France – Property Taxes

What taxes and fees apply when buying a property in France?

For anyone acquiring property in France, the most substantial cost beyond the agreed purchase price is the bundle of charges commonly called frais de notaire — notary fees. The label is somewhat misleading, since approximately 80% of this total flows not to the notary as personal remuneration but directly to the French state as taxes and duties. It is worth breaking this figure down into its constituent parts before drawing up a purchase budget.

Transfer taxes (DMTO)
Purchasing a resale property in France triggers droits de mutation à titre onéreux (DMTO) — transfer taxes that make up a large share of transaction costs. For older properties, the standard rate of approximately 5.80% combines a departmental levy typically set at 4.5% with a municipal surcharge, producing a composite rate of 5.80% that the notaire collects and remits to the relevant tax authorities.

2025 rate changes
With effect from 1 April 2025, DMTO increased by 0.5 percentage points under the Loi de finances 2025, granting local authorities greater flexibility in setting these charges. The government announced this adjustment in November 2024 as a three-year measure, although it does not apply to purchases of a principal residence costing €250,000 or less. Always confirm the prevailing departmental rate with a local notaire or through impots.gouv.fr before contracts are exchanged.

Notary’s own fee (émoluments)
The departmental transfer tax runs at 3.8%–4.5% of the transaction value, with most departments applying the upper rate as of 2025. The notary’s own regulated professional fee amounts to approximately 1–2% of the purchase price, calculated according to an official tariff prescribed by the state. State and administrative levies add a further 0.1–0.3%.

Land registry and security fee
Land registry charges (Frais de Publicité Foncière) typically come to around 0.10% of the property value, covering the formal registration of the deed with the Land Registry (Service de la Publicité Foncière). A further mandatory contribution de sécurité immobilière of 0.10% of the purchase price is also collected, enabling the property to be entered into the national database.

VAT on new-build properties
New-build and off-plan properties attract VAT (TVA) at the standard rate of 20%. In certain investment contexts — such as furnished tourist residences — a portion of the VAT may be recoverable. Where new properties are subject to VAT, the DMTO rate drops considerably to 0.715% of the pre-tax sale price, a preferential rate that applies to off-plan acquisitions (VEFA).

Worked examples (as of 2025)
On a resale apartment priced at €300,000, total notary fees will be approximately €21,000. For a new-build property at the same price, fees fall to roughly €6,000–€9,000. On a resale property worth €200,000, buyers should budget around €14,000 for notary fees and registration costs combined.

Who pays what?
The DMTO is ordinarily met by the buyer. In certain arrangements known as “acte en main” transactions, however, the seller may agree to cover these charges. There is no differentiation in DMTO rates based on residency status or whether the property is a primary or secondary home, although the exemption from the 2025 increase for properties under €250,000 is restricted to principal residences.

Practical tips
Itemising the value of furniture separately can be advantageous, as moveable contents are excluded from the taxable base for DMTO. Agency fees stated separately from the property price are similarly excluded from the tax calculation. Always ask your notaire for a preliminary cost estimate (devis) before committing to any contract.

What taxes and fees apply when selling a property in France?

Vendors in France encounter a different cost structure from buyers. Transfer taxes and notary registration fees fall to the purchaser, but the seller remains responsible for estate agent commissions, their own legal and notarial expenses in discharging any outstanding mortgage, and — most significantly — capital gains tax on any profit realised from the sale.

Estate agent commissions
Agency fees in France generally range from 3% to 8% of the sale price (inclusive of TVA), with an average of around 5% for most properties. These fees are conventionally paid by the seller, though the arrangement must be clearly set out in both the sale mandate (mandat de vente) and the preliminary sales agreement (compromis de vente). Note that in certain transactions, agency fees are legally charged to the buyer instead — always scrutinise the listing terms carefully.

