17 March 2025
For many UK residents, buying property in France is the first step toward making their dream relocation a reality. France’s stunning landscapes, rich culture, and world-renowned cuisine are just a few reasons it has become a top choice for UK buyers looking to buy property overseas.
However, just like in the UK, purchasing a home comes with its own set of taxes. In France, most of these taxes are distributed to the French Government by a ‘Notary’, a neutral legal professional appointed by the French government who handles your tax payments on your behalf. The Notary will require a certain set of fees to handle your property purchase.1
To make things simpler, we’ve put together this guide to walk you through the key property taxes in France to be aware of – covering both the taxes you’ll pay at the time of purchase and those that apply on an ongoing basis – as well as the fees you’ll need to pay the Notary to manage the process.
While this guide might not include every tax associated with overseas property buying, we hope it serves as a good starting point as you plan your property purchase.
Which taxes apply to property in France?
If you’re wondering whether property tax applies in France, the short answer is yes. Typically, there are two stages during the property buying process when you need to think about taxes:
- When you buy a property: When buying a property in France, there are several purchase taxes and fees you must familiarise yourself with. Most of these fees will be paid directly to the Notary.
- After you buy a property: When you become a homeowner in France, you’ll have to pay a set of taxes on an ongoing basis, just like in the UK.
Understanding tax residency in France
It’s important to note that once you’ve bought your property in France, your ongoing tax considerations could change if you stay in the country long enough to be considered a French tax resident. Here are a few rules to keep in mind:
- The ‘183 day rule’: If you spend more than 183 days in France during a calendar year as a UK resident, you could be considered a French resident for tax purposes.2
- Professional activity: If you work as a salaried employee or non-wage earner in France, you could be considered a French resident by the French government.3
- Economic interests: If France is the place of your main investments, the head office for your business dealings, or the centre of your professional activities, you might need to pay certain taxes that are usually reserved for French residents.3
Taxes on purchasing property in France
The first types of property tax in France to be aware of apply when you first purchase a property. If you’re a UK resident buying in France, you won’t pay most of the property taxes directly to the government. Instead, all payments go to your appointed Notary, who acts as a neutral legal professional appointed by the French government.1
From there, the Notary calculates and collects property purchase taxes and then distributes them to the government on your behalf. That means that, as a UK buyer, you’ll be responsible for covering the Notary’s fees (frais de Notary), which include:1
- Taxes: Amounts the Notary is required to collect and pay to the State and local authorities on your behalf. In the case of property, this could be the property taxes at the time you buy and sell a property.
- Disbursements: Costs the Notary incurs on behalf of the buyer, such as document production fees.
- Notary’s fee: Expenses from the Notary (emoluments, fees).
Notary fees also differ depending on whether the property is a new build or a resale:
Resale properties
For second-hand properties, Notary fees typically amount to around 7-8% of the property’s purchase price.4
These fees include the Property Transfer Tax, known as ‘droit de mutation’ in French, which is similar to stamp duty in the UK. This tax varies slightly depending on which regional administrative and governing division – known as ‘departments’ in France – your property is based in.
New-build properties
For new builds, Notary fees are lower and are usually around 2-3% of the property price.4 Additionally, if your new property was completed within the last five years it will be subject to VAT (TVA in France) at a rate of 20%.5 This should already be included in the advertised price.
Taxes on property ownership in France
Once you’ve secured your dream home, you’ll need to familiarise yourself with the different types of ongoing property tax in France. These include:
Annual property tax – Taxe Foncière
Taxe Foncière is an annual property tax paid in October by anyone who owns a taxable property as of 1 January that year. It applies to residential, commercial and industrial properties, regardless of whether they’re occupied. 6
The tax is based on the ‘cadastral value’ of the property, which is an estimate of the property’s rental income potential set by the local tax office. This value is multiplied by a rate determined by local authorities, meaning the amount you need to pay varies by municipality.7
It’s important to note that late payment can incur a 10% penalty increase, but your Notary should inform the relevant tax offices that you have purchased a French property.8
Housing tax – Taxe d’habitation
As of 1 January 2023, Taxe d’habitation has been abolished for primary residences. However, it still applies to second homes and vacant related structures such as garages and outbuildings.9
While some exemptions apply to low-income households and certain individuals, if you don’t fall into either of those categories, the tax is payable by whoever is living in the property on 1 January each year. If you rent out your property, the occupier is responsible for paying it. Some exemptions apply for low-income households and certain individuals.10
Wealth tax – Impôt sur la Fortune Immobilière (IFI)
Not to be confused with capital gains tax, wealth tax (Impôt sur la Fortune Immobilière – IFI) applies if your net household real estate assets exceed €1,300,000 in value. This is applied at a rate of 0.5% to 1.5%, depending on your total net taxable wealth.11
Tax on rental income
If you’re a UK resident and start to earn rental income from a property in France, you are subject to French taxation on that income. Here’s how it works:
- Unfurnished properties: Income generated from unfurnished properties is classed as property income (revenus fonciers). For full details of the rental income taxes that might apply to these properties, you can consult the French Government website.
- Furnished properties: Income generated from furnished properties is classed as business income (bénéfices industriels et commerciaux). For the full details of rental income taxes that might apply to furnished properties, you can consult the French Government website.
Lumon: helping you simplify your overseas property purchase
Property Tax in France is complex, and taxes are always subject to change. That’s why we’d recommend consulting a tax professional when navigating taxes abroad. Lumon specialises in helping you manage the currency side of your property purchase, ensuring your international payments align with your property goals.
Our service is tailored to your requirements, ensuring you can benefit from tools and market insights to help shield your property budget against currency risk. Your dedicated currency specialist can guide you through every step of your property purchase, so you can get great value when you send money to France.
When you buy:
- Forward contracts: Our forward contract options allow you to fix an exchange rate before the property is purchased or secure the price of a foreign property sale. This gives you the certainty of knowing what the value will be in your desired currency when the time comes to transfer.
- Experienced personal account manager: Your experienced personal account manager will help you develop a currency strategy that empowers you to make your property purchase with confidence.
- Lumon EU bank accounts: Our EU bank accounts facilitate the direct receipt of funds from foreign solicitors.
After you buy:
- Online account: Set up your online account so you can take control of your ongoing property payments and make them in minutes.
- Regular Payment Plan: Once you know the property payments that you’ll need to pay on an ongoing basis, Lumon can set up a Regular Payment Plan so you can automate recurring transactions with ease.
Contact Lumon to learn more about how we can help you manage your international payments when buying property abroad.
1 Republique Francaise – Notary fees: what is it?
2 Republique Francaise – Determination of tax residency
3 Republique Francaise – Employees working outside of France
4 Notarys.fr – Property purchase: acquisition costs (known as French Notary’s fees)
5 Notarys.fr – VAT on property
6 Republique Francaise – Property taxes
7 Republique Francaise – How is my property tax calculated? Why did it increase in 2024?
8 Republique Francaise – What are the penalties for late payment of tax?
9 Republique Francaise – Residential tax on second homes
10 Republique Francaise – Housing tax
11 Republique Francaise – Taxable assets
12 GOV.UK – UK/France Double Taxation Convention
13 Republique Francaise – How does the single flat-rate deduction (PFU) work?
Sources last checked on date:13/03/2025
The information provided in this material is accurate to the best of our knowledge at the time of writing 13/03/2025, but it is subject to change. The content is for informational purposes only and does not constitute tax advice. It is essential that individuals seek advice from professional services regarding tax matters. We do not accept liability for any errors or outdated information, and individuals should not rely on the information presented without consulting an expert.
