Invest in France
Buyer's Guide
Buying property in France:
THE ULTIMATE GUIDE
Buying property in Paris or elsewhere in France is a dream but might feel overwhelming if you’re not used to how things work here, especially with the legal and business practices. Fortunately, with DE TILLY PARIS expert guidance, you’ll discover that French laws are straightforward and protective. Our buyer’s guide is here to demystify the process of buying real estate in Paris (and France), making you feel more confident as you move forward with your investment.
BUYING AN APARTMENT IN PARIS HAS NERVER BEEN THAT EASY
France has one of the safest, most stable, and best-regulated property markets in the world, giving our American clients the confidence to buy with both peace of mind and smart decision-making.
Duration : 3 - 4 Months
1
Engaging a notaire
AN ESSENTIAL STEP
While sellers usually hire their own Notaire, it’s a good idea for you to have your own. A Notaire is a highly trained lawyer appointed by the French government who ensures that everything is accurate and complete. They help protect your interests, provide advice, research on the property, and handle local market and contracts. Only a Notaire can officially register a real estate transaction in France. Similar to a real estate attorney in the U.S., a Notaire will look out for your best interests. It’s important to hire one before you find your dream property since contracts need to be signed quickly, as accepted offers are not bidding. If you are not in Paris for the contract signature or closing we advise you to make a power of attorney.
2
Financing
GET A MORTGAGE IN FRANCE IS POSSIBLE !
Mortgages rates in France are lower than the US. So, If you plan to get a mortgage, it’s best to apply before you start looking for a property. Applying early helps you know what you can afford and makes your purchase offer more appealing to sellers. Keep in mind: getting a mortgage for a French property through a US bank is usually not possible because they can’t assess the property’s value. However, you can often get a mortgage in France through a specialist mortgage broker if you can pay a 30% down payment. DE TILLY PARIS will connect you to the best Brokerages companies in France.
3
Offer
MAKING AN OFFER IS NOT BIDDING
Once we found your dream property. We will put together a financial proposal that outlines the offer, including the purchase price, ,whether you’ll need a loan to complete the transaction and other contingencies. Unlike other markets, France doesn’t operate on a bidding system. Once you and the seller agree on the terms, the negotiation phase wraps up, and the legal process begins.
4
Case send to notaires
INITIAL PURCHASE AGREEMENT
When the seller agrees to your offer, your notary will work with the seller’s notary to create the sale agreement, also known as ‘Promesse de vente’ or ‘Compromis de vente’. As real estate experts, we will carefully check everything beforehand, and your notary will look over all the legal parts.
*Important! At this stage, neither you nor the seller are under contract yet. Either party can still decide to walk away. That’s why you need a proactive notary working on the deal immediately. If you are not in Paris you can give a power of attorney to your Notaire.
5
Signature of contract
INITIAL PURCHASE AGREEMENT
The agreement becomes official when both sides sign it, and you pay a deposit of 5 to 10% (This sum is deducted from the total if the transaction concludes successfully). After signing, you, the buyer, have 10 days to change your mind without having to give a reason. If you finance, you can add a mortgage continency ”clause suspensive de pret” to the contract. You will normally have 30 to 45 days to prove you have a mortgage offer or produce at least two French bank rejections.
6
Due diligence - title
DUE DILIGENCE – TITTLE
Once the contract is signed, your notaire must verify regulatory and legal formalities for the property and arrange for payment of your property purchase taxes (like stamp duty) to be paid. For example, the notaire verifies that the seller is the free and clear owner of the property, that the home is termite- free, and that the home has the requisite urban-planning approval. Plan to allow at least 2/3 months after the date of signature of the initial agreement for the final sales transaction to give the notaire time to acquire all the necessary documents.
7
Closing
SEALING THE DEAL
We will visit the property 24 hours before the signature to verify if everything is good with your investment. Finalizing the sale requires signing the act of sale, often at the seller’s notary’s office (or through power of attorney). Modernly, the contract is digitally signed. Finally, the seller will give you your property keys. Welcome Home 😉
FAQ
Specificity of the french market
Is there an MLS for the Paris Real Estate ?