Notarial fees on disposal
A seller’s own notarial expenses are generally modest in comparison with the buyer’s frais de notaire. Where a mortgage remains outstanding, the notaire will charge a redemption fee (mainlevée d’hypothèque) to release the charge from the land register, typically amounting to around 0.3–0.6% of the original mortgage. All applicable fees will be confirmed by the notaire ahead of signing.

Capital gains tax
If the property achieves a higher price than was originally paid for it, the seller becomes liable for French capital gains tax (plus-value immobilière), unless a specific exemption applies. The full rules, rates, and a worked illustration are set out in the section below.

No separate sales tax
France does not impose a distinct vendor stamp duty or sales tax of the kind found in certain other jurisdictions. The seller’s principal tax exposure on a disposal is therefore confined to capital gains tax and any applicable social charges. Sellers should obtain a clear written breakdown of all costs from their notaire and estate agent before accepting any offer.

How does capital gains tax work on property in France?

When a property in France is sold for more than its acquisition cost, the resulting profit is known as plus-value immobilière and is subject to capital gains tax. Real estate in France attracts both capital gains tax and social charges, and the combined liability can exceed 40% in certain circumstances. Both residents and non-residents are within scope. Grasping the applicable rates, permissible deductions, and the tapering relief available for longer-held assets is therefore crucial before proceeding with a sale.

The basic rate
Capital gains on French property are taxed at a flat rate of 19% for income tax purposes and at a flat rate of 17.2% for social charges, producing a combined headline rate of 36.2%. An additional surcharge also applies to gains exceeding €50,000. Always verify the rates currently in force with the French tax authority at impots.gouv.fr.

Calculating the gain
The taxable gain is broadly the sale price minus the acquisition cost. Allowable deductions include the original purchase price, DMTO and notary fees paid on acquisition, and the cost of qualifying capital improvements such as major renovations or extensions — routine maintenance does not qualify. Where the property has been held for more than five years and receipts are unavailable, a flat 15% deduction for improvement costs may be applied instead.

Long-term ownership relief (tapering)
France provides generous relief for properties held over the long term. After 22 years of ownership, the gain is wholly exempt from capital gains tax; after 30 years, it is also exempt from social charges. For income tax purposes, an annual allowance of 6% applies for each year of ownership after the fifth year up to and including the twenty-first year, with a 4% allowance for the twenty-second year — delivering complete exemption from income tax after 22 years.

Worked example
Suppose a property has been owned for 15 years and generates a gain of €50,000. A 60% allowance applies (10 years multiplied by 6%), reducing the taxable gain to €20,000. CGT at 19% on €20,000 produces a liability of €3,800, to which social charges on the reduced figure are added — a total substantially below the headline combined rate of 36.2%.

Key exemptions
The gain arising from the sale of a principal residence is entirely tax-free. No capital gains tax is due on property transactions below €15,000. The gain from a first sale of a secondary residence is also tax-free, provided the vendor did not own their principal residence during the four years preceding the sale and the proceeds are reinvested in the purchase of a principal residence.

Non-resident sellers
Non-residents selling French property are subject to capital gains tax calculated under the same rules as residents, with relief available based on the duration of ownership. A rate of 19% applies. For vendors resident outside the EU, EEA, United Kingdom, or Switzerland, social charges apply at the full rate of 17.2%. For residents of the EU, EEA, Switzerland, or the UK, social charges may be replaced by a 7.5% solidarity levy.

Fiscal representative
Non-residents whose taxable gain exceeds €150,000 and who are not tax resident in the EU, EEA, or Switzerland are required to appoint a fiscal representative accredited by the French tax authorities. That representative assumes joint liability with the seller for the accurate declaration and settlement of the tax due.

For current rates and thresholds, consult the official French tax authority at impots.gouv.fr.

Are there any ongoing annual property taxes in France?

All property owners in France — whether resident or not, and whether private individuals or corporate entities — are subject to two principal annual property taxes, and potentially to a real estate wealth tax where holdings are sufficiently valuable. These obligations are entirely separate from any income tax liability on rental revenue.

