Buyers Guide - France
Why Buy in France?
France is the nearest continental neighbour being only 22 miles across the English Channel. Around 500,000 Brits are believed to own property in France. Numerous cheap flights and the option of the Eurostar means that having a weekend holiday home in France is a truly viable option. Schools, healthcare and social welfare in France are said to be second to none within Europe. Road and rail communications are also excellent with the TGV taking you from Paris to Avignon in under 2 hours.
See our comprehensive guide to France
Fees and taxes
- Depending on the region and type of property you should budget 12-15% of the purchase price.
- Set aside 6-8% for Notary's fees. This includes stamp duty which varies from 0.6% (New Build) to 6% (properties over 5 years old)
- Agent fees can vary greatly, anywhere from 4-15% however most charge around 7% but many include their fees in the asking price.
- IVA (VAT) of 19.6% is applicable on most taxes and fees, but is not charged on leasebacks. The price of new build properties usually includes 19.6% IVA, but you should get this confirmed at the beginning.
- Capital gains tax is applied to properties not held for more than 2 years.
- Transfer tax does vary but for properties over 5 years old it is approx 7%.
The Buying Process
Once the buyer has found a property and made an offer, both parties must then sign a 'compromis' - this is a legally binding document setting out the terms of the contract to purchase. Financing the property should, at this stage, be in place regarding any loans as they must be clearly outlined in the 'compromis'.
The next 7 day period is a 'cooling off' period for the buyer (not the seller) - this gives the buyer opportunity to reconsider the purchase without penalty. A 10% is then required to be paid by the buyer and then the notary will carry out all necessary checks on the property (title and surveys etc...)
Before signing is complete all the necessary funds must be transferred to the Notary's account. Failure to do this on time could result in the buyer loses both the deposit and the property.
If the buyer is unavailable to visit the property prior to the signing of the final contract they must appoint a representative on their behalf to ensure everything is in order.
The contract will then clearly state that the property is suitable and acceptable in its current condition to complete the purchase.
Finally, the 'acte de vente' is signed in front of the Notary and the sale is completed.
Health
The French health service is excellent. Waiting lists are short and Doctors are plentiful. A survey in 2000 by the WHO (World Health Organisation) ranked the French Health Service number 1 in the world.
Every treatment has a fee, however patients contributing to social security through their wages can claim back 70% of this cost.
Property Costs
1 Bed Apartment - £142,000
2 Bed Apartment - £212,000
3 Bed Villa - £253,000
4 Bed Villa - £325,000
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