Unlike in the U.S., Paris doesn’t have an unified MLS system where all properties for sale are listed. Instead, the Parisian real estate market is highly fragmented. More than 3,500 independent real estate agencies operate across the city, each managing its own set of properties. As a result, to get a comprehensive view of available properties, you might need to visit multiple websites or contact various agencies directly. Listings agents represent only the seller.
That’s why you need a buying agent like DE TILLY PARIS to represent your interest.
What is a notaire? and what is his role?
Unlike a notary public in the U.S., a French Notaire is a highly trained lawyer appointed by the French government. Notaires represent the French State, and only they can register and approve a real estate sale in France. They ensure everything is legally sound, from drafting the necessary documents to officially recording the transfer of property. They verify that the seller owns the property, ensure there are no lingering mortgages, confirm that payment is complete, and make sure all taxes are properly paid. The “Notaire’s fees” (which are part of the closing costs) are set by law and typically represent an average of 7% to 7.5% of the real estate transaction, payable only by the buyer, regardless of whether one or two Notaires are involved. The main closing costs include Land Registry Taxes (“Taxes de Publicité Foncière”), which are 5.81% of the apartment’s purchase price, and Notaire’s fees, which are 0.825%, plus 20% VAT (Value Added Tax).
https://www.anil.org/outils/outils-de-calcul/frais-dacquisition-dits-frais-de-notaire/
DE TILLY PARIS recommends that you hire your own Notaire and can introduce you to the best Notaires who specialize in working with foreign buyers.
Are there any restrictions for Americans citizens (or foreign buyers) to own a property in Paris?
No, Buying property in Paris or anywhere in France, whether as a second home or for a permanent move, is “simple” for Americans. However, owning property in France does not grant you a residency visa, so you’ll need to adhere to the 90/180-day rule (stay less than 90 days within a 180-day period). Regarding taxes, if you live in the U.S. and simply own a French home, you typically won’t need to file a French tax return. However, if you earn rental or investment income from your French property, you must file a French tax return and may owe French taxes. The good news is that the U.S.-France tax treaty helps prevent double taxation for most Americans in France.
DE TILLY PARIS will connect you with top fiscal advisors to assist you.
What type of property I can buy?
There are two main types of residential ownership in Paris: apartments and houses. Most properties in Paris are apartments, which are similar to condos in the U.S. You own a share of the building and live in a “copropriété” (co-ownership) with other residents, sharing the building’s costs (like HOA. sometimes10 times lower than NYC). There’s no need for condo applications or board approval, and co-ops don’t exist in Paris or anywhere in France.
The second type of property you can buy is a house, known as a “Maison” (house) or a more prestigious, larger property called a “Hôtel Particulier” (private mansion). As in the U.S., you’ll need to maintain the property and pay your taxes independently, as you are the sole owner.
DE TILLY PARIS will give you exclusive access to 100% of the apartments and houses available in Paris.
Property inspection in Paris: How can I ensure the property I'm considering is in good condition?
First, a seller in Paris must hire a certified inspector, known as a “Diagnostiqueur,” to create a mandatory diagnostic report. This report includes:
- Energy Performance Diagnostic(“Diagnostic performance énergetique” = DPE)
- Measure the apartment in SQM with Carrez Law (“loi Carrez”)
- Lead exposure
- Termites
- Asbestos control
- Electrical installation if it’s over 15 years old
- Gas installation if it’s over 15 years old
- Natural and technological risks
This comprehensive report reassures buyers before they make an offer. At DE TILLY PARIS, we will explain everything to you and translate all the information into English. If we have any doubts or questions about the condition of an apartment, we will contact the appropriate experts to further inspect the property.
What is the “loi Carrez”?
he Loi Carrez is a law that ensures the precise measurement of an apartment’s living area in SQM be stated in the sale contract. It only includes areas with a ceiling height of at least 1.8 meters (about 5.9 feet) and excludes areas like staircases, walls, and balconies. On the other hand, “surface au sol” (ground area) refers to the total floor area, including all spaces under sloped ceilings.
Unlike in the U.S., where apartment sizes are often not regulated by law and can sometimes be overstated (Parisian apartment feels much bigger for similar size), the Loi Carrez protects buyers by certifying the exact square footage, offering transparency and preventing any misleading claims about the property’s size. This makes it a valuable protection for anyone purchasing an apartment in France.
What is DPE = “Diagnotic Performance Energetique”?
The Energy Performance Diagnostic (DPE) tool evaluates the energy efficiency of a home or building by assessing its energy consumption and its impact on greenhouse gas emissions (rated from A to G). This diagnostic is now crucial for rentals, as properties with high energy consumption may soon be banned from the rental market. Specifically, properties rated G will be banned starting in 2025, F-rated properties in 2028, and E-rated properties in 2034.
At DE TILLY PARIS, we can guide you through understanding the DPE. A lower rating can be a strong negotiation point, and we’ll advise you on the necessary renovation work to improve the energy efficiency of your property.
Example :
What are the condition to rent my apartment in Paris?
You can start renting your apartment from day one! No board approval is required. There are two main types of leases: furnished and unfurnished. The key difference is the lease duration: furnished leases last 1 year, while unfurnished leases are at least 3 years. These leases are also taxed differently.
Paris has introduced Cap Rent, called ‘encadrement des loyers,’ to keep housing affordable. It sets a maximum rent based on ‘reference rents,’ which depend on location, property type, and other factors. If you want to avoid this rent cap, you can opt for a ‘mobility lease’ (from 1 to 10 months) or a ‘code civil lease’ (for more than 11 months).
DE TILLY PARIS experts will guide you on the best lease option for your investment.
Can I rent my apartment on Airbnb as a non-resident?
No. Short-term rentals are only allowed for full-time Paris residents who declare their apartment as their main home. They can rent their apartment for up to 120 days per year. To do this, you must register with Paris City Hall and provide proof that the apartment is your primary residence to obtain a registration number. Fortunately , while short-term rentals are limited to full-time residents, there are several options for non-resident owners. For example, with a ”mobility lease” or “company leases” offering flexibility for those looking to rent for a month or more without cap rent.
Do I need a visa to buy property in Paris? (keyword Visa for property purchase in France)
No, you don’t need a visa to buy property in Paris or anywhere in France. A visa is only required if you plan to stay longer than 90 days within a 180-day period in France or the Schengen area. If you need help staying longer or want to become a permanent resident, DE TILLY PARIS works closely with immigration attorneys who can assist you.
What are the rules and regulations regarding renovations in Parisian apartments?
Renovating an apartment in Paris is easier and less expensive than in major U.S. cities. For light renovations, such as painting, flooring, electrical work, or modifying interior partitions, you generally won’t need any special authorization. You just need to follow the co-owner rules and work respectfully with your neighbors. For example, opening an American-style kitchen or splitting a living room to create a bedroom can be done without issue.
However, for major renovations—like altering the entire floor plan, modifying load-bearing walls, opening ceilings to access attics, or making changes to common areas or the building’s exterior—you will need approval from the co-ownership management, and sometimes from the City of Paris. DE TILLY PARIS will guide you on what’s required for each case and connect you with the best professionals to ensure your renovation is done legally.
Which entity to choose as an American to buy an apartment in Paris?
You can own your property in France in several ways, each offering potential tax advantages. Since every situation is unique, DE TILLY PARIS will introduce you to French/American tax advisors who can collaborate with your U.S. CPA (if you have one) to determine the best structure for you:
- In your own name (or joint name, adult children, future heirs):
- limited company (English or French)
- SARL (Société à Responsabilité Limitée)
- SCI (Société Civile Immobilière), the most common structure for owning and managing property in France
Financing
As an American citizens, can I finance my apartment in Paris with a French Mortgage?
Yes, foreign buyers can obtain financing from French banks, though they may face some extra conditions. DE TILLY PARIS will introduce you to top mortgage brokers specializing in working with foreigners, especially American citizens. Expect to pay around 1% of the loan amount in mortgage broker fees.
How much of a down payment is typically required? (keyword: Paris apartment down payment)
Generally, banks offer loans covering 70% to 80% of the property’s value. In Paris, the average is 25 to 30% downpayment needed.
What are the average interest rates for mortgages in France?
Mortgage Rates are lower than in the U.S. It was close to 1% in 2020. In mid-2024 it is around 3.5% / 4%
Add French Mortgage Calculator: Calculate your Mortgage cost.
Cost of buying and ownership
What are French real estate Tax I need to pay as a non-resident ?
As a property owner in France, you’ll need to pay different types of taxes. First, there are the local taxes you pay annually: Property Tax (“taxe foncière”) and, if it’s a secondary home, the Housing Tax (“taxe d’habitation”). Additionally, if your property is valued over €1.3M, you’ll be subject to the French Real Estate Wealth Tax, which ranges from 0.5% to 1.5% each year.
If the property is not your primary residence, you’ll also have to pay a Capital Gains Tax of 19% when you sell it. Non-residents, including Americans, are exempt from the French social charges but must pay a 7.5% solidarity tax. Tapered relief on this tax begins after six years of ownership, and after 22 years, no Capital Gains Tax is due.
For comparison, taxes in Paris are generally lower than in major U.S. cities like New York. For instance, a €1.5M apartment in Paris might cost around €2,000 per year in Property Tax, and about €3,900 per year in Wealth Tax.
What are the average HOA in Paris?
The good news is that HOA fees in Paris are much lower than those for condos in the U.S. On average, they are about €40 per square meter per year. So, for a 100 sqm (1,076 sqft) apartment, this would be around €4,000 per year, or €333 per month, in a nice building with a live-in concierge (super). The cost of electricity and gas will depend on your setup, but sometimes hot water and heating are provided by the building and included in the HOA fees. Overall, the carrying costs can be up to 10 times cheaper than in cities like Miami or New York.
What are the typical closing costs associated with buying an apartment in Paris?
When you buy an apartment in Paris, the closing costs are around 7% to 7.5% of the purchase price and are paid by the buyer. This includes Land Registry Taxes (‘Taxes de Publicité Foncière’), which are 5.81% of the purchase price, and Notaire fees, which are 0.825%, plus 19.6% VAT. If you’re getting a mortgage, expect to pay around 1% of the loan amount in mortgage broker fees.
Sellers don’t pay closing costs, but they may have to pay capital gains tax if they are selling a secondary residence and haven’t owned it for at least 22 years.
Real estate broker In Paris
How much are real estate broker fees in Paris? And who pays it?
Broker fees in France usually range from 3% to 6%, including 20% VAT. These fees are typically not shared with other agencies because real estate agencies in France don’t usually share listings or commissions. In most cases, the seller pays the broker fees, which benefits the buyer since they won’t have to pay Notaire fees on the commission. However, in some cases, it might be better for the buyer to pay the commission, especially when considering future capital gains tax. DE TILLY PARIS will explain these situations clearly regarding broker fee commissions.
How much will cost a Buyer’s agent like DE TILLY PARIS?
Our fees average 3% (plus 20% VAT) of the real estate transaction. The listing agent’s broker fees are included in the price you pay. Our expertise lies in negotiating both the best price for the apartment and the listing agent’s commission. Beyond finding your dream apartment, we typically save our buyers an average of 7% to 12% off the apartment’s price compared to if they had purchased on their own. These savings more than cover our fees.
When I have to pay DE TILLY PARIS buyer’s fees?
Our commission will be paid by the buyer only at the closing.
Is DE TILLY PARIS licensed real estate in Paris?
Yes of course, compare to almost all of our U.S. competitors we own a real estate license in Paris named Transaction Card (“Carte de Transaction”). We also are licensed Broker in New York : www.detillyrealestate.com.
