important criteria. Preferably south, south-east, south-west facing. Safe neighborhood and close to public transportation. Year of construction and quality of finishes and amenities. Average annual maintenance cost. The best resale neighborhoods are : Saint-Jean-Cap-Ferrat, Cap d’Antibes, Cannes Croisette, Nice Promenade des Anglais, as well as Monaco neighborhoods : Beaulieu, Eze, Cap d'Ail, Roquebrune-Cap-Martin.
How much does your agency charge for a personalized property search?
Free of charge. Agency fee is paid by the Seller. If you haven't found a home that meets your criteria in our listings, contact us! Thanks to our network of real estate partners, we'll find the best home for you. All real estate agents in France work together and share their listings as well as their commission on sales. Thus, the buyer is free of commission charges and the seller pays the same commission amount regardless of the number of agents involved in the transaction.
For property sellers
Questions about selling real estate in France
What documents are required to sell property in France?

To complete a property sale in France, the notary will require a standard set of documents, including:

  • valid identification of the owner;

  • the title deed (acte de propriété);

  • the most recent property tax notice (taxe foncière);

  • details of any outstanding mortgage, if applicable;

  • the seller’s bank details;

  • documents relating to the residence or property management company (for apartments).

In addition, a full set of mandatory technical diagnostics must be provided (energy performance, electricity, gas, risk assessments, etc.).

The exact list may vary slightly depending on the type of property and the seller’s personal situation, but the notary will request the core documents at the outset of the transaction.

What documents are required to sign a sales mandate with an agency?

To sign a sales mandate (mandat de vente), agencies usually require:

  • valid identification of the owner;

  • the title deed (acte de propriété);

  • the most recent property tax notice (taxe foncière);

  • details of co-owners, if the property is jointly owned;

  • residence-related documents (for apartments).

If the owner is a company (such as an SCI), corporate documentation and details of the legal representative will also be required.

This documentation allows the agency to prepare the mandate correctly and begin marketing the property efficiently.

Which mandatory diagnostics must be completed before selling?

Before selling property in France, the seller must provide a Technical Diagnostic File (Dossier de Diagnostic Technique – DDT).

This file generally includes:

  • Energy Performance Certificate (DPE);

  • asbestos inspection (amiante);

  • lead inspection (plomb);

  • electrical and gas safety reports (if installations are more than 15 years old);

  • natural and environmental risk report (ERP);

  • termite inspection (in certain regions).

The exact diagnostics required depend on the type of property, its year of construction and its location. All diagnostics must be completed before signing the preliminary sale agreement.

Learn more here: Selling Property in France: Which Diagnostics Are Mandatory

How much does it cost to sell property in France?

The main costs borne by the seller when selling property in France are:

  • agency commission — typically around 5–6% of the sale price;

  • mandatory diagnostics — approximately €300 to €800, depending on the property;

  • capital gains tax, if applicable.

If the property is the seller’s primary residence, capital gains tax is generally not applicable.

In most cases, the seller’s main expenses are the agency commission and any potential capital gains tax.

Why do agency commissions vary, and is there a legal limit?

Real-estate agency commissions in France are not regulated by law, and there is no statutory cap.

Each agency sets its own commission structure. Fees may vary depending on:

  • the level of service and advisory support provided;

  • the scope of advertising and marketing activities;

  • access to international buyers;

  • participation in professional networks (MLS systems, partner agencies).

Agencies operating on an international level typically invest more heavily in marketing, global exposure and client networks, which may result in higher commissions.
Local agencies often work with lower fees and focus primarily on the domestic market.

How to choose a real-estate agency to sell your property

When selecting a real-estate agency, it is important to consider the following criteria:

  • proven experience in your specific area and property segment;

  • access to a genuine buyer database, including international clients;

  • membership in professional partner networks (MLS / inter-agency systems);

  • quality of property presentation and overall marketing strategy;

  • transparent mandate terms and commission structure;

  • full transaction support through to completion with the notary.

