Buying Property in France as a Non-Resident: Tax & Mortgage Guide

Anyone can buy property in France, but the costs, taxes and financing work differently from home, and the surprises are expensive. From the 7-8% acquisition costs on a resale to the non-resident mortgage rules, the annual property taxes and the tax of letting, a French purchase rewards planning its whole life-cycle.

We walk through the notaire-led process, the real cost of buying, mortgages for non-residents, the annual taxe foncière and taxe d’habitation, and how letting, the IFI, future capital gains and French inheritance fit together, so you buy with your eyes open.

Buying French property from abroad

Buying property in France as a non-resident is entirely possible, France places no general restriction on foreign buyers, but it comes with a specific framework of acquisition costs, taxes and financing rules that differ from those you may know at home. Understanding them before you commit protects your budget and avoids surprises.

Whether you are buying a second home, an investment to let, or a future place to retire, the same essentials apply: the notaire-led process, the acquisition costs, the annual property taxes, and the tax treatment of letting and of a future sale.

This guide walks through the purchase process, the real cost of buying, financing as a non-resident, the ongoing taxes, and how letting, the IFI, capital gains and inheritance fit together, so you buy with your eyes open.

The role of the notaire

French property transactions are handled by a notaire, a public officer who secures the sale, verifies title, collects the taxes due and registers the transfer. The notaire acts for the security of the transaction rather than as one side’s advocate, and a single notaire can act for both buyer and seller (each may also appoint their own at no extra overall cost).

The notaire’s involvement gives French purchases a high level of legal security, but it also means the process and its costs are formalised. Understanding the notaire’s role helps you prepare the right documents and funds.

Working with the notaire, and providing complete information, is central to a smooth French purchase.

The purchase process step by step

A French purchase typically runs: an offer, then a preliminary contract (the compromis or promesse de vente) that commits the parties subject to conditions, a cooling-off period for the buyer, the satisfaction of conditions (notably financing), and finally the acte authentique of sale signed before the notaire, at which ownership and the keys pass.

Between the preliminary contract and completion, several weeks usually pass while the notaire carries out checks and any mortgage is arranged. A deposit is generally paid at the preliminary stage and held securely.

Knowing the sequence lets you plan the timing, the funds and the financing around each step.

Acquisition costs ("frais de notaire")

The headline extra cost is the acquisition costs, loosely called « frais de notaire », most of which are in fact transfer taxes paid to the State, not the notaire’s fee. On an existing (resale) property they amount to roughly 7-8% of the price; on a new-build property they are lower, around 2-3% (with VAT already included in the price).

These costs are paid by the buyer on top of the purchase price and must be budgeted from the outset. The difference between old and new property is significant and can influence what you buy.

Allowing for 7-8% on resale (or 2-3% on new) on top of the price is the first rule of budgeting a French purchase.

Financing: mortgages for non-residents

French banks do lend to non-residents, typically in euros, but on more conservative terms: a larger deposit is usually required (often around 20-30% of the price, sometimes more), and lending is assessed against a debt-service limit (broadly, total loan repayments capped at around a third of income).

Borrower insurance is generally required, and the bank will scrutinise income, existing debts and the currency of your earnings. Rates and terms vary, and a mortgage condition is normally written into the preliminary contract.

Securing a mortgage agreement in principle early helps you buy with confidence and meet the contract’s financing condition.

Currency risk

If your income and savings are in a currency other than the euro, exchange-rate movements affect both the real cost of the purchase and, if you borrow in euros, the real cost of the repayments. A favourable or adverse currency shift can change the effective price materially.

Some buyers manage this with currency planning or by aligning euro income with euro costs. It is a practical risk distinct from the tax framework, but one that can outweigh small tax differences.

Considering currency alongside price and tax gives a true picture of what a French purchase will cost you.

Annual property taxes

Owning French property brings recurring local taxes. The taxe foncière is paid by the owner each year. The taxe d’habitation, abolished for main residences, still applies to second homes, so a non-resident’s French holiday home generally remains subject to it. Amounts vary considerably by commune.

These taxes are a standing cost of ownership, separate from any income tax on letting or the IFI. They should be checked for the specific property and commune before buying.

Budgeting for the taxe foncière and, on a second home, the taxe d’habitation is part of the true cost of owning.

Letting the property

If you let the property, the rental income is taxable in France (the income has a French source), under the micro regime (a flat allowance on gross rent) or the actual regime (deduction of real expenses, and depreciation for furnished lettings), with furnished and unfurnished letting following different rules.

