Short answer. A non-resident can buy property in France without any authorisation or restriction, on the same terms as a resident. The differences lie elsewhere: in tax (real estate wealth tax on French assets only above €1.3 million, rental income taxed in France at a minimum rate of 20 and then 30 per cent, capital gains subject to a 19 per cent levy plus social charges, with a tax representative required for residents outside the EU above €150,000), in financing (banks require a 30 to 40 per cent deposit, with suitable security), in the choice of ownership structure (directly, in joint ownership, through a French property company (SCI), with the inheritance consequences of the country of residence), and in handling the transaction from abroad (notarised power of attorney, apostille, translation, documented transfers of funds). Acquisition costs are around 7 to 8 per cent of the price for an existing property. The ten-day cooling-off period and the loan condition protect the non-professional buyer, resident or not.
Every year, buyers from the United States, the United Kingdom, Switzerland, the Gulf or Asia buy a flat in Paris, a house in Provence or a villa on the Riviera. Most of them discover the French system through an estate agent and a notary, who do their job, but neither of whom represents the buyer alone or advises on the tax rules of the buyer’s country of residence, on the ownership structure or on the inheritance consequences. This article sets out what a non-resident buyer needs to know before signing, what it will cost, and the decisions that cannot be undone after completion. Our page on lawyers for foreign buyers of property in France describes the situations in which the firm acts.
1. No restriction, but a regulated transaction
French law does not restrict the purchase of property by foreigners or non-residents, whether a home, commercial premises or land. No authorisation is needed, no visa or residence permit is required to buy, and ownership is fully protected. The only exceptions concern very specific assets, such as certain agricultural land subject to the pre-emption right of the rural land agencies (SAFER), or land falling under foreign investment control where it is linked to a sensitive activity, which does not concern the purchase of a home.
The transaction follows the French pattern: offer, preliminary contract (promesse or compromis de vente), cooling-off period, financing, then the final deed before a notary. Two protections are worth knowing. A non-professional buyer of a home has a ten-day cooling-off period starting the day after the letter notifying the preliminary contract is first presented (Article L. 271-1 of the Construction and Housing Code), with no reason required and no penalty. And where the purchase is financed by a loan, the preliminary contract is concluded subject to the condition that the loan is obtained, for a minimum of one month: if the loan is refused, the buyer gets the deposit back. These protections apply to non-residents as to residents, but they assume the preliminary contract is correctly drafted, with the amount, term and maximum rate of the loan sought.
2. The cost of buying: 7 to 8 per cent for an existing property
What is commonly called “notary fees” is mostly tax. Transfer duties collected by the State and local authorities amount, in most départements, to a little under 6 per cent of the price; to this are added the notary’s fees, which are regulated and decrease by band, the land registry contribution and disbursements. In total, the buyer of an existing property should budget 7 to 8 per cent of the price; for a new home or an off-plan purchase, which bears VAT, the duties are reduced and the total is between 2 and 3 per cent. The estate agent’s commission, usually 3 to 5 per cent, is payable by whoever the mandate designates, most often the seller, but the contract may put it on the buyer; this should be checked before making an offer, because it changes the basis on which duties are calculated.
3. Tax for non-residents: IFI, rental income, capital gains
The real estate wealth tax (IFI) applies to persons whose tax domicile is not in France on their French property assets only, where their net value exceeds €1,300,000 (Article 964 of the General Tax Code). A non-resident who buys a Paris flat worth two million euros is therefore liable, on its value net of deductible debts, which gives bank financing a tax advantage on top of its economic interest. The tax treaties concluded by France may change this result.
Rental income from property located in France is taxable in France, whatever the country of residence. For non-residents, the tax cannot be lower than an amount calculated at 20 per cent up to the upper limit of the second band of the scale, and 30 per cent above it (Article 197 A of the General Tax Code), unless the taxpayer shows that a lower average rate would apply to their total worldwide income. Social charges are added, or the solidarity levy at the reduced rate for persons covered by a social security scheme of an EU or EEA State or Switzerland. The choice between unfurnished and furnished letting, and between the actual-expenses and flat-rate regimes, changes the result significantly and is decided before the purchase.
On resale, a capital gain made by a non-resident is subject to a specific levy (Article 244 bis A of the General Tax Code), at 19 per cent for individuals, plus social charges and, above €50,000, a progressive surcharge, with the same holding-period allowances as for residents. A partial exemption exists for the sale of a home in France by a former resident, subject to conditions. For sellers resident outside the EU and the EEA, appointing an accredited tax representative is mandatory, although the tax authorities’ published guidance exempts sales at a price not exceeding €150,000 and fully exempt sales; this representative, who guarantees payment of the tax, charges a percentage of the price. Finally, bilateral tax treaties allocate taxing rights and prevent double taxation; the buyer should know the treaty between France and their country of residence before choosing a structure.
4. Owning directly or through a company
The question of structure is the one with the greatest long-term consequences. Direct ownership is the simplest and cheapest; on the owner’s death it subjects the property to French rules of devolution and inheritance tax on real estate located in France, with rates that are high between unrelated persons or distant relatives, and to the French forced heirship rules (réserve héréditaire) where French law applies. The European Succession Regulation allows a foreign national to choose the law of their nationality to govern their whole estate, which may exclude French forced heirship, but it does not change the tax.
The French property company (société civile immobilière, SCI) is the tool most widely used by non-residents: it makes transfer easier through sales of shares, allows arrangements between several buyers or across generations, and may, subject to conditions, change how the property is characterised for inheritance purposes. It has its constraints: accounts and annual returns, taxation of non-resident partners and, above all, for some countries of residence, unfavourable tax treatment of a foreign company holding property, notably in the United States and the United Kingdom, where a company that is tax-transparent in France may be treated differently. A foreign company, foundation or trust adds reporting obligations and sometimes an annual tax of 3 per cent on the market value of the property, unless the beneficial owners are declared. The right choice depends on the country of residence, the family situation, the use of the property and the holding period; it cannot be improvised in front of the notary in the week of signing.
