How to buy real estate in France in 2022? Description of the transaction procedure and costs. Rights and obligations of the parties. What taxes pay the owner of real estate?

The real estate market in France is characterized by a variety of proposals that do not lose their relevance even in times of crisis. The purchase procedure itself is the same for all types of residential and commercial properties. The main condition for purchase - confirmation of the legality of income.

Owners of real estate can count on a faster processing of a visitor's visa for 1 year and the possibility of an extension up to 5 years, because the presence of a permanent address is one of the prerequisites for a residence permit in France. Residents can obtain French citizenship after 5 years.

Key steps

1. Selection. Initially, the buyer needs to decide on the main parameters:

  • choice of city and neighborhood;
  • budget;
  • area of interest;
  • method of purchase (in person/remote);
  • method of payment (own funds/borrowed capital).
  • purpose of purchase (residence or investment).

You can select properties on your own or through a realtor, although their involvement is not mandatory. In the second case, the search will be more personalized, faster, and more competent. The specialist will help to assess the liquidity of the object, point out the details of the neighborhoods of the selected property, as well as take into account such nuances as the cost in the coming years to maintain the building, changes in the infrastructure of the neighborhood or the proximity of noisy highways and restaurants and other important aspects.

2- Opening an account in a French bank. Due to the disconnection of Russian banks from SWIFT and the aggravation of relations in international politics, clients from Russia experience difficulties with transfers. In this case, it is possible to use accounts of foreign banks or services of licensed agencies dealing with immigration abroad. GARANT IN clients can count on our assistance.

3. Object Viewing. During the pandemic, France has successfully practiced the introduction of online tours, where a realtor remotely shows the property to the buyer in real-time. This helps to reduce travel costs.

4. Signing a preliminary contract. Compromis de vente is a document in which the main parameters of the transaction (the value of the object, the terms of purchase, the date of signing the purchase agreement), as well as the conditions precedent (for example, mortgage lending), are spelled out.

The conclusion of a preliminary contract is carried out with the participation of a notary. He is the representative of the state and acts as a guarantor of the security of the transaction. At this stage, the buyer transfers 10% of the full price to the notary's account. Within 10 days, the buyer has the right to change his mind and return the deposit. If borrowed funds are used for the purchase and the client receives a refusal from the bank, the deposit is also returned.

5. Checking the technical condition. The procedure is performed by a notary and takes about 2.5-3 months. An authorized intermediary checks the information specified in the technical documentation on the condition of the real estate and the presence/absence of encumbrances (compliance with the meterage of the declared area, examination of the building for the use of asbestos and lead during construction, the state of electricity and gas networks, etc.) This also helps to reduce the risks for the buyer.

6. Conclusion of the main contract. Acte de vente is the main contract signed by the parties in the presence of a notary and a licensed interpreter. A power of attorney may represent the buyer's interests. By the time the sale is concluded, the buyer must transfer the full amount of the value of the property to the notary's account. After signing, the buyer is given the keys and attestation of the object in his name. Then it is necessary to register the transaction in the registration office. The procedure takes up to 2 months, but the owner is already entitled to perform any actions with the purchased real estate.

7. Real estate insurance. This is a mandatory condition, the fulfillment of which is controlled by the notary.

Expenses

In addition to the cost of the object, the buyer must pay the following expenses:

  • notary fees and state duty - 7.5% when buying on the secondary market and 2.5% when buying objects in new buildings (the amount includes taxes, state duty, costs for the execution of documents, and notary fees);
  • interpreter services - 350€ for 1scompany.

Taxes

Only owners of luxury real estate in the French Riviera or Paris worth more than 1,300,000 € pay property tax:

The tax is assessed as follows (if the property is worth more than 1,3m€, 30% discount if main residence) :

  • 0 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 %
  • From €5,000,000 to €10,000,000 : 1.25%
  • Above 10,000,000 € : 1.5%

Experts of the international company GARANT IN will provide the necessary legal and consulting support in obtaining an EU residence permit and acquiring real estate. The agency cooperates with certified partners in France, which saves time and money for our clients. We will help you to find suitable objects for permanent residence or rent, collect a package of documents, and calculate the cost of the transaction and all related costs.

Individual approach and honesty are the main priorities of our company.