A professional agency should do far more than simply publish a listing. It must actively engage with the market, qualified buyers and professional partners in order to sell the property within optimal timeframes and at true market value.

Learn more here: How to Choose a Real Estate Agency in France

What is a property sales mandate?

A sales mandate (mandat de vente) is a contract between the property owner and a real-estate agency, granting the agency the legal authority to market and sell the property.

The mandate specifies:

  • the asking price;

  • the agency commission;

  • the duration of the mandate;

  • the terms and conditions of cooperation.

Without a signed mandate, an agency is not legally authorised to advertise or sell a property.

What is the difference between an exclusive and a non-exclusive mandate?

A non-exclusive mandate allows the owner to work with multiple agencies simultaneously and to sell the property independently.

An exclusive mandate appoints a single agency to manage the entire sale process, including marketing and negotiations.

In practice, an exclusive mandate often results in faster and more controlled outcomes. The agency is more fully invested in promotion, while pricing and property information remain consistent across the market.

How can a property be sold off-market?

An off-market sale means the property is not publicly advertised and is offered only to a limited, carefully selected group of buyers.

This typically involves:

  • signing a mandate with specific off-market provisions;

  • defining a confidential sales strategy;

  • presenting the property through the agency’s private client base and partner networks;

  • organising viewings strictly by appointment;

  • ensuring full confidentiality for the owner.

Off-market transactions are most commonly used for premium and high-value properties, allowing for discreet sales without public exposure.

Is it possible to sell property without an agency?

Yes. A property owner may sell independently, working directly with a notary and negotiating with the buyer.

However, in practice, most sellers choose to work with an agency because it:

  • determines an accurate market value;

  • organises viewings and negotiations;

  • verifies the buyer’s financial capacity;

  • coordinates the transaction with the notary;

  • provides access to an extensive buyer and agency network.

Selling without an agency is possible, but it requires time, experience and full personal involvement at every stage of the transaction.

How is the correct property price determined?

The correct price is determined based on actual sales of comparable properties in the same area — not solely on the owner’s expectations.

Key factors include:

  • location and views (sea view, city centre, waterfront);

  • condition of the property and the building;

  • floor level, layout, terrace and parking;

  • current market conditions;

  • buyer demand.

An overestimated price often results in extended time on the market and eventual price reductions. A correctly positioned market price enables a faster sale without sacrificing value.

Do you provide property valuations?

Yes. We provide professional property valuations and pricing recommendations based on:

  • verified recent transactions in your area;

  • current market demand;

  • property characteristics and location;

  • investment and rental potential.

This analysis allows us to determine a realistic market price at which the property can be sold within a reasonable timeframe.

How to prepare a property for viewings and increase your chances of success?

The main secret of pre-sale preparation is to allow the buyer, from the first step into the house, to feel comfortable, as if they were at home. To do this, you need to create a "Visual Effect".

Preparing to sell:

  • Free up space, remove everything superfluous, put things in order. Introduce neutrality and remove anything that adds character: personal items, photos, souvenirs.
  • Make minor repairs and eliminate visible deficiencies, if necessary, refresh the color of the walls.
  • Create a sense of spaciousness through lots of light and light colors.

Before the visit:

  • Choose a favorable time, according to the light and also according to the weather.
  • Damp-clean before the agent’s or buyer’s visit and ventilate well.
  • Little tricks for good associations: fresh flowers in vases, a pleasant smell (an open can of coffee or the smell of baked goods or vanilla), friendliness and a smile on faces.
What is the difference between an agency valuation and an independent expert valuation?

An agency valuation is a market-based assessment intended to support the sale of a property. It is based on:

  • actual recent transactions in the area;

  • current buyer demand;

  • the agency’s direct experience with purchasers;

  • realistic expectations regarding time to sale.

The objective is to determine a price at which the property can be effectively brought to market and sold within a reasonable timeframe.