5. Financing from abroad
French banks lend to non-residents on stricter terms than to residents: a deposit of 30 to 40 per cent of the price including costs, a term often limited to fifteen or twenty years, a requirement for documented income and sometimes for investments held with the bank, and borrower insurance that takes time to obtain from abroad. The loan is secured by a mortgage or a lender’s lien, registered by the notary. A buyer financing through a bank in their own country must arrange for the funds to reach the notary’s account before signing, with evidence of their origin; notaries, who are subject to anti-money laundering due diligence, refuse funds whose source is not established, and a transfer blocked the day before completion causes the sale to fail. The timetable for transfers, the currency and the exchange rate risk between the preliminary contract and completion are part of the file just as much as the price.
6. Buying from abroad: power of attorney, apostille, translation
A non-resident buyer does not have to travel to sign. They can give a power of attorney to a third party, usually a clerk at the notary’s office or their lawyer, by notarised deed or by private deed with a certified signature, depending on the document to be signed and the notary’s requirements. A power of attorney executed abroad must be legalised or bear the apostille under the 1961 Hague Convention, and be translated into French by a sworn translator where it is drafted in another language. The deed of sale itself is in French; the notary must be satisfied that the buyer understands its effect, which leads to the presence of an interpreter or a translation, the cost of which is borne by the buyer. The firm works in English and, for its clients, prepares a clause-by-clause summary note of the preliminary contract and the deed before signing.
7. What the agent and the notary do not check for you
The estate agent acts for the seller; the notary, a public officer, draws up the sale for both parties and checks title, mortgages, easements, planning and the mandatory surveys. Neither advises the buyer on the tax rules of their own country, on the ownership structure, on negotiating the clauses of the preliminary contract or on the risks specific to the property. The technical survey file (Article L. 271-4 of the Construction and Housing Code), covering asbestos, lead, termites, electricity, gas, energy performance and risks, must be read and understood: a poor energy performance rating prohibits or will restrict letting the property in the years ahead, which an investor needs to know before buying. The co-ownership regulations and minutes of general meetings reveal works voted or to come, pending proceedings and service charges. A co-ownership property with a heavy multi-year works plan, a façade renovation already voted or a dispute with the managing agent is negotiated differently.
8. Mistakes that cannot be put right
Four mistakes come up in the files the firm takes over after the event. Buying directly as a couple, with no marriage contract or agreement, and discovering on death or divorce which matrimonial regime applies and the forced heirship rules. Buying through a company from the country of residence, and discovering the 3 per cent tax or the tax treatment in the home country. Signing a preliminary contract without a suitable loan condition, or with a condition whose deadline is too short for a bank processing a non-resident’s application. And neglecting resale: a property bought without thinking about capital gains, the tax representative and the tax treaty can cost a large share of the gain on exit. Each of these mistakes is avoided by taking advice before the offer, not after.
9. What the firm does, and how long it takes
The firm accompanies the non-resident buyer from offer to completion and beyond: analysis of the personal and tax situation, choice of ownership structure together with advisers in the country of residence, review and negotiation of the preliminary contract, follow-up of the loan condition and financing, coordination with the notary, preparation of powers of attorney and their legalisation, checking of funds and the transfer timetable, an explanatory note on the deed in English, and then, after the purchase, French tax returns and the organisation of letting or transfer. A purchase usually takes three to four months between offer and completion; non-resident files need one or two extra weeks for powers of attorney and financing. The practical guide Cross-border property acquisition details the six points that decide whether the transaction holds, and our real estate law page presents the firm’s other areas of work.
Are you thinking of buying in France from abroad, or do you already have an accepted offer? Decisions on structure, financing and tax are made before the preliminary contract. A first conversation, in English or French, sets out what needs to be decided and in what order.
See also: Hidden defects after a property purchase: time limits, proof, claim.
Frequently asked questions
Can a foreign non-resident buy property in France?
Yes, without authorisation, restriction or residence permit, on the same terms as a resident, except for certain agricultural or sensitive assets. They benefit from the ten-day cooling-off period (Article L. 271-1 of the Construction and Housing Code) and from the loan condition.
What are the purchase costs for a non-resident?
The same as for a resident: around 7 to 8 per cent of the price for an existing property, 2 to 3 per cent for a new one, covering transfer duties, the notary’s fees and disbursements, plus the agent’s commission if payable by the buyer.
Does a non-resident pay real estate wealth tax in France?
Yes, on their French property assets only, where their net value exceeds €1,300,000 (Article 964 of the General Tax Code), subject to tax treaties. Financing debts are deductible.
How are a non-resident’s rental income and capital gains taxed?
Rents are taxed in France at a minimum rate of 20 per cent, then 30 per cent above a threshold (Article 197 A of the General Tax Code), plus social charges or the solidarity levy. Capital gains are subject to a 19 per cent levy (Article 244 bis A), social charges and a surcharge above €50,000, with a mandatory tax representative for residents outside the EU, unless exempted by the authorities’ guidance up to €150,000.
Should you buy directly or through a French property company (SCI)?
It depends on the country of residence, the family situation and the use of the property. An SCI makes transfer and arrangements between buyers easier, but may be treated unfavourably by the tax rules of some countries, notably the United States and the United Kingdom. The decision is made before the preliminary contract.
Article written by Hervé Guyader, avocat at the Paris Bar, doctor of law. This content is general information and does not replace legal advice.