Taxe foncière (land and property tax)
Taxe foncière falls on all property owners and is calculated by reference to the cadastral rental value of the property. Conceptually it resembles land or council rates in other countries — a recurring levy tied to ownership rather than to occupation or use. The cadastral value is determined by the authorities and revised periodically; it does not necessarily track open-market values. Bills are issued each year, typically falling due in October. For most holiday homes, taxe foncière commonly runs to between €800 and €3,000 annually as of 2025, depending on property type and location. Confirm your specific liability with your local tax office or through impots.gouv.fr.

Taxe d’habitation (residence tax)
Although taxe d’habitation has been abolished for most primary residences, it continues to apply to second homes and holiday properties. This distinction matters considerably for expats: even if a property in France remains empty for the greater part of the year, taxe d’habitation remains due on it. In areas experiencing housing shortages, some localities levy surcharges ranging from 5% to 60% on taxe d’habitation for second homes as of 2025. Check with your local authority (mairie) for the rate applicable in your commune.

Impôt sur la Fortune Immobilière — IFI (real estate wealth tax)
The IFI is an annual tax on the net value of real estate assets. Introduced in 2018 as the narrower successor to the broader ISF (Solidarity Wealth Tax), it is confined exclusively to real estate holdings. It only applies where net taxable real estate wealth exceeds €1.3 million; if that threshold is crossed, the tax is calculated retroactively from €800,000. The IFI rate scale is progressive, ranging from 0% to 1.5%. Unlike wealth taxes in some other jurisdictions that reach across all asset classes, France’s IFI applies solely to real estate, leaving financial investments, pensions, and moveable assets entirely outside its scope.

How is the annual property value assessed?
The cadastral rental value used as the basis for taxe foncière and taxe d’habitation is assessed by the Direction Générale des Finances Publiques (DGFiP), France’s fiscal and public finance authority. Values are anchored to a theoretical rental benchmark established in 1970 and uprated each year by a national revaluation coefficient, meaning they frequently diverge materially from current market values. A comprehensive cadastral reform has been discussed for many years, but no nationwide revaluation has yet been completed at the time of writing.

How does inheritance tax apply to property in France?

France operates a long-established inheritance tax framework (droits de succession) that applies to real estate situated in France regardless of the nationality or domicile of the deceased or their heirs. Rather than taxing the estate as a whole before distribution — as some other countries do — France charges each heir individually on their inherited share.

Rates and thresholds
The applicable rates depend heavily on the family relationship between the deceased and the heir. Surviving spouses and civil partners (PACS) inherit entirely free of succession duty in France — a substantial benefit compared with many other tax regimes. Between parents and children (en ligne directe), a tax-free allowance of €100,000 per child per parent applies (as of 2025 — verify current thresholds at impots.gouv.fr), above which progressive rates rise from 5% to 45%. Between siblings, rates of 35% to 45% apply after a much smaller allowance. For more distant relatives and unconnected heirs, rates can reach 60%, with only a nominal allowance available.

Non-resident heirs and foreign-owned property
French property is subject to French succession rules on the real estate component regardless of where the heirs are based. Non-resident heirs must discharge any French inheritance tax liability before transfer of title can be registered. France has succession tax treaties with a number of countries that may eliminate or reduce double taxation, so it is important to determine whether such a treaty exists between France and the heir’s country of residence. The EU Succession Regulation (Brussels IV) permits EEA residents to elect for the law of their country of nationality to govern the distribution of assets — but this does not alter the fact that French inheritance tax still applies to the French property itself.

Reporting and payment
The notaire administering the estate will calculate the inheritance tax due and collect it prior to registering the change of ownership. Payment is generally required within six months of the date of death where the death occurred in France, or within twelve months where it occurred abroad. Consult the Conseil Supérieur du Notariat or a qualified French notaire for the allowances and rates that apply to your specific circumstances.

How does gift tax apply to property transfers in France?