An independent expert valuation (expert immobilier) is used in more formal or legal contexts, such as:

  • inheritance matters;

  • court proceedings;

  • tax-related issues;

  • mortgage financing.

This type of valuation has an official, documentary character and is intended for legal or administrative purposes rather than marketing.

Is it worth renovating a property before selling?

This depends on the condition of the property and the target market segment. In most cases, it is sufficient to:

  • carry out light cosmetic improvements and professional cleaning;

  • address minor defects;

  • ensure careful and attractive presentation.

Major renovation prior to sale is rarely necessary and does not always result in a higher net return. There is also a risk of making design choices that may not align with buyer preferences.

In most situations, accurate pricing and strong presentation are more important than a full renovation.

Does the property need to be vacant before selling?

No, this is not mandatory. A property may be sold:

  • while occupied by the owner;

  • furnished;

  • with a tenant in place.

That said, a vacant and well-prepared property is often easier to present and sell, as buyers can more easily appreciate the space.

If the property is occupied, viewings are simply organised by prior appointment.

When is the best time to sell property on the French Riviera?

The French Riviera is an international market, and property transactions take place throughout the year.

The most active periods are spring (March–June) and early autumn (September–October).

Summer tends to be more focused on rentals, while winter often attracts investment-driven buyers.
However, with appropriate pricing and professional presentation, a property can be sold successfully in any season.

How long does it usually take to sell a property?

On average, selling a property on the French Riviera takes between two and six months.

The timeframe depends on:

  • how accurately the price is positioned;

  • the location and liquidity of the property;

  • the condition of the asset;

  • prevailing market conditions.

Properties priced in line with the market and well presented tend to sell more quickly.
Overpricing typically results in extended selling periods.

Can a property be sold if there is an outstanding mortgage?

Yes. The existence of a mortgage does not prevent the sale of a property.

Upon completion of the transaction:

  • the notary repays the remaining loan balance from the sale proceeds;

  • the bank releases the mortgage lien;

  • the remaining funds are transferred to the seller.

This is a standard procedure handled automatically by the notary.

Can a property be sold with a tenant in place?

Yes. In France, a property may be sold with an existing tenant.

In this case:

  • the lease remains in force;

  • the new owner becomes the landlord;

  • the lease terms remain unchanged.

For many investors, a property sold with a tenant is particularly attractive, as it already generates rental income.

If the buyer already has a notary, can the seller appoint their own?

Yes. In France, each party is entitled to appoint their own notary.

Two notaries — one for the buyer and one for the seller — may act jointly on the transaction.
They share the notarial fees, meaning there is no additional cost for either party.

What is the role of the notary in a property transaction?

The notary is a state-appointed public official responsible for ensuring the legality and security of the transaction.

The notary:

  • verifies ownership and legal title;

  • prepares the contracts and the deed of sale;

  • receives and safeguards funds in a secure escrow account;

  • transfers the proceeds to the seller;

  • registers the transfer of ownership;

  • pays applicable taxes and duties to the authorities.

The notary acts as a neutral and impartial party, protecting the interests of both the buyer and the seller.

Is it possible to sell property remotely?

Yes. Property in France can be sold entirely remotely.

This is done by granting a notarial power of attorney, under which:

  • documents are signed by an authorised representative;

  • the notary completes the transaction on the seller’s behalf;

  • the sale proceeds are transferred to the seller’s bank account.

The seller’s physical presence in France is not required. This is a standard and widely used procedure, particularly for foreign property owners.

When does the seller receive the sale proceeds?

After the final deed of sale (acte de vente) is signed, the funds are released to the seller through the notary.

The transfer usually takes place within a few days following signature, once all registration formalities have been completed and any outstanding mortgage has been repaid.

What happens if the buyer withdraws from the transaction?

After signing the preliminary sale agreement (compromis de vente), the buyer benefits from a 10-day cooling-off period, during which they may withdraw without justification. During this period, the deposit is fully refunded.

