Real estate investment in France

Frequently asked questions

• Can a foreigner buy property in France?

  

  Yes, foreigners in France can buy and sell real estate without restrictions, rent it out.

• Are property prices falling in France?

  

  No. While real estate prices in France are growing slower than the European Union average, they still grow by approximately 1,1% each quarter.

• What is the average cost of a house in France?

  

  The average cost of residential real estate in France is €5,394 per 1 m².

• What are the pitfalls of buying a house in France?

  

  Common things to be cautious of are:

  • buying property for renovation — the estimated costs of renovative works can be significant;

  • additional fees and taxes that accompany the property purchase;

  • French inheritance law — those buying real estate in France must put a certain clause into the sales contract from the get-go. Without that, they won’t be able to put the property in their will.

  France also doesn’t have any residency or citizenship by investment programs.

• How much tax do you pay when buying a house in France?

  

  Property owners in France pay one of the annual taxes: property and residence taxes are paid in the form of a tax on imputed rental income. The amount of tax depends on the type of property and location. For an apartment in Paris, the owners pay about €1000 per year.

  The property tax is 1,5%— 3% of the original cost of the property. It is paid by the owners of a property that costs more than €1,300,000.