Buying property in France may cost more from April due to rising notaire fees. This change could significantly affect your investment plans, so stay informed and prepare accordingly.
Buying property in France is about to get a tad pricier, starting April 1, thanks to an increase in ‘notaire fees’—those pesky costs that seem to pop up when you least expect them. Under the new 2025 budget, departments across the country will have the option to hike these fees by 0.5%, pushing the cap from 4.5% to a maximum of 5%. This change isn’t just a fleeting whim; it’s set to be in effect from April 1, 2025, until March 2028, giving local authorities plenty of time to decide how much they want to squeeze from property buyers.
Now, before you start panicking, there’s a silver lining for first-time buyers. If you’re purchasing your first home and it’s going to be your main residence, you’ll be exempt from this fee increase—though you’ll still have to pay the current rates. So, if you’re eyeing a charming little abode in the countryside, you might want to act fast before the fees rise.
To put this into perspective, if you’re looking at a €300,000 property, the notaire fees—which typically hover around 7-8%—will jump from approximately €22,500 to about €24,000. That’s an extra €1,500, which could buy you a lot of croissants or a nice bottle of Bordeaux!
But what exactly are these notaire fees? Officially known as droits de mutation à titre onéreux (DMTO), these fees are not pocketed by the notaire, the legal professional overseeing the sale. Instead, they’re funneled straight to local authorities, serving as a crucial source of funding for various local projects. The government is banking on this fee increase to help fill a funding gap in local budgets, while also nudging councils to tighten their belts elsewhere.
Interestingly, this move to increase notaire fees was initially part of ex-prime minister Michel Barnier’s budget proposal, which was later scrapped. The current prime minister, François Bayrou, has managed to reduce the budget cuts local governments need to make to around €2.2 billion, a significant drop from what was previously proposed.
As for which departments will raise these fees, it’s largely up to them. However, it’s widely expected that most will jump on the bandwagon. Paris has already signaled its intention to implement the fee increase, and it’s likely that other departments will soon follow suit. So, if you’re planning to buy property in France, it might be wise to keep an eye on these developments—your wallet will thank you!