The minimum rate (or the average-rate option) and social levies then apply, with treaty relief in your country of residence. The choice of regime can substantially change the tax on the rents.

Planning the letting regime before you buy helps you model the net rental return. See non-resident taxation →

The IFI on French property

French real estate counts towards the property wealth tax (IFI). A single home is usually below the threshold, but multiple or high-value properties can cross it, making the IFI an annual charge on the net property value above the limit, for non-residents, on French property only.

Acquisition and works loans are deductible against the IFI base, so a mortgaged purchase may generate little IFI while the loan runs. For substantial buyers, the IFI is part of the holding cost.

Factoring the IFI into a larger French purchase keeps the long-term cost realistic. See the IFI guide →

Selling later: capital gains

When you eventually sell, the gain on French property is taxable in France at a proportional rate plus social levies, reduced by allowances that grow with the length of ownership, with possible reliefs and, for some non-EEA sellers, a fiscal representative. The cost base can be increased by qualifying works.

Anticipating the exit at the point of purchase, keeping records of acquisition costs and works, makes the future sale more efficient and the gain easier to compute.

Buying with the eventual sale in mind protects your future net proceeds. See selling French property →

Inheritance and French property

French real estate is always within French inheritance tax, whatever the owner’s residence, because the asset is situated in France. So buying French property brings your heirs within the French inheritance net for that asset, and may engage French forced-heirship rules on devolution.

How you hold the property, directly, through an SCI, or via dismemberment, can assist transmission, though it does not remove French inheritance tax on French-situated property. This is worth planning at the point of purchase.

Considering inheritance when you buy avoids difficulties for your heirs later. See French inheritance tax →

Holding structures: direct or SCI

French property can be held directly in your own name or through a company, most commonly an SCI (société civile immobilière). An SCI can ease joint ownership and transmission (shares can be gifted gradually), but it adds administration and does not remove French property taxes or the IFI look-through.

Direct ownership is simpler and often appropriate for a single home; an SCI can suit family or investment holdings with transmission goals. The right choice depends on your objectives and should weigh the added complexity.

Choosing the holding structure deliberately, with its tax and civil effects in mind, is an important early decision.

Co-ownership (copropriété)

Apartments are typically held in copropriété (co-ownership of a building), which carries service charges for shared areas and services, and decisions taken collectively by the owners. These charges are a recurring cost and vary with the building and its amenities.

Before buying an apartment, it is worth checking the level of charges, the state of the building’s finances and any planned works, which can add significant future costs.

Understanding the copropriété and its charges is essential when buying an apartment in France.

Costs of ownership beyond tax

Beyond taxes, owning French property carries running costs: insurance, maintenance, copropriété charges for apartments, utilities, and management fees if you let through an agency. For a second home used part of the year, these costs run regardless of occupation.

Adding these to the acquisition costs and the annual taxes gives the true cost of ownership, which is often higher than buyers initially assume. A realistic budget includes them all.

Budgeting for the full running costs, not just the price and taxes, prevents unwelcome surprises.

Buying to retire in France

If you buy intending to retire in France, the picture changes: becoming a French resident brings worldwide income, including foreign pensions, with treaty relief, into the French net, and the property becomes your main home (with its own tax consequences). The purchase is then part of a wider relocation.

Planning the residency change alongside the purchase, and understanding how your pensions will be taxed, ensures the move is financially sound, not just the property well chosen.

Aligning a retirement purchase with a residency and pension plan is the sensible approach. See French pensions and retirement →

Common mistakes when buying

Frequent errors include: underestimating acquisition costs (the 7-8% on resale); not securing financing terms early; overlooking the taxe d’habitation on a second home; ignoring copropriété charges; failing to plan the letting regime, the IFI or the eventual sale; and not considering inheritance at the outset.

Each can add cost or complexity that careful preparation would have avoided. A French purchase rewards planning the whole life-cycle of ownership, not just the transaction.

Avoiding these mistakes makes a French purchase a sound, well-understood investment.

When advice pays off

Buying French property warrants advice when you are financing as a non-resident, buying to let or to retire, holding through a structure, or buying substantial value that engages the IFI. The interaction of acquisition costs, ongoing taxes, letting, the IFI, gains and inheritance is genuinely multi-layered.