After this deadline, withdrawal is only possible under conditions expressly provided for in the contract (for example, refusal of mortgage financing by the bank).

If the buyer withdraws without valid contractual grounds, the seller is entitled to retain the deposit as compensation.

What taxes does the seller pay upon sale?

The main tax applicable when selling property in France is capital gains tax (plus-value).

It applies if the property is sold at a price higher than its acquisition cost and may concern both residents and non-residents.

If the property is the seller’s primary residence, capital gains tax is generally exempt.

Further details: Capital Gains Tax in France — Calculation, Rates and Allowances

What is a tax representative for foreign sellers?

A tax representative (représentant fiscal) is a licensed company or professional in France who represents a foreign seller before the French tax authorities when selling property.

A tax representative is required if:

  • the seller is not a French tax resident, and

  • the sale price exceeds the statutory threshold.

The tax representative:

  • verifies the calculation of capital gains tax;

  • guarantees payment of the tax to the authorities;

  • liaises with the notary and the tax administration.

In most cases, the notary will confirm in advance whether a tax representative is required for a specific transaction.

How much does a tax representative cost for a foreign seller?

The fee for a tax representative in France generally ranges between 0.5% and 1% of the sale price.

A minimum fixed fee usually applies, starting at approximately €800 to €1,500, depending on:

  • the value of the property;

  • the complexity of the tax calculation;

  • the seller’s tax status;

  • the length of ownership.

The exact fee is confirmed in advance by the notary or the appointed tax representative prior to completion.

Taxes in France
What should you know about real estate taxes in France
What taxes does a property owner pay in France?

A property owner in France may be subject to the following taxes:

  • Taxe foncière — annual property ownership tax

  • Taxe d’habitation — applicable to second homes

  • IFI — wealth tax on real-estate assets above a certain threshold

  • Rental income tax — if the property is rented out

  • Capital gains tax — upon sale of the property

The type and amount of taxes depend on:

  • the owner’s status (resident or non-resident);

  • the type of property;

  • how the property is used (personal residence or rental).

Further details: Property taxes in France — a complete overview

What is taxe foncière and who pays it?

Taxe foncière is an annual property ownership tax in France. It is payable by the owner of the property as of 1 January of the tax year, regardless of whether:

  • the owner occupies the property;

  • the property is rented out;

  • the owner is a French resident or a non-resident.

The amount of taxe foncière depends on:

  • the municipality;

  • the cadastral rental value of the property;

  • the type of property.

The tax is usually payable in autumn (September–October). More about: Property tax in France — calculation, rates and examples

What is taxe d’habitation and who pays it?

Taxe d’habitation is a tax linked to the use or occupation of a property.
For primary residences in France, this tax has largely been abolished. However, it still applies to:

  • second homes;

  • seasonal or occasional residences.

The tax is assessed on the person occupying the property as of 1 January of the tax year.
For second homes, it is usually paid by the owner.
Further details: Taxe d’habitation in France — who pays and how it is calculated

Do you have to pay taxes if the property is not rented out?

Yes. Even if the property is not rented out, the owner is still required to pay:

  • taxe foncière — annual ownership tax;

  • taxe d’habitation — if the property is a second home.

Income tax applies only if the property is rented out.

What is the IFI (Impôt sur la Fortune Immobilière)?

IFI (impôt sur la fortune immobilière) is the French real-estate wealth tax. It applies when the total net value of real-estate assets exceeds the statutory threshold and concerns:

  • French tax residents — on their worldwide real-estate assets;

  • Non-residents — only on real estate located in France.

The tax is calculated on the net value of assets, after deducting eligible outstanding loans.
Further details: IFI in France — rates, calculation, exemptions and optimisation

From what threshold does IFI apply?

