From April 2025, buying old properties in France’s real estate market will be more expensive due to rising notary fees. Understand the new financial landscape.
In a notable shift within the France’s real estate market landscape, prospective buyers of older properties may soon find themselves grappling with increased financial obligations. As of April 1st, the anticipated rise in “notary fees” is poised to take effect, a consequence of recent legislative measures. The departments have received the green light to temporarily augment the rate of registration fees, a maneuver aimed at addressing the plummeting revenues from the free transfer tax (DMTO). This tax, collected by notaries on behalf of the tax authorities during property transactions, has seen a significant downturn, thereby straining the fiscal health of local governments.
To alleviate this financial malaise, the Finance Act for 2025 grants departments the option to raise the departmental rate of registration fees applicable to the sale of older buildings by an additional 0.5% over a three-year period. Currently set at 4.5%, barring a few rare exceptions, this rate could potentially escalate to 5%. However, it is crucial to note that this increase is not automatic; it necessitates a deliberative process within the departmental councils to move forward.
In a bid to safeguard the nascent recovery in real estate transactions, first-time buyers will remain insulated from this impending hike, with the departmental rate for them steadfastly maintained at 4.5%. This strategic exemption underscores the delicate balance that must be struck between generating necessary revenue for local authorities and fostering an environment conducive to property market revitalization. As the landscape evolves, stakeholders will undoubtedly be keenly observing the implications of these changes on both the France’s real estate market and the broader economic context.