A clear diagnosis sets out the real cost of buying and holding, the tax of letting, the future sale and the inheritance position, turning an opaque purchase into a planned one.

The assessment is designed to map your French position. Start the assessment →

New-build vs resale

The choice between new-build and resale has tax consequences. New property carries lower acquisition costs (around 2-3%, VAT included) and modern standards, but often a higher headline price; resale property carries higher acquisition costs (7-8%) but more choice and established locations.

The right choice depends on your priorities and budget, but the difference in acquisition costs alone, several percent of the price, is a real factor in the comparison.

Weighing the acquisition-cost difference is part of choosing between new and resale property.

Deposit and proof of funds

French purchases require a deposit at the preliminary contract and, at completion, the balance plus acquisition costs, transferred securely to the notaire. Banks and notaires apply anti-money-laundering checks, so proof of the source of funds is expected, especially for non-resident buyers.

Preparing clear evidence of your funds in advance avoids delays at completion. International transfers should be arranged with timing and currency in mind.

Organising the deposit, the funds and their documentation early keeps the purchase on schedule.

In summary

Buying French property as a non-resident is straightforward in principle but carries a defined framework: notaire-led purchase, acquisition costs of about 7-8% on resale (2-3% on new), conservative non-resident mortgages, annual taxe foncière and, on second homes, taxe d’habitation, plus the tax of letting, the IFI on larger holdings, future capital gains and French inheritance on the asset.

Planned across its whole life-cycle, purchase, holding, letting, sale and transmission, a French purchase holds no surprises. Treated as just a transaction, it can cost more than expected.

Prepare the full picture before you buy, and French property becomes a sound, well-understood investment.

Joint purchases and spouses

Buying jointly, with a spouse, partner or family, raises questions of ownership shares, matrimonial regime and, on death, devolution. French law attaches consequences to how co-buyers hold the property, which differ from those in other countries and can affect both tax and succession.

For couples buying in France, the matrimonial regime and the form of co-ownership are worth considering at the outset, as they shape what happens on separation or death. The notaire can explain the options.

Deciding how to hold a French property jointly is an early choice with lasting tax and succession effects.

Off-plan and renovation purchases

Buying off-plan (VEFA, a new property bought before completion) or a property to renovate has specific features: staged payments and guarantees for off-plan, and, for renovations, the treatment of works (which can later increase the cost base for capital gains and may be deductible against rental income).

These routes can offer value but carry their own risks and timelines. Documenting works carefully matters both for the eventual sale and, where let, for the rental tax position.

Understanding the off-plan and renovation specifics helps you choose and document the purchase well.

Using the property part of the year

Many non-residents buy a French second home used for part of the year. Such a property remains subject to the taxe foncière and the taxe d’habitation, and any periods of letting generate French rental income. Time spent in France should also be watched so it does not inadvertently affect tax residency.

A second home is a lifestyle asset with standing costs whether or not it is occupied, and occasional letting brings it into the French rental-tax rules. Both belong in the budget.

Planning the use, costs and any letting of a second home gives a realistic view of owning one.

In one sentence

Buying French property is open to non-residents and secure through the notaire, but the real cost is the price plus acquisition costs, financing on conservative terms, annual local taxes, and the longer tax of letting, the IFI, gains and inheritance.

Plan the whole life-cycle of ownership, and a French purchase is a sound, predictable investment; treat it as a one-off transaction, and the running and exit costs can surprise you.

Budget the full picture before you sign, that is the single most useful rule for buying in France.

Is French property a good investment?

Whether French property is a good investment depends on your goals, lifestyle, letting yield, or long-term capital, and on buying well after all costs. The acquisition costs, annual taxes and, for larger holdings, the IFI mean the property must perform over time to justify the total outlay.

For a lifestyle second home, the question is partly non-financial; for a pure investment, the net rental yield after French tax and costs, and the prospects for the local market, are what matter. Both deserve a clear-eyed calculation.

Judging the investment on the full, after-cost picture, not the headline price, is the key to a sound French purchase.

Frequently asked questions

Related English guides

Tax for non-residents · Selling French property · Property wealth tax (IFI) · French inheritance tax · Pensions & retirement

Sources: French property and tax framework (notaire process, transfer taxes/« frais de notaire », taxe foncière, taxe d’habitation on second homes); banking practice for non-resident mortgages; IFI, property capital gains and inheritance rules cross-referenced. Educational content, current as of June 2026; not a substitute for personalised advice.