Alpine Property Resources, information on Notaires, loans, tax when buying property in France

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FINANCES | COST CALCULATOR | PRINTABLE VERSION

COST CALCULATOR

> Stamp Duty and Legal Fees ('Frais de Notaire')
> Monthly Loan Repayments ('Remboursements mensuelles')
> Capital Gains Tax ('Impôts sur la Plus Value')

STAMP DUTY AND LEGAL FEES ('Frais de Notaire')

Both Stamp Duty and Legal Fees are paid to the Notaire at the time of purchase. These costs are in addition to the purchase price and should be included in your budget calculations.

Our calculator is designed to allow you to estimate this element in your budget. The actual figure you pay may well vary slightly from our estimate due to variations in the type of purchase contract and loan contract used by your Notaire. You should therefore confirm this figure with the Notaire before signing the Compromis de Vente.

The amount of fees and duty depend on several factors:

1. The purchase price recorded in the Acte de Vente. Interestingly, any furniture included in the sale is excluded from this figure.

2. The age of the property. New properties, less than 5 years old, have reduced duty. However, they are subject to VAT, this is usually included in the purchase price.

3. The amount of any loan used to purchase the property. Duty and fees are calculated separately on the amount of the loan.

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MONTHLY LOAN REPAYMENTS ('Remboursements mensuelles')

This calculator will help you estimate the monthly repayments which you can expect to pay for the size of loan you are contemplating

Our calculator is designed to allow you to make an estimate of this cost. The actual figure you pay may well vary slightly from our estimate due to variations in the type of loan and calculation method used by your Bank. You should therefore confirm this figure with the Bank before committing to the loan and the purchase.

The major factors to consider when considering your loan are:

1. The amount of the loan. Our experience shows that French banks rarely lend over 80% of the purchase price.

2. The period of the loan. In France the usual period of repayment is 15 years. Other periods are howover available.

3. The interest rate charged by the bank. In France it is common to have an interest rate fixed for the entire period of repayment of the loan. These loans have a higher interest rate (perhaps 0.75% higher) than variable rate loans, which are also common. You can visit this site to see a review of current interest rates in France.

4. Life Insurance. This is compulsory and is usually quoted as an additional percentage (perhaps 0.4%). This should be added to the quoted interest rate before using our calculator.

5. Set up costs ('Frais du Dossier'). These represent a small fixed cost taken by the bank to set up the loan. These are very negotiable. Remember to ask about these when you meet your banker to discuss the loan.

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CAPITAL GAINS TAX ('Impôts sur la Plus Value')

This calculator will help you estimate the Capital Gains Tax which you can expect to pay on selling a property in France. If the home is your main residence at the time of sale, you are exempt from this tax.

Our calculator is designed to allow you to make an estimate of this cost. The actual figure you pay may well vary slightly from our estimate due to variations in the use of the various allowances which are available to you. You should therefore confirm this figure with the Notaire before committing to the sale of your property. The Notaire will deduct the amount of the tax from the sale proceeds.

The major issues taken into account when calculating this tax are:

1. The sale price. Allowance can be made of a limited number of selling expenses, the most usual being our commission.

2. The length of time for which you have owned the property. The Capital Gain is reduced by 10% per year starting in the sixth year of ownership. Thus after 15 years of ownership, no Capital Gains Tax is due.

3. The original purchase price. This cost can be increased by allowable costs such as purchase expenses and renovation costs. There is a standard allowance for each of these which we have used in our calculator.

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