The real-estate wealth tax (IFI) applies when the net value of real-estate assets exceeds €1.3 million. When assessing this threshold, the following elements are taken into account:

  • the total market value of real-estate assets;

  • minus eligible outstanding loans;

  • assessed at the level of a single tax household.

For non-residents, only real estate located in France is included in the calculation.
More on IFI in France: rates, calculation, exemptions and optimisation

How is IFI calculated?

IFI is calculated based on the net market value of real-estate assets as of 1 January of the tax year. From the gross market value of the properties, the following are deducted:

  • outstanding mortgage balances;

  • eligible liabilities and debts.

The resulting net amount is then subject to a progressive tax scale:

  • up to €800,000 — 0%

  • from €800,000 to €1,300,000 — 0.5%

  • from €1,300,000 to €2,570,000 — 0.7%

  • from €2,570,000 to €5,000,000 — 1.0%

  • from €5,000,000 to €10,000,000 — 1.25%

  • above €10,000,000 — 1.5%

IFI is payable only if the net real-estate value exceeds €1.3 million.

How can IFI be optimised?

IFI optimisation is possible only through lawful methods and requires an individual, case-by-case analysis. Common optimisation strategies include:

  • taking outstanding mortgage loans into account, which reduce the taxable base;

  • ensuring an accurate and defensible market valuation of the property;

  • selecting an appropriate ownership structure (for example, through an SCI or SCP);

  • allocating ownership interests among family members, where appropriate.

As IFI is calculated on the net value of assets, proper ownership structuring and financial planning can help reduce the overall tax burden. For a tailored and fully compliant strategy, consultation with a tax professional is strongly recommended.

What does allocation of ownership shares among family members mean?

This is a form of property ownership where real estate is held by several family members — spouses, parents and children. Each family member owns a defined share of the property.

For IFI purposes, the tax is calculated based on each owner’s individual share, not on the full value of the property attributed to one person. This approach is commonly used for estate planning, long-term family ownership, and lawful tax structuring, allowing greater flexibility in managing real estate assets.

Learn more: Divided Property Ownership in France — Tax and Inheritance Rules

Who is a tax representative in France for foreign sellers?

A tax representative (représentant fiscal) is an accredited company or licensed professional in France who represents a foreign property owner before the French tax authorities in connection with the sale of real estate.

A tax representative is required when the seller is a non-resident and the sale price exceeds the statutory threshold. The tax representative:

  • verifies the calculation of capital gains tax;

  • guarantees payment of the tax to the French authorities;

  • liaises with the notary and the tax administration.

In most cases, the notary will confirm in advance whether the appointment of a tax representative is required for a specific transaction.

Maintenance, renovation and construction
What should you know about building and renovating property in France
Construction Permit (Permis de construire, PC)

A building permit (Permis de construire) is the main instrument of town planning control and is issued in two cases:

  • for the construction of a single house and/or annexes (Permis de construire maison et/ou ses annexes);
  • for general construction (Permis de construire général). 
Note: In France, it is customary to include all items of the project in the original application and to use the amendment application only for modifications to the original project. You should not apply for a «building permit» (permis de construire) for most, but not all, work in the hope that the rest will be added as amendments — it probably won’t work.

Architects and building permits

Only an architect has the authority to apply for a building permit. By law, the application for a building permit (Permis de construire) can only be considered after a qualified licensed architect has approved the architectural design, i.e., the preparation of a set of documents including a written description of the scope of work, the location of the objects and the choice of materials, as well as a site plan and sectional drawings (internal side view and vertical cross-section of the building).

Note: According to Article L421-2 of the Town Planning Code, the exception is an application for a building permit for a detached detached house, provided that on completion its total usable area does not exceed 170 square meters. The exception applies only to private owners; for all commercial and other projects that require a building permit, regardless of the size of the property, an architect must be involved.

Permit to construct a dwelling house and/or annexes (Permis de construire maison et/ou ses annexes)

The Permis de construire maison et/ou ses annexes application form takes into account the possibility that the applicant’s principal place of residence is outside France and allows for the exchange of all correspondence with the architect or a third party in place of the applicant.