France taxes inter vivos gifts of property (donations) under a regime closely aligned with its inheritance tax rules. The same relationship-based rates and allowances that apply to bequests also govern lifetime gifts, which means that gift tax planning and succession planning are, in practice, inseparable.

Rates and allowances
Gifts from parents to children benefit from the same €100,000 per donor per child allowance as inheritance tax (as of 2025 — confirm current thresholds at impots.gouv.fr). Critically, this allowance refreshes every 15 years — a widely used element of estate planning: a parent who makes a gift today and survives a further 15 years can make an additional tax-free gift up to the same amount. Gifts of property between certain family members may also qualify for reduced tax treatment.

Loi de finances 2025 — new relief for family donations
The Loi de finances 2025 introduces a new provision designed to facilitate the transfer of real estate within families: exemption from transfer taxes on family donations made to assist with the purchase or construction of a principal residence. This is a meaningful development for families supporting adult children onto the property ladder and warrants careful exploration with a notaire or tax adviser.

Non-residents gifting or receiving French property
Gift tax applies to French real estate regardless of the nationality or residence of the donor or recipient. A non-resident donor transferring French property to a non-resident family member will still trigger French gift tax on the French assets. The donation must be recorded by a French notaire (or in certain circumstances by a foreign notaire under specific rules), and tax falls due before title is transferred. Where a gift tax treaty exists between France and another country, double taxation on the same transfer may be mitigated — confirm treaty coverage with a qualified adviser.

How is rental income from property taxed in France?

Whether you are tax resident in France or living elsewhere, rental income earned from a property located in France is taxable there. The precise treatment varies according to your residency status, the nature of the letting arrangement, and the tax regime under which you are registered.

Residents
French tax residents declare rental income as part of their annual income tax return. Long-term unfurnished lettings fall within the revenus fonciers framework. Landlords may opt for a flat 30% deduction under the régime micro-foncier — available where gross annual rental income remains below €15,000 — or alternatively elect to itemise actual allowable expenses under the régime réel. Deductible costs under the real regime include mortgage interest, property management charges, maintenance and repair expenditure, insurance premiums, and property taxes.

Non-residents
Non-residents are liable for French income tax on rental receipts from French property. Non-residents pay income tax at a minimum rate of 20% on income up to €29,315 and at 30% above that figure, together with social charges. As of 2025, this includes social charges at 17.2% — reducible to 7.5% for EU/EEA residents who can demonstrate appropriate health coverage. All rental income must be declared regardless of the amount received; there is no minimum reporting threshold.

Furnished lettings (LMNP regime)
Furnished rental income is treated differently from unfurnished lettings. It falls under either the Loueur Meublé Non Professionnel (LMNP) or Loueur Meublé Professionnel (LMP) regime, classed as commercial income rather than property income (BIC — bénéfices industriels et commerciaux). Under LMNP, landlords may claim depreciation (amortissement) on the property and its contents, which can markedly reduce taxable income. A simplified micro-BIC regime offering a 50% flat deduction is available where gross receipts fall below €77,700 per year (as of 2025 — verify the current threshold at impots.gouv.fr).

Short-term and holiday letting
Short-term furnished lettings — for instance via holiday rental platforms — are likewise treated as BIC income. In certain investment contexts, such as furnished tourist residences, a portion of the VAT on the original purchase may be recoverable. However, from 2025, properties rated F or G on the energy performance certificate are subject to letting restrictions, and the most poorly performing properties may not be legally rentable at all from 2025 onwards. Landlords must also register short-term lets with their local mairie and may be required to obtain a registration number in certain municipalities.

Worked example (non-resident, long-term unfurnished letting)
Suppose a non-resident receives €18,000 in gross rental income from an unfurnished French property. Using the micro-foncier 30% deduction, taxable income is €12,600. At the 20% minimum non-resident income tax rate, this produces income tax of €2,520, with social charges of 17.2% (or 7.5% if eligible) levied on the same base. Actual figures will differ depending on individual circumstances — consult impots.gouv.fr for current thresholds and rate bands.

