All property deals in France are handled by a Notaire (Notary) as he/she is the only person permitted by law to perform conveyancing transaction in France. The Notaire has to oversee the legal aspects of the sale as well as the technical condition of the purchased object. The Notaire acts on behalf of the State and is appointed by the Minister of Justice, and the fact that an instrument is drawn up by a Notaire is a guarantee of its legality and authenticity.

The Notaire oversees the transfer of funds that are carried out through his account and ensure that all the taxes and fees are paid in full, including any other additional payments (for example, buyer's first mortgage and insurance payments). Notaire fees, which are mainly taxes and stamp duty on the real estate transaction, are due and charged in the contract conclusion day. The fees depend on the type of the real estate: under five years old new property accounts for 2-3%; over 5 years and older property accounts for 6 -7 %.

As a rule, all legal subtleties of the property selling and purchasing process takes about 2-2,5 months.

The first stage of French property purchasing process is to sign and set out the main terms of the agreement between the buyer and the seller (Compromis de vente). Normally the buyer pays a 5-10% deposit on signing the agreement, which is held by the Notaire into its bank account. This deposit is stored on the bank account of the notary until the final completion or annulation of the sale and purchasing deed.

You should note that all financial operations to purchase property in France are non-cash and amounts exceeding 10 000 of euro are subject to control.

On signing the agreement, the survey reports (all information relating to the technical condition of the purchasing property) must be provided to the Notaire by the seller for annexation to the sale and purchase agreement and, ultimately, the deed of sale according to the French law. The survey reports include,full details of the property, its surface area and boundaries, including dependences (outbuildings), fixtures and fittings the results of legally required reports:

• checks for lead, asbestos, termites in the property
• electricity and gas safety certificates
• energy performance report
• natural risks statement depending on the object location zone. (for example, flooding) and whether there are any conditions suspensives (conditional clauses) or other statutory disclosures

Once you have signed the Compromis de vente, the property object is withdrawn from sale and is reserved for the buyer. During this time, "cooling-off period", the buyer can withdraw the agreement and take back the deposit according to the Droit d'annulation SRU (la Solidarité et le renouvellement urbains). The seller can not withdraw without paying the buyer damages equating to 10% of the property price (if you had sent a deposit, this would also be returned to you). At the end of this period, the buyer is legally bound to purchase the property and can not withdraw without being liable to pay damages equating to 10% of the property price (if you have paid your 10% deposit, your deposit will cover this.) However, the buyer may not be liable to pay these penalties if any of the suspensive clauses outlined in the Compromis de Vente are not met. On signing the Compromis de vente, the Notaire verifies purity of the deal. He checks the each party's rights to buy or sell the property. He requires buyer and seller full names, contact details, professions, birth and marriage certificates, passport copies, details of ex-husbands and wives to ensure that there are no pre-emptive rights on the property. He also conducts a search in the land registry to see whether there are any third parties with a claim on the property.

According to the French law, one of the rights of the Mairie (Town Hall) is the right to stop or pre-empt the sale of a property if the community intends to buy it (in whole or in part) for an intended purpose at the specified price in the Convention de vente.The droit de préemption is a sort of pre-emptive pecking order that allows a public entity to claim a priority over a property that has been placed on the market for sale.

As part of his duty to conduct searches as to legal title, possible rights of way etc, the Notaire will contact the local mairie to check if it intends to exercise its rights of pre-emption. ). If the mairie is interested in buying the property, the buyer will receive the deposit back without any additional compensation. The mairie must reply within two months and if it fails to reply, the sale can proceed on the assumption that it does not wish to exercise its right of pre-emption (as is the case with an estimated 99% of sales).

The Notaire also checks the property location zone to ascertain if there are any risks posed by industry in the area and historical heritage if any.

The buyer needs to plan ahead in order to transfer the balance of the payment to the Notaire's account in plenty of time for the signing date of the full contract, Acte de Vente. The buyer should decide whether to purchase as a legal entity or an individual and solve all the inheritance and ownership issues.

It is necessary to know that to purchase a property for primary residence implies taxes on activities on the territory of France.

Once the deed of sale (Acte de vente) is signed, the transfer of ownership is carried out. The seller must give the keys to the buyer. The Notaire's office will organise the bank transfer to the seller's account and the estate agency fee.

