Buying a house in France as a foreigner (2024)

FAQs

Can I buy a house in France as a non resident? ›

Fees and taxes

There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID. Besides your deposit, you can also expect to pay notaire's fees.

MORTGAGES. Americans can get a French mortgage under some circ*mstances, but it is extremely difficult. The 'Foreign Account Tax Compliance Act' (FATCA) is part of the US tax code and was introduced in 2014 to help counter tax evasion. French banks find the cost of complying with this to be prohibitive.

Is It Possible to Buy Property and Get Residency in France? France doesn't enable foreigners to get residency for becoming an owner of a property, regardless of its price. Nevertheless, you can get a residency using other methods — for instance, tying the knot with a French citizen.

Once you have bought your dream home in France If you would like to relocate to France or visit for longer than 90 days you will require a visa, which is easy to obtain once you are the owner of a French property. You may wish to apply for a Long stay visa valid for residence (VLS-TS).

French Property taxes - purchasing. In France there are two main property taxes payable for new build purchases. In total these taxes amount to just over 20 per cent of the value of the property (see Buying a new build in France).

Common FAQ's About Retiring in France

Yes an American can retire in France. For visits longer than 90 days you will need to apply for a visa de séjour temporaire (a residence visa). You cannot apply while on vacation in France, you ust apply for this residency visa from your nearest French consulate in the U.S.

To stay long-term, you'll have to apply for a one-year French visa, which has the option for annual renewals. Depending on your circ*mstances, it can take anywhere from three to ten years to obtain permanent residency. At that point, you assume nearly all of the responsibilities of a French citizen.

Americans who intend to stay in France for less than 90 days don't need visas. But, from November 2023, US citizens must apply for an ETIAS travel authorization to enter France. The application for ETIAS will be online and will cost €7 per person. Anyone under 18 and over 70 will be exempt from paying the fee.

Qualified employees must have evidence of the following: Gross annual pay of at least twice the statutory national minimum wage (SMIC), i.e. €41,933 as of May 1, 2023.

How much deposit do I need to buy a house in France? ›

Deposit. For a French mortgage, you will generally need a minimum deposit of at least 15% to 25% of the property's purchase price, with rates that are fixed or variable. “The max for a repayment loan is 85%, but there is only one lender who will go this high,” John comments. “Generally 80% is the highest available.

A French passport can not be obtained by investment, but the country has a residence permit program. Investors over 18 with an official source of income and no criminal record can participate in the residence permit program.

Firstly, the property market has been growing steadily for the last 5 years and has shown remarkable resilience, even despite 2 Covid-19 confinements. Secondly, the French economy is forecast to rebound strongly in 2023 with GDP growing by +4.2% , following a healthy +6.8% recovery during 2022.

France is about 1.5 times bigger than Germany but with a population 20% smaller. In effect, it has a larger rural area with less people to populate it. And as more and more people relocate to cities, more houses are being added to the market—often at bargain prices.

Despite all of this, we strongly advise using your own independent lawyer to assist you when buying or selling a French property.

Getting a home in France is, naturally, a little more difficult as a non-resident — so be aware that a lot of paperwork and due diligence will need to be done. If you're working with a real estate agent the process is likely to be relatively straightforward.

The holiday season is one of the best times to purchase property in France, with December through February marking one of the strongest periods during the year to negotiate prices.

The French taxe foncière is an annual property ownership tax which is payable in October every year. It is payable by the individual who owns the property on the 1st January of the same year and is applicable whether you live in your property or rent it out.

In France, it's the buyer that pays all the fees when purchasing a property and these can be quite considerable (as much as 20% of the property price in some cases). So make sure you account for all of these in advance and deduct them from your initial budget when property searching.

How much are closing costs in France? ›

Closing costs are paid by the buyer. The buyer should expect to pay fees and taxes of approximately 7,7% of the purchase price. These break down roughly as follows: Land Registry taxes, or stamp duty, of 5.81% in Paris, plus the land registry tax of 0.10%.

In laymen's terms, the U.S. and France agreed that social security income will be taxed based on its source, not where the resident lives: If you're a U.S. citizen with a U.S. retirement account (no matter where you live) that money is only taxable in the U.S.