Are there any tax advantages or incentives for buying property in France?

France provides a variety of fiscal incentives connected to property ownership, notably for first-time buyers, investors in furnished lettings, and those acquiring or restoring listed heritage buildings. These schemes are subject to change with each Finance Act, so always verify current eligibility requirements with a qualified adviser or through official government sources.

Prêt à Taux Zéro (PTZ) — zero-interest loan
The Loi de finances 2025 has significantly extended the Prêt à Taux Zéro (PTZ), a flagship government programme intended to support owner-occupation. This scheme enables qualifying first-time buyers to finance part of a new home purchase interest-free. From 1 April 2025 through 31 December 2027, the PTZ — subject to income eligibility and confined to principal residences — is extended to all new-build properties throughout France. This represents a meaningful benefit for eligible first-time buyers and is worth discussing with your bank or mortgage broker.

Reduced DMTO for first-time buyers
First-time buyers are shielded from the 2025 increase in transfer taxes and continue to benefit from lower transfer tax rates, helping to sustain affordability in this segment. Specific conditions apply — verify current eligibility at impots.gouv.fr.

LMNP depreciation and tax efficiency
The Loueur Meublé Non Professionnel (LMNP) regime is a popular structure for investors in furnished rental property. The ability to depreciate both the property and its contents can reduce net taxable rental income substantially — sometimes to zero — making it one of the most fiscally efficient arrangements available to property investors. Under LMP status (professional furnished landlord), losses may be set against other income, though qualification criteria are more demanding.

Historic property incentives
Buildings classified as historic monuments (monuments historiques) or listed structures may attract significant tax relief on restoration expenditure. Under the régime des monuments historiques, restoration costs can in some cases be fully deducted from taxable income. These rules are intricate and rigorously applied — seek out an adviser with specialist expertise in French heritage property regulations.

Non-residents and incentive access
Many of the above incentives — including the PTZ and reduced DMTO for first-time buyers — are generally conditional on purchasing a principal residence in France. Non-residents acquiring a secondary or investment property therefore typically fall outside the scope of these schemes. The LMNP and historic property regimes, by contrast, remain open to non-residents who are subject to French income tax rules.

What are the tax implications for foreign nationals buying property in France?

France imposes no blanket restrictions on foreign nationals purchasing property, and there are no additional transfer taxes or surcharges levied solely on grounds of the buyer’s nationality. That said, there are particular obligations, considerations, and cross-border complications that non-French buyers need to understand before proceeding.

No restriction on foreign ownership
Foreign nationals — resident in France or otherwise — can generally purchase real estate in France on the same basis as French citizens. No minimum holding periods are imposed on foreign owners, no special approval processes are required (outside certain sensitive locations), and no additional purchase taxes are applied by reason of nationality alone.

Reporting obligations in France
Since 1 January 2023, property owners in France have been subject to a new reporting requirement under Article 1418 of the French General Tax Code. This measure enables the tax authorities to identify taxable properties, particularly in the context of the housing tax. All property owners — resident or not — must comply with this obligation, which is fulfilled through the impots.gouv.fr online portal. Non-residents who earn rental income or realise a capital gain in France must also file a French tax return.

Double taxation treaties
Residency status does not shield foreign buyers from French tax: where a property is located in France, any gain is taxable there regardless of where the owner lives. Tax treaties, however, frequently prevent double taxation by allowing French tax to be credited against the liability arising in the owner’s country of residence. France maintains an extensive network of double taxation agreements. Establish whether a treaty exists between France and your country of residence, and how it allocates taxing rights over rental income, capital gains, and inheritance.

IFI wealth tax for non-residents
Non-residents are liable for the French real estate wealth tax (IFI) if the combined net equity in their taxable French real estate assets surpasses €1.3 million on 1 January of the relevant tax year, irrespective of nationality. Where you are not a French tax resident, the IFI applies only to real estate situated in France, including shareholdings in companies to the extent that those shares represent French real estate assets.