The Notaire registers the deed of sale at the mortgage office of the Conservation des Hypothèques. The authentic copy of the deed of sale, signed by the notary and stamped by the tax authorities, after 3-4 months will be finally returned to the buyer: it will be the deed of property, officially.

It can take quite a long time for you to receive this title deed (Titre de propriété). Usually, it takes between two and three months to receive this document. In order for you to complete the necessary administrative processes, following your purchase, the Notaire will provide several certificates. The certificate can be presented to any of the public utility services to get a connection e.g. electricity, gas as well as to get the insurance on the property. Meanwhile, your Notaire, who plays an important role in the entire acquisition process, continues his work as an ant, the most important of which is When you have signed the deed of sale, you should ask the Notaire for a certificate of purchase (called attestation), which you can use to gain access to public services for the property, and open a bank account etc. if you have not already done so accordingly.

To finance the purchased real estate in France and Monaco, you can get a mortgage of various types, whenever a purchase is registered to an individual or a legal entity such as SCI, a non-profit real estate company or any other companies.

The term of the loan varies from 5 to 30 years, depending on the type of mortgage, the client's creditworthiness and the initial deposit. The deposit usually accounts for 40 - 50% of the value of the acquired property.

The decision to grant a mortgage is based on the borrower's solvency: the debt-to-income ratio should not exceed 1/3 or 33% of his total net income. This threshold is called "le reste à vivre". the balance to cover the costs of everyday life (housing, food, clothing).

A fixed-rate mortgage with a constant interest rate with the repayment period (prêt à taux fixe) varies from 3% to 3,5%. The main advantage of this rate is reliability: the amount of monthly payments and the total cost of the loan are known initially. Regardless of market trends, the rate and term of the loan will not change. The fixed rate can be changed only when refinancing a loan.

A variable-rate mortgage (prêt à taux révisable) with a rate that is linked to an index, varies from 1,3% to 2%. The interest rate is linked to the averaged value of the interest rate of the interbank euro market, the European Central Bank interest rate (Euribor - Euro Interbank Offered Rate), which can change every 3-6 months. At first look floating mortgage rates seem more attractive than the fixed interest rates offered by banks. The disadvantage is that it is very difficult to predict the value of market lending rates for a long period due to fluctuations in the market. One of the limitations is the point in the contract "taux capé", which allows you to vary the floating rate at fixed limits ± 1 or 2%. .

A capped variable-rate mortgage with a rate that varies but cannot exceed a specified limit. The principle of such a loan allows you to use a low fixed rate for the first 7-10 years. In general, the mixed-rate loans are cheaper than the loans with a fixed rate for the same period of time.


MORTGAGE LOAN PROCEDURE

The bank has usually 30 days to accept a loan and return the signed agreement to the lender. The loan is then held available for four months. Once a loan has been agreed, a French bank send you a conditional offer (offre préalable), outlining the terms. In accordance with French law, the offer cannot be accepted until after a 'cooling off' period of 10 days.

To obtain a loan to purchase the property in France, all documents must be submitted in their original and be translated by an official translator.

French lenders check that you can afford the repayments by examining your debt-to-income ratio. They require that once your new mortgage is taken into account your contractual outgoings (for example rent or another mortgage) do not exceed 33% of your net household income (in the case of high incomes - up to 40%).
The charges of the agency and notary fees are not covered by the loan.
Tax optimization when investing in property in France for the renting purpose.

In case of a classic loan, the borrower pays part of the borrowed capital (principal payment) and the interest monthly. The lenders offer the standard capital and interest repayment mortgage in the form of either straight line or increasing capital repayment plus interest, which is paid off each month over the duration of the mortgage. If the borrower is liable to the new property wealth tax (IFI), he should be aware of the depreciation loan table at the moment when the return value of his real estate exceeds the tax IFI bar.

When paying a loan IN FINE, the borrower only reimburses interest since the principal is usually paid back all at once, at the end of the loan term.

To pay the principal, the borrower set up savings associated with an investment product backed by the life insurance by making monthly payments to a saving account or he repays the entire principal in one instalment when the loan expires. Thus, the capital loan remains untouched until the end of the loan period and is paid fully only at the last payment. Therefore, during the loan IN FINE period, the value of the acquired property is considered to have zero value, and IFI wealth tax payment will only occur after the entire loan is paid.

