Buying Property in France as a Foreign Buyer: Lawyer in Paris

Buying property in France from abroad means dealing with a notarial system, a tax regime and family law that often differ from those of your country of residence. The notaire executes the sale; he does not defend the particular interests of the foreign buyer, nor does he coordinate the buyer’s advisers. That is the lawyer’s role.

The firm assists non-resident buyers, private individuals and companies, from the offer letter to the handover of keys, in English and in French.

The risk: signing a preliminary contract that binds you definitively without measuring the consequences

In France the promesse or compromis de vente is a binding contract: beyond the ten-day cooling-off period of Article L. 271-1 of the Construction and Housing Code, a buyer who withdraws forfeits the deposit, generally 10 % of the price, and may be compelled to complete. Conditions precedent, notably for financing, must be drafted precisely.

The ownership structure has lasting consequences: direct ownership, joint ownership, a French société civile or a foreign company change the taxation of income, capital gains, the real estate wealth tax and succession, as well as the application of the 3 % tax of Article 990 D of the French Tax Code to opaque entities. The matrimonial property regime and the law governing succession, determined by the European regulations, must be checked before signing.

The legal solution: preparing the acquisition before committing

The firm reviews and negotiates the offer and the preliminary contract: price, conditions precedent, timetable, seller’s warranties, technical surveys, tenancy and planning status, easements, co-ownership charges and works already voted. It checks the surveys and the general meeting minutes to detect forthcoming works and pending disputes.

It decides the ownership structure together with the tax advisers of the country of residence, organises financing and security, and coordinates the French notaire, the foreign notary or lawyer and the bank. These steps are detailed in the practical guide on cross-border real estate acquisition and its six-point analysis.

How the firm assists you

The firm intervenes from the search stage, analysing shortlisted properties and dealing with the estate agent and the seller. It drafts or amends the preliminary contract, monitors the satisfaction of conditions precedent, prepares powers of attorney and remote signing, and reviews the draft deed before completion.

After the acquisition, it assists the non-resident owner with the legal management of the property: letting, co-ownership meetings, works, disputes with the seller or contractors, resale and capital gains taxation, including the appointment of an accredited tax representative where required.

Typical matters

The situations below are illustrative scenarios drawn from the firm’s practice and anonymised.

British buyers of a Paris apartment

A London-based couple buys an apartment in Paris. The firm reviews the compromis, obtains a financing condition suited to a foreign bank and detects facade works already voted but not disclosed by the seller, whose cost is deducted from the price.

Foreign company acquiring an investment building

A Luxembourg company acquires an office building. The firm coordinates the lease audit, the structuring of ownership with regard to the 3 % tax and the sale documentation.

International succession and French property

Heirs residing in the United States must deal with a French property. The firm determines the law applicable to the succession, coordinates the notaire and organises the sale.

Two questions follow the purchase more often than any other: a defect the seller did not disclose, which we handle under hidden defects after purchase, and, for an apartment, the rules of the building, which we handle under condominium and general meeting disputes.

Frequently Asked Questions

Can a non-resident buy property in France?

Yes. There is no restriction on foreign ownership of French real estate, whether the buyer is resident or not, an individual or a company. The practical constraints are financial and administrative: the bank’s checks on the origin of the funds, the need in most cases for a French bank account for the notary’s transfers, and the identification formalities imposed on a foreign company. Buyers from outside the European Union are not subject to any specific approval for the purchase of residential property.

What are the steps and the timetable?

A preliminary contract, either a unilateral promise or a bilateral undertaking, then the notarised deed, usually two to three months later. A buyer of a dwelling has a statutory cooling off period of ten days after notification of the preliminary contract. Conditions precedent commonly cover the mortgage offer, planning matters and the absence of pre-emption by the municipality. Deposits are held by the notary, whose role differs from that of a lawyer acting for one side, since the notary is responsible for the deed rather than for a party.

What taxes apply on purchase and on holding?

On purchase, transfer duties of roughly five per cent of the price for an existing property together with the notary’s tariff, while a new property is subject to value added tax instead. On holding, the property tax, the housing tax on second homes, and the property wealth tax where the net value of French real estate exceeds the statutory threshold. Rental income from French property is taxable in France whatever the treaty, and the double taxation treaty then governs relief in the country of residence.

Should the property be held personally or through a company?

That depends on the purpose and on the family situation rather than on any general rule. A société civile immobilière makes joint ownership and transfers between family members easier and separates management from ownership, but it creates accounting and reporting obligations and does not by itself reduce tax. Direct ownership is simpler and often better for a single owner. A foreign company holding French residential property faces specific annual reporting obligations and an annual tax where it is not exempt.

What happens to the property on death?

French law applies the European Succession Regulation, so the succession is in principle governed by the law of the deceased’s habitual residence, with the possibility of choosing the law of nationality by will. French protective rules for heirs may still be engaged in certain situations. Inheritance tax on French real estate is due in France whatever the succession law, subject to the applicable treaty. Planning this before the purchase, through the choice of law and the mode of ownership, is far easier than correcting it afterwards.

Which points are most often overlooked?

The pre-emption rights of the municipality and of tenants, easements and boundary questions, planning constraints and pending applications by neighbours, the state of the condominium’s finances and any works voted but not yet called, and the exact perimeter of what is sold, in particular cellars, parking and annexes. For a second home intended to be let, local rules on short term rental have become the most frequent source of disappointment. Each of these is checked before the preliminary contract, not after it.