About 200,0001 Britons have invested in the French real estate market with the purpose of purchasing a second home there. Even the twin shocks of the pandemic and Brexit didn’t stop UK citizens from snapping up almost 1,700 properties in the French countryside.
If you own a French home and you’re considering moving house or selling an investment, we’re here to help. This guide covers everything you need to know about selling property in France, including fees, taxes and legal requirements. We will explain the steps involved in selling your home and provide you with an estimate of when you can expect to hand over the keys. Please be aware that this is not a substitute for professional tax advice. Consult a lawyer or tax expert for assistance in minimising your tax liability when selling property.
We will also investigate options for remitting the funds from the sale of your French property to the United Kingdom without incurring excessive costs or suffering from unfavourable currency rates.
First, let’s see how things are going in the French real estate market.
Is the French market ready to buy now?
Before the global Covid-19 crisis struck, the property market in France was booming⁴. The good news for emerging vendors nonetheless is that the epidemic doesn’t seem to entirely disrupted this growth. Despite the slowing of the French economy, home prices have continued to rise.
Sales of older properties have soared, with a record number of transactions reported at the end of May 2022. People are increasingly leaving large cities for suburban areas and smaller municipalities. The increase in remote work, which coincides with a growing desire for greenery and open spaces, is largely to blame, say experts. A rural setting or a particularly lush plot of land may increase the value of your home.
Do your research before deciding to sell your possessions. Research the rate of appreciation and the level of interest in homes of your desired style and location. This can inform you whether now’s the perfect moment to sell, or whether you should wait until the local property market picks up.
Get in touch with a realtor or try a private sale.
Approximately 40% of all residential property sales in France are completed without the assistance of an estate agent. Estate agency fees may be pretty high (more on that later) and it is feasible to sell your house yourself by making use of internet listing sites and real estate portals like Esales International or Magnolia Property.
However, you might benefit from an estate agent’s familiarity with the area and their expertise in the field. They will take care of showings, negotiations, and other important details that you might miss if you aren’t physically present in France. A personal recommendation from someone you know and trust is the best way to find an agent immobiliers (real estate agents). Otherwise, find one that is a member of a professional association such as the FNAIM, UNIS, SNPI or CNAB. In France, all agents immobiliers have to be licenced and carry a carte professionally.
Carry out the compulsory property surveys
The mandatory surveys and inspections are a significant hassle when selling a home in France.
A diagnostic technique dossier contains these. (DDT). The DDT includes six different types of testing:
- for lead and asbestos
- Gas installations and electrical wiring
- Septic tanks (if applicable)
- Conservation of energy
- Termites
- Dangers posed by nature or industry
All of the relevant DDT tests need to be carried out before the property is sold. The only exception is the energy efficiency survey, which must be carried out before the property is marketed. It is your responsibility to verify that the expiration dates of all tests are beyond the closing date of the sales contracts.
Market your property
The time has come to put your home up for sale and begin attracting potential buyers. While your real estate agent should take care of the bulk of the marketing, individual sellers should still make use of every available platform to attract potential buyers. Use sites like Esales International, Magnolia Property, Kyero, French-Property and Green Acres to get as much exposure as you can.
Appoint a notary
The role of the notary (notaire) in French real estate transactions is crucial. As a conveyancing solicitor, they ensure that everything is done in accordance with the law.
In most cases, the notaire represents both the buyer and the seller. You can also choose to get your own property solicitor to advise you, but the state-appointed notary will still be an integral part of the process. You may need a translator or an attorney who is fluent in both French and English if they only speak French5. There is no need to shop around or haggle over fees because the notary is appointed on a national level. Rates are normally predetermined, so selecting a notary should be an easy procedure.
Create a Compromis de Vente and have it notarized
After an offer is accepted, a purchase agreement (Compromis de Vente) is drafted between the seller and the buyer. This is done by the estate agent or the notary, and usually happens around a week after a verbal offer has been made and accepted.
All pre-sale conditions and terms negotiated between the buyer’s and seller’s agents are included in the agreement. Each party has the opportunity to rescind their commitment to the agreement within 10 calendar days of its execution.
The deposit is paid
After the 10 day ‘cooling-off period’, the buyer pays the deposit, to be held by the notary. Typically, this is 10% of the selling price, however deposits as low as 5%9 have been known to occur.
If either party cancels the sale now, there will be financial consequences. The deposit is non-refundable in the event of a change of heart by the buyer. However, if you as the seller pull out of the deal, you’ll have to return the deposit and may have to pay a further 10% of the sale price as compensation.
Honest Admittances
The seller is obligated to make known any and all material defects, easements and restrictions, tenancies, licenses, and planning consents that may affect the sale or use of the property. If you don’t do this and the property is sold with a hidden defect, a court could declare the sale null and void. The buyer may even demand compensation from you.
Get the Acte de Vente signed
You’re nearly there. Finalizing a purchase involves scheduling a meeting (at the notary’s office in France) to sign the Acte de Vente. The agreement should be signed in the presence of all parties, at which time you will turn over the property’s keys and legal ownership.
The notaire will handle getting you the rest of the money. We’ll look at how you can best transfer this amount to your UK bank account in just a moment.
When selling a home in France, how long does it typically take?
The length of time it takes to sell a home in France varies, but is often prolonged by the copious amounts of paperwork and bureaucracy that must be completed. Although it might happen quicker, you can expect it to take around 3-4 months⁷ before the Acte de Vente is finally signed. The time it takes to locate a buyer is another consideration.
Can I get this done any faster?
There are some aspects of the process over which you have no control, but you can take steps to increase the likelihood of a quick sale. Here are some tips:
Get your DDT and other tests carried out as soon as possible. These can delay the process, especially if they uncover any problems that need to be fixed.
Have all your documentation in order. If you are unsure of what is required of you, a notary or your own attorney can help.
Clean up and organise your space. Be sure that the property looks great in the photos and during the in-person showings.
Capture stunning images, and maybe even a video tour! More views and a quicker sale are possible with the help of professionally taken photos. And in the age of remote technology, uploading a virtual or video tour of the property could be a smart move to attract more buyers.
Put in some plants. As we’ve discussed, people in France are increasingly leaving the overcrowded metropolis for the tranquil countryside. So the more you can ‘green’ up your property, the more desirable it may be.
Fees and taxes for selling a property in France
The time has come to get down to brass tacks and discuss the true cost of selling a home in France. Let’s go over the most important taxes and fees.
What fees will I pay as the seller?
The following4 are the most significant expenses you can expect to incur when selling a home in France:
Pay for real estate services. Commissions for real estate agents typically range from 4 percent to 12 percent of the sale price. But there’s room for discussion.
The cost of using a notary:
The notary fee can reach 10% of the total sale price.
The price of DDT:
The seller is responsible for scheduling and paying for any required diagnostic tests, the cost of which may vary based on the number of surveys.
Transfer taxes on real estate
When you sell a home in France, you’ll need to pay capital gains tax. In France, this is the result of capital gains from the sale of a home or piece of land and is referred to as “impôt sur les plus values.”
Income is taxed at a flat rate of 19%, and an additional 17.2% is levied for various social charges. As a result, the potential gain from the sale could be subject to a hefty plus values tax of 36.2%.