Fiscal representation on sale
Non-residents whose taxable capital gain exceeds €150,000 and who are not tax resident in the EU, EEA, or Switzerland are required to appoint a fiscal representative accredited by the French tax authorities. This adds a cost to the disposal process and should be taken into account when planning a sale.

Home-country reporting obligations
Depending on your country of residence, you may be required to declare French property ownership, rental income, or capital gains at home as well as in France. Many countries tax their residents on worldwide income. Always take advice from a professional familiar with both French property taxation and the tax laws of your home country, to avoid inadvertent non-compliance on either side. The French tax authority is accessible at impots.gouv.fr; the dedicated non-resident tax office (Direction des Impôts des Non-Résidents, DINR) handles enquiries from non-resident taxpayers.

Frequently asked questions: property taxes in France

Do I pay capital gains tax if I sell my French property as a non-resident?

Yes — where you are based makes no difference to your French tax liability. A property located in France generates a gain that is taxable in France regardless of your place of residence. The applicable capital gains rate is 19%. Social charges of 17.2% also apply for non-EU/EEA vendors, or a 7.5% solidarity levy for residents of the EU, EEA, UK, or Switzerland. Full income tax exemption applies after 22 years of ownership. Verify current rates at impots.gouv.fr.

Is there a wealth tax on property in France?

The IFI is an annual real estate wealth tax payable where the total net value of taxable French property assets exceeds €1.3 million on 1 January of the tax year. Its rates are progressive, ranging from 0% to 1.5%, and it applies to residents and non-residents alike. Check the current threshold and rates with the French tax authority, as of 2025.

Can I deduct mortgage interest on rental income in France?

Yes. Under the régime réel for unfurnished lettings (revenus fonciers), interest on a loan taken out to acquire or improve the property is a permissible deduction against rental income. Under the LMNP furnished letting regime, interest is also deductible. The simplified micro regimes replace actual costs with a flat deduction rather than itemised expenses. Always confirm current conditions with a French tax adviser or through impots.gouv.fr.

Is my main residence in France exempt from capital gains tax?

Yes — any profit from the sale of a principal residence is entirely tax-free. The property must genuinely be your main home at the time of sale; the tax authorities may scrutinise cases where occupation has been brief or token. Outbuildings and garages sold at the same time are generally exempt as well.

What is the taxe foncière and who has to pay it?

Taxe foncière is an annual levy on all property owners, calculated by reference to the cadastral rental value of the property. It falls on every owner — residents, non-residents, private individuals, and companies alike. The tax is payable even on vacant properties. Bills arrive each year, normally in the autumn. Check your specific liability through impots.gouv.fr.

How much do notary fees cost when buying in France?

Registration duties (droits de mutation) generally represent 5%–6% of the purchase price for existing properties, with total frais de notaire amounting to approximately 7%–8% for resale property and around 2%–3% for new builds, as of 2025. Always request a personalised written estimate (devis) from your notaire before signing, as rates can vary by département. Verify current figures with your notaire or at impots.gouv.fr.

How long do I need to own a French property before capital gains tax no longer applies?

Capital gains tax ceases to apply to a second home after 22 years of ownership; social charges are no longer due after 30 years of ownership. These tapering reliefs apply equally to residents and non-residents under the rules currently in force. Confirm the current relief periods at impots.gouv.fr.

Are there any restrictions on foreign nationals owning property in France?

There are generally no restrictions on foreign nationals acquiring real estate in France, and no additional purchase taxes are imposed solely on grounds of nationality. Non-residents do, however, face specific reporting obligations, and those whose net French real estate exceeds €1.3 million are subject to the IFI wealth tax. Non-residents realising a taxable capital gain above €150,000 outside the EU/EEA/Switzerland must appoint a fiscal representative. Always consult a suitably qualified local adviser with knowledge of French law and of your home country’s regulations.