The banks of France and Monaco offer many schemes to optimize the loan. For example, placing money on a saving deposit or investing in financial instruments for the duration of a loan repayment (in average, without special risks at 3-4% per year) can significantly reduce the cost of a loan or even cover it. The larger the deposit, the more profitable it is for the client.

Additional charges include administrative fees of the bank and account for about 0.25% - 0.5% of the borrowed capital. Before making a final decision on a mortgage, banks of France and Monaco can request to undertake an assessment of the purchasing property. The cost of the examination varies from 500 to 5000 euros, depending on the property and appraisal company. You should also add charges of French Notaire amounted to about 1% of the property value when registering it in a mortgage bureau.

Acquisition of real estate through mortgage in France and Monaco can lead to certain tax relieves.
The borrower can significantly reduce the annual income tax (rental income) by deducting the interest. He can also minimize or get an exemption from the wealth tax IFI by subtracting the principal from the taxable base for IFI tax calculation.

There are a number of different tax regimes for rental revenues and basis on which the owner will be charged (including social contributions). In general, there are two main tax regimes: micro-entreprise and regime reel but furnished and unfurnished properties are also taxed differently in France. As unfurnished properties have a long standard letting period of three years and a notice period of three months, it is typical to find that most short-term lets are furnished.

There is also a strong holiday property market in France, which can serve as a suitable short-term accommodation. Long-term holiday lets are also common, where the tenancy is agreed for several months.

French tax authorities also divide income by type of rental housing. This can be income from a long-term and from a seasonal (short-term) rent.
Unfurnished properties are typically rented to a person on a long-term basis. Owners can report their rental income on their personal income tax return using one of the following regimes:

Micro regime («Le régime micro-foncier») is also called Micro-foncier. This is applicable when rental income is less than €15,000 and a notional deduction of 30% is offset against gross rental income. This is beneficial where your actual costs are lower 30% of the income, in general, when you don't have any mortgage on the property. Repair works and other types of expenses can not be deducted under this regime.

Real regime («Le régime réel») applies if your French rental income is greater than €15,000 or if you choose the simplified scheme because your actual expenses exceed 30% of the gross rental. Various expenses are deductible, such as a mortgage interest, agency fees, property tax, communal charges, local taxes, insurance, maintenance and repairs like replacement of boiler elements or pipelines, restoration of the roof, repair of the existing electrical installation, costs of diagnostics, management costs and others.

Furnished Properties that are typically rented on a short-term basis to a person give you two regimes when it comes to your taxes:

Micro regime (Le régime micro-BIC Bénéfices industriels et commerciaux) is also called micro enterprise ("micro-enterprise"), automatically available when the rental income is less than €32,900 per year. Bénéfices Industriels et Commerciaux (BIC) applicable to the income from furnished lettings, which is treated for calculation purposes as commercial income. Owners are permitted to take 50% of the rental income as a deduction at taxable income. It is generally more tax efficient to choose the Micro Regime if your actual costs are lower than 50% of the income.

Real regime («Le régime réel») applies if your French rental income is greater than €32,900 or if you choose the simplified scheme. Owners are permitted to take 50% of the rental income as a deduction at taxable income. It is interesting to choose this regime if the costs of the rent are more than 50% of the income.

Under this regime various expenses are deductible, as a mortgage interest, all types of local taxes due, insurance, management fees, cleaning, maintenance and repairs, advertising, accountancy fees, bank charges, utilities and others.

The tax authorities of France consider furnished property renting as a commercial activity as opposed to renting unfurnished housing.

Rental revenue tax would be due on any rental net income collected in France from renting a house.

The tax rate depends on the gross revenue of a person and the resident or non-resident status of the French property owner:

• for residents: rental income is added to other income and is subject to income tax and calculated on a progressive scale from 14% to 45%.
• for non-residents: rental income is taxed at a rate of 20%.

The income was 12 000 euros per year (there is a fixed reduction, since the amount of income is less than 15 000 euros) - 30% of reduction = (12 000 - 3 600 euros) x 20% = 1 680 euros.
If the amount of annual income is more than 15 000 euros, the real expenses (insurance, repair costs, interest on the loan and other expenses) are deducted from it. After this deduction, a tax rate of 20% is applied.

The income was 20,000 euros per year - 50% discount = 10,000 euros x 20% tax rate = 2,000 euros tax.