The application form includes separate boxes for swimming pools, garages, greenhouses and garden sheds, as well as a section on the demolition of existing structures, so that a separate demolition permit does not need to be filed, and also provides the possibility of sending correspondence to both the prospective buyer and the neighbors if additional work affects their plot.

Correspondence with the Department of City Planning is currently allowed via email and the submission of PDF drawings.

Providing the architect’s contact information and license numbers along with the architect’s signature is required. Severe penalties apply to architects who sign someone else’s drawings: the architect’s license is revoked for three months, the client’s permit is revoked, and a fine is imposed on the author of the drawings who received payment for them.

Board of Architecture, Urban Planning and Environmental Protection

When applying for a building permit on your own, you must contact the local branch of the Conseil d’Architecture, d’Urbanisme et d’Environnement (CAUE) before submitting it to obtain advice on the architectural content of the project. There is a box on the application to confirm this request; the review of the project may be delayed if no recommendation has been received.

What work requires a «Permit to Construct a House and/or Additions»

Extension of a building by building more than 20 square meters of floor area (surface hors œuvre brut, SHOB). Works to change the load-bearing structures/walls or façade of a building while changing the purpose of an ancillary room of the building without changing the purpose of the building itself. Work to change the volume of a building or to create new or enlarge existing openings in exterior walls. Construction of swimming pools less than 1.8 m in depth and over 100 square meters in area. All swimming pools with a depth of more than 1.8 m. 

An approximate list of required documents:

  • A site plan at a scale of 1:5000 or 1:10000 showing the location of the site in the county.
  • A cadastral plan at a scale of 1:2000/ 1000.
  • An urban plan of existing or proposed facilities at a scale of 1:500.
  • Floor plan of the existing building at a scale of 1:100 (if applicable).
  • Drawings of all facades of the existing building (if applicable) showing the spatial dimensions of windows and doors at a scale of 1:100.
  • Drawings of all cross-sections of the existing building (if applicable) at a scale of 1:100.
  • Floor plan of the projected building at a scale of 1:100 with spatial dimensions.
  • Drawings of reamers of all facades of the designed building with indication of spatial dimensions of windows and doors in scale 1:100 and indication of materials.
  • Drawings of cuts in scale 1:100.
  • Drawings of 1:200 scale sectional drawings indicating levels of projected modifications to the facility.
  • Two photographs of the existing facility and/or a photomontage/visual simulation of the projected facility.
  • An explanatory note on the impact of the project on landscape integrity.
  • Combined design drawings of key points including access road, landscaping, and plantings.
  • A written note explaining the visual effect of the project on the surrounding area, which should include:
  • The functional zoning of the entire site.
  • The surrounding off-site area (houses, streets, landscaping).
  • Existing building and landscaping within the site, including hedges, garden plantings, and existing materials.
  • A description of the architectural concept of the project, including materials and colors (there are no longer separate boxes on the application for this information). The consultation with an architect from the local Conseil d’Architecture, d’Urbanisme et d’Environnement (CAUE) should always be mentioned in this box.

Permit to develop the site (Permis d'aménager, PA)

The Permis d’Aménager, PA (Permis d’Aménager, PA) application form covers applications for campsites/trailer parks, sports fields and recreation areas, and common areas, including public parking lots and parks.

What work requires a «Site Development Permit»

  • Construction of roads and/or common areas on two or more delineated lots.
  • Construction of roads and/or common areas.
  • Development or expansion of a campground for 20 or more persons or 6 or more tents, trailers, or mobile homes.
  • Construction or expansion of camping complexes based on wooden camping cabins and mobile homes. 
  • The construction or extension of auto-tourist complexes.
  • Development of sports stadiums, carting tracks.
  • An amusement park of more than 2 hectares.
  • Golf courses of more than 25 hectares.
  • Arrangement of public parking lots with at least 50 parking slots

The town planning code and the law on the environment in France

Most of the projects mentioned above must meet not only the requirements of the Town Planning Code (Code de l’Urbanisme) but also those of the Environmental Code (Code de l’Environnement). Moreover, many projects require various assessments and surveys in order to obtain a «Site Development Permit».

For example, a golf course will require an environmental impact assessment (EU directive) and possibly, under the environmental law, an application for deforestation (défrichement), an opinion under water law (loisur l’eau), and many other documents submitted along with an application for a «Permit to develop a site» (Permis d’aménager).For any project involving a change of use of a land, you must first consult an architect and/or a Design Bureau (Bureau des etu.

Permit for general construction work

The basic package of documents for a general building permit (Permis de construire général) is identical to that required for a building permit for a house and/or annexes (Permis de construire maison et/ou ses annexes). However, it is likely that additional documentation may be required, which cannot be listed here due to its great dependence on the type of building. Documents can only be submitted by a licensed architect — it is advisable to contact the architect in advance for specific details on each non-residential construction issue.

Application Filing:

  • 4 copies of the application package, application, additional copies and/or additional surveys. 
  • Response to the application is within 3 months.

Application to amend a valid building permit (Modification d'un permis délivré en cours de validité)

Application for Amendment of a Valid Building Permit (Permis délivré en cours de validité)If, after obtaining a building permit, it becomes necessary to change any aspect of the project during the course of the work on the site, a corrective application (Permis modificatif) for an amendment to a valid building permit (Permis délivré en cours de validité) must be submitted. This permit is required when there is a change in the design number of windows, living space, or an increase in the scope of the project. It is not advisable to start work before obtaining the official approval of the «Permis modificatif», because if it is rejected, you will have to go back to the original project and remove all the modifications already carried out, even if this means demolishing them. The «Adjustment Application» form (Permis modificatif) applies to the Building Permit (permis de construire), the Building Permit for a detached house and/or annexes (permis de construire maison et/ou ses annexes) and the Site Development Permit (permis d’aménager) with mandatory approval of any changes made during the design or construction phase, until final acceptance of the construction work and declaration of completion in accordance with the permit.

Application:

  • 4 copies of the package of documents + application to be submitted to the City Hall.

Review of application:

  • 2 months — Permit to construct a residential house (Permis de construire maison);
  • 3 months — Building Permit (Permis de construire) or Settlement Permit (Permis de construire or Permis d’aménager).
Property management
Popular questions about managing your real estate in France
What is property management?

Real estate management is the activity of maintaining and improving the condition of the property and its utilities, successfully resolving issues in the interest of the owner.

The main objectives of property management: the excellent functioning of the object, reducing maintenance costs and increasing profits from its use.

With 17 years of experience in the French real estate market, ServiceAzur has built a dedicated property management team with Russian-speaking professionals to better meet your needs once you buy.

The main objectives of property management: to maintain the successful functioning of the house and ensure the comfort of the owner.

How to reduce property maintenance costs?

The desire of every owner is to reduce maintenance costs and to preserve and improve the condition of real estate. The path to achieving the above objectives consists of a series of stages in the organization of economic management, which is a constant analysis and improvement of the structure of income and expenses directly related to the use and maintenance of real estate.

The advantage of ServiceAzur’s professional approach to property management in France is that the work is carried out in a comprehensive and continuous manner, allowing you to minimize costs and increase profits by using the property in a truly efficient and profitable way!

Our professional approach includes comprehensive administrative consulting: legal, accounting, office and concierge services. We prepare annual financial statements and help individuals and businesses fill out tax returns.

The taxation system in France

The legal part of the management contract includes annual assistance with tax returns and taxes such as:

  • Taxe Foncière — tax on ownership.
  • Impôt sur revenu — tax on income.
  • Taxe d’Habitation — tax on residence.
  • IFI — tax on immovable property.
  • Taxe 3%.
  • Déclaration 2072.

For those who want to optimize their taxation, we help them correctly allocate and combine their real estate rights, mainly through the registration of a civil society for real estate (SCI — Société Civile Immobilierère).

In turn, the SCI requires an annual financial statement. The owner is provided with a table with expenditures by groups formed during the operation of the real estate and periods for easy control of funds.

Why do you need a monitoring visit to the property?

As a rule, we make pre-planned and coordinated visits with the owner to regularly check the condition of the property, diagnose utilities and observe safety measures. We follow the work of the staff and monitor the performance of the work (gardener, pool specialist, cleaners, other services), take pictures and send clients a report on the condition of their property.

By keeping in constant contact with utilities and contractors, we keep them «up to date» so that they continue to meet their obligations.

What is included in the administrative and technical part of the contract?

Administrative (technical) management is the whole complex of works aimed at maintaining the state of both the object itself and all communications that ensure its full functional state.

The office part is very labor-intensive, for example, we maintain regular communication between the various instances and subjects of the process, such as:

  • utility structures (electricity, gas, water, sewage); 
  • communication services (telephone, internet, television);
  • garden and pool maintenance staff, maids, drivers; 
  • security services (alarm, video surveillance, security); 
  • insurance instances (real estate, transportation, health);
  • construction organizations (architects, designers, geometers).

Our department constantly monitors the correspondence, deals with the translation of documents, the drawing up of contracts, approving and paying invoices, etc. All received documents are studied, classified and archived. Each item worked out becomes a subject of reporting to the owner.

Is property insurance mandatory in France?

Yes, in France property insurance is mandatory in certain situations — but not in all. The overview below clarifies the key obligations depending on your status.

  • If you are an owner-occupier (propriétaire occupant)

Property insurance is not legally required, but it is strongly recommended. Without coverage, you are personally liable for any damage (fire, water damage, explosion, etc.), including harm caused to neighbouring properties. Most owner-occupiers take out a multirisque habitation (MRH) policy — a comprehensive home insurance contract.

  • If you are a landlord (propriétaire bailleur)

Insurance is not compulsory for the landlord. However, if the tenant is not insured, the landlord bears the financial risk in the event of fire, water damage or other incidents. For this reason, most landlords include an insurance clause in the lease agreement and request proof of the tenant’s policy.

  • If you are a tenant (locataire)

Insurance is legally mandatory (Article 7 of the Law of 6 July 1989). Tenants must hold home insurance covering at least rental risks — fire, explosion and water damage. If the tenant fails to obtain a policy, the owner may terminate the lease, or purchase insurance on the tenant’s behalf and add the cost to the rent.

  • If the property is part of a condominium (copropriété)

Since 2014 (Loi Alur), insurance is mandatory for every co-owner, including those who do not reside in the property. The minimum requirement is civil liability insurance (responsabilité civile) covering damage caused to neighbours or other occupants

Ensuring the safety of your property on the Cote d'Azur

We know how important the security of your property is. This issue becomes especially relevant for those who have real estate on the French Riviera as a summer residence.

We always advise our clients to secure their property for their complete comfort. That’s why our security partners offer the most advanced and most reliable security alarm solutions, tailored to the individual needs of each client.

If your property is in our management, you can fully rely on the professionalism of our staff. Our managers carry out control visits, during which the general condition of the residence is checked, the number of such visits depends on the formula you have chosen.

What is a concierge service?

Our concierge services are your reliable personal assistant!

In addition to servicing the property itself, we try to make the life of our owners on the Cote d’Azur as comfortable as possible and contribute to this as much as possible.

Searching for any information, for example, about the rental of transport (yacht, helicopter, car) or accommodation, medical services, shopping tours, transfers, excursions, booking restaurants, hotels, various tickets, with the help of a professional, will provide you with an efficient and reliable result.