Does the US Have a Tax Treaty with France? Yes, the US has a formal tax treaty with France. This treaty helps US expats living in France avoid double taxation. Under the treaty, US expats living in France may be able to benefit from reduced tax rates or exemptions for certain types of income.

According to multiple indexes, including the cost of living with and without rent and the average yearly income, the cost of living is estimated to be 6% cheaper in the USA than it is in France.

U.S. law does not mention dual nationality or require a person to choose one nationality or another. A U.S. citizen may naturalize in a foreign state without any risk to his or her U.S. citizenship.

For any stay in France exceeding 90 days, you are required to apply in advance for a long-stay vis. In this instance your nationality does not exempt you from requirements. Whatever the duration of your planned stay, the duration of your long-stay visa must be between three months and one year.

Some perks to living in France as an American include access to stellar healthcare, proximity to other European countries, and stunning landscapes. The climate, (especially in the south), and walkability in many cities and towns are a couple more reasons why Americans have decided to make France their home.

To apply for this permanent residency (or as everyone calls it, the Carte de Sejour), you are required to make an appointment at your local town hall or Préfecture (local government headquarters) and present the following information: your passport and visa/existing residency permit (original documents and a photocopy)

You'll need to secure a visa, inventory your belongings and find a place to live before you arrive. If you can't work remotely or don't already have a job, you'll need to find employment as well. That's just the beginning.

How much money do you need for a long stay visa in France? ›

The minimum monthly earnings requirements has therefore increased from nothing to €1,329 net income per month for a single person and around €2,658 net income per month for a couple. For a British family moving to France with 3 children, they will now have to show a gross annual income of around €60,000.

According to the Observatoire des Inégalités, an income of 3,673 euros per month qualifies a single adult as wealthy. By this standard, the privileged bracket represents 7.1% of the French population.

If you spend more than 6 months a year in France, you are then considered as a French resident and must apply for a Long Stay visitor visa (visa de long séjour valant titre de séjour VLS-TS « visiteur »).

Actually a French bank account is not required if you're buying a french holiday home, but it can make your life easier, not only during the purchase process but later on. Regular payments such as electricity bills and local taxes will be easier and cheaper if you have a French account.

Real Estate market in France 2021-22. House prices in France are forecast to grow by 3.5% during 2022. The latest statistics show that property prices in France rose by an average of +5.9% during 2021 (+5.0% for apartments and +6.8% for houses).

Cost of living in Spain is 22% cheaper than in France.

Can Americans move to France? Absolutely! To wit, there are about 200,000 US citizens living in France today. About 17,000 US students move to France to spend a semester or year abroad.

A Golden Visa or a residence permit allows you to legally reside in a specific country. This means that you cannot secure a residence permit in France and then decide to relocate to Spain.

If you live outside France, the consulate of your usual place of residence issues a long-stay visa with the reason that allows you to benefit from the 10-year certificate of residence once you are in France. This visa is valid for 3 months and authorises you to engage in paid employment as soon as you arrive in France.

There are no restrictions for foreign investors buying a house in France, even non-residents. All investors need is a French bank account and a valid ID. Besides your deposit, you can also expect to pay notaire's fees.

What is the average house price in France? ›

The average price per m2 in Paris in Q1 2021 stood at €10,640. This was some 60% more expensive than property prices in Lyon (€5,000), Bordeaux (€4,440), Nice (€3,910) and Nantes (€3,720).

Continued growth for French property Market 2023

House sales will probably remain around 1 million during 2023 and although property prices may slow down, they will remain at around +5% during the year. France remains a good bet for property investors, especially in the rural areas away from the major cities.

Individual Ownership : U.S. citizens/residents may purchase French real property in their individual names. If they do so, the French real property, as immovable property and under international private law rules, will be governed by French inheritance and tax laws.

Actually a French bank account is not required if you're buying a french holiday home, but it can make your life easier, not only during the purchase process but later on. Regular payments such as electricity bills and local taxes will be easier and cheaper if you have a French account.

Non-residents are taxed at a flat rate of 20% or 30% on investment/ rental income. If you earn up to €27.478, the rate is 20% (2022). Everything beyond this level is taxed at 30%.