If furnished seasonal rent the property is held through a French property company (Société Civile Immobilière (SCI), the tax authorities can automatically assign SCI to companies subject to taxation on the basis of company taxation. In this case, the taxation will be as follows: if the rental profit is up to 38,120 euros SCI is subject to a reduced taxation of 15%. The remaining taxes at a rate of 33.33%. If the members of the partnership choose dividends, then a 40% tax relief applies to them, and the rest 60% is levied as an income accruing from a movable capital for an individual.

The inheritance tax is levied on the heirs in case of the death of the owner of the real estate in France. The order of inheritance is advised to determinate when buying a property with a notary. The owner of the property can not freely appoint an heir, but there are mechanisms that control the inheritance process. According to the French law, the surviving spouse may be the sole heir, or inherit with the relatives of the deceased. The system of inheritance for the siblings and other relatives is based on 3 principles: order, degree of kinship and generation.

It is necessary to take into account that the payment of this tax by the heirs is carried out depending on the buyer's orders regarding the right of inheritance on signing the property acquisition.

There are a number of important exemptions and allowances from French capital gains tax on the property sale. When applying the main tax at 19%, the basic rate of capital gains then the relief against the tax is granted over 22 years of ownership, commencing from the 6th year of ownership, as follows:

• No allowance for the first 5 years of ownership.
• Between 6 and 21 years of ownership: 6% allowance per year.
• For the final 22nd year of ownership: 4% allowance

Since 2018 the rate of social charges (Prélèvements Sociaux) is 17.2%, applied in addition to the main tax itself.

In the same manner as capital gains tax, tapered relief is granted, but over a longer period of 30 years, commencing from the 6th year of ownership, as follows:

• No allowance for the first 5 years of ownership.
• Between 6 and 21 years of ownership: 1.65% per year.
• For the 22nd year of ownership: 1.60% in this single year.
• Between the 23rd year to 30th year of ownership: 9% per year.

In the case when after all exemptions the capital gains exceed the sum of 50,000 euros, an additional tax calculated on a progressive scale from 2 to 6% is imposed. Plots of land for the construction are exempt from this additional tax.

Since the1st of January 2016, capital gains realized by non-residents of France tied to the social security system in another European country have been exempted from paying social charges (Prélèvements Sociaux).

The European regulation, published in the official European Union newspaper on July 27, 2012, entered into force on August 17, 2015 (it took time for each member state of the European Union to put its own legislation in order). The regulation is applied in 25 European Union countries (with the exception of Denmark, Great Britain and Ireland).

Traditionally, there were two systems of international inheritance law.

For some EU states the succession law to be applied depended upon whether the assets were moveable or immovable (Germany, Spain, Italy). In other countries, such as France, Belgium or the United Kingdom, property benefits are subject to the law depending on their location. For those individuals with assets in more than one country, various factors were considered by the courts in determining which succession law should apply. Different jurisdictions applied different connecting factors such as domicile, residence, nationality or habitual residence, in order to determine what laws should apply to an individual's estate The European regulations came out for the principle of hereditary unity.

Before the change took effect on August 17, 2015, individuals had to comply with the laws of whatever country the asset was owned in, which often took precedence over their own wishes regarding the disposition of that property or investment.

After August 17, 2015, the default position is that the succession of those assets on death will be governed by the law of the country in which the deceased individual habitually resided. Alternatively, such an individual may choose, in their will, to apply the law of their nationality to the succession and administration of their estates. The Regulation will apply to deaths that occur on and after 17 August 2015.

The EU Succession Regulation's underlying concept for all of this can be summarised as follows: one succession case, one court, one applicable law that will be applied to all operations (administration, liquidation and separation) associated with inheritance and one European Certificate of Succession. In other words, each succession case should be handled by the courts of just one country in accordance with that country's applicable law.

Someone whose habitual residence is not in the country of his or her nationality, but who nevertheless wishes his or her succession to be governed by the law of his or her nationality, can make a choice of law (Article 22 of Brussels IV).

Choosing the law of one's nationality is also advisable if there are any doubts about the person's country of habitual residence. This choice must be expressly declared in a will or inheritance contract (via a disposition of property upon death) or must be clearly apparent from the terms of such a disposition. Expressly electing the applicable law is advisable for reasons of legal certainty.

The European Certificate of Succession(ECS) has been newly created and is applicable in almost the entire EU. It is primarily used to verify an heir's status and is intended to make the settling of transnational estates simpler and more efficient. The purpose of the ECS is to prove the entitlement to succession. In order to fulfil its purpose, the ECS must provide as clearly and coherently as possible the persons who are entitled to succession and to what extent.

The certificate is valid in all EU Member States (except for the United Kingdom, Ireland and Denmark) and has the same effect in each of these EU Member States. Its use is not mandatory (Article 62 (2) of Brussels IV). The ECS is not a substitute for existing national certificates or procedures, which means that the principle of subsidiarity applies. The ECS will not take the place of internal documents used for similar purposes within the Member States.

The advantage of a European Certificate of Succession is that its effects are the same throughout the EU regardless of the country in which it is issued. You can get a European Certificate of Succession from a court in the EU country with the power to rule on the inheritance, or from another competent authority - for example a notary - in the same country.

The ECS has to state information on the deceased, details concerning beneficiaries relate to information on the heirs or legatees having direct rights in the succession; a marriage contract entered into by the deceased and information concerning the matrimonial property regime. An ECS must further indicate the law applicable to the succession and the elements on the basis of which such law has been determined.

This hereditary simple and clear certificate will facilitate actions related to the regulation of the international heritage succession.

French inheritance law is restrictive and 'forced heirship' applies to children. This means that, irrespective of the specifications of a will, a certain proportion of your estate,called the 'la reserve héréditaire', must be set aside for children, or the spouse if there are no children. That part of your estate that is freely disposable is called the 'quotité disponible'.

Under inheritance law in France, the amount that needs to be set aside as the 'reserve' is as follows.
*Only freely disposable in the absence of children, as they are protected heirs.

The inheritance tax (Impôt sur la succession) is levied on the heirs in case of the death of the owner of the real estate in France. The order of inheritance is advised to determinate when buying a property with a notary.

The owner of the property can not freely appoint an heir, but there are mechanisms that control the inheritance process.

According to the French law, the surviving spouse may be the sole heir, or inherit with the relatives of the deceased. The system of inheritance for the siblings and other relatives is based on 3 principles: order, degree of kinship and generation.

The right to inheritance is in the following order (each of the queues excludes the following):
1. Children, grandchildren
2. Father, mother, brothers, sisters
3. Grandparents
4. Other relatives

Important! In order to avoid conflict situations (between the legal systems of several countries) it is desirable to plan in advance the inheritance by contacting competent specialists.

On signing the sale and purchase agreement, a seller should provide a buyer with all information relating to the technical condition of the property, and attach the survey reports in accordance with the existing French real estate legislation. As of November 1, 2007, when signing the sale and purchase deed to buy the real estate in France, the following survey reports are obligatory:

• for the apartments: its total surface area (Loi Carrez)
• the results of legally required reports:

• checks for lead, asbestos, termites in the property
• electrical wiring and gas installation reports
• energy and gas efficiency report
• natural risks statement depending on the object location zone.

The purpose of surveys is to inform the buyer about conditions of the acquired real estate. Deviations from the standards, revealed by the examination, are not the reasons for the seller to carry out the work on their elimination, except for cases when a high concentration of lead is detected, then a repair work is obligatory. In this case, the seller and the buyer should come to a mutual decision at the cost of whom, the seller or buyer, the property will be repaired. This may be a reason to reduce the sale price, or refuse a purchase.

Technical surveys in France are obligatory undertaken by qualified experts, with a certificate of competence approved by COFRAC (Comité français d'accréditation). The buyer has the right to demand a cancellation of the sale and purchase deed in the court or to reduce the price if the real state of the property does not correspond to the information contained in the survey reports.

Measurement of the total area (Certification de surface Loi Carrez) is carried out in residential property with an area of not less than 8 m². It does not include the area of the garage, basement, pantry, etc. The period of the validity of the report is not regulated. The difference in the stated and actual surface area can not exceed 5%. This report is not obligatory for the sale of an individual house.

A survey on the presence of asbestos (Etat amiante) is undertaken to all buildings built in France before July 1, 1997. Floors, wall coverings, partitions, beams, ceilings, floor tiles, shutters, sewer pipes, elevators, cellars and garbage collection facilities in common areas of the residence, as well as load-bearing structures and roofing in individual houses are subject to control. The period of the validity of the report is not regulated.

A report on the presence or otherwise of paintwork that contains lead is called Constat de risque d'exposition au plomb. This survey requirement applies to all properties built before January 1, 1949. In the absence of lead the period of the validity of the report is not regulated. In other cases, the report is valid for 1 year.

A report on the presence of termites is only required within designated areas of the country. The local city hall (mairie) will be able to advise you whether the property is located in one of these areas. The survey is called the Etat des risques parasitaires. The report is valid for 3 months.

The statement of natural and technological risks (Etat des risques naturels et technologiques): inspection of buildings and land plots is obligatory in the zones where there is a risk prevention plan in place or in preparation, or in those areas classified as at risk of seismic movement (information can be obtained from the city hall). The certificate is valid for 6 months.

The survey of energy efficiency and level of carbon dioxide emissions (Diagnostic de performance énergétique et GES) is carried out in the residential property. The report is valid for 10 years. This is general information that does not affect the sale and purchase process.

A report of the survey on a natural gas installation (état de l'installation intérieur de gaz) in the property applies to those properties where the gas installation has been set for at least fifteen years. The period of validity of the report is 3 years.

The electrical wiring (Etat des installations intérieures électriques) is checked in the residential premises equipped with electricity more than 15 years ago. The report is valid for 3 years.

Starting with 2013, when selling real estate in France, the owners should bring the individual sewerage system (état des installations d'assainissement non collectif) up to standard if it does not comply. The sewage examination is obligatory every 8 years.

When buying a property in France, upon the request of the buyer and before signing the sale and purchase deed, an independent expert can estimate the price of the property. When determining the market value of real estate, the following parameters are taken into account:

• Property setting and planning
• Property location and surroundings
• Position on the real estate market
• Quality and general condition of the property
• Level of comfort

To value the property an independent expert makes a comparative analysis of real estate market, and, based on the database, he/she can give an objective appraisement of its value.

Upon the buyer request and before signing the sale and purchase deed, an independent construction expert can undertake technical surveys of the apartment, villa or land condition and provide a full report to the buyer.

The advantages of buying a new build real estate in France are not subject to doubt as the new property with its technological innovations has a higher level of comfort in comparison with the older property. New property is ecological, has better sound and heat insulation, a modern layout with a good organisation of the space. Almost all new buildings on the Cote d'Azur of France have an underground parking. Many new residences have a swimming pool and a park in the grounds.

Moreover, under certain conditions, before the construction starting date, it is possible to make changes in the construction plan, taking into account your personal wishes and following your individual needs on how your property should be equipped.

The quality of a new property construction in France and their compliance with the technical standards are subject to careful monitoring.

The new housing is safe: a two-year guaranty is designed to eliminate possible problems in the technical equipment functioning of the building, and a ten-year guaranty covers the risks associated with the stability of the foundation and its bearing parts.

Any defects in construction, arising during the year after the property commissioning, are also subject to elimination by the full completion guarantee.

When building new housing in France, the norms of fire safety are strictly observed and controlled. For example, the use of health damaging materials (asbestos, lead, etc.) previously used in construction, is now completely prohibited.

Economically, the undoubted advantage of new housing is the absence of repair costs, and utilities costs are low. Depending on the new building location, it is possible to be exempt up to 2 years from the property and residence tax.

On signing the notarial deed, the Compromis de vente, of a new real estate purchase, only notary fees are paid. No other fees are charged for registration of the new housing. The cost of notary services is 2-3% of the new property total value (compared to 6-7% when buying in the existing housing market).

If you make investments in real estate in France with the purpose of leasing, it is possible to choose the most favourable tax regime (based on the laws of Robien, Borloo, Scellier).

When you buy apartments in already completed residences there is no possibility of choosing or adapting the construction plan for your personal needs as most of the apartments are bought out at the stage of design and construction. If you would like to buy an apartment in accordance with your personal requirements, it is better to get acquainted with the new housing construction programs at their initial design stage, and to purchase the new home through the system of VEFA (Vente en l'Etat Future d'Achèvement). It means buying the property in the process of construction.

Payment for the real estate under construction in France is made in accordance with the stages of construction:

• not less than 5% of the total value of housing at the time of its reservation,
• at least 35% of the value at the time of the foundation building
• at least 70% of the value at the time of roofing
• not less than 95% of the value at the time of construction completion
• 100% of the value at the time of the property delivery to the customer.

The VEFA reservation contract includes the following information:

• approximate living area of a new housing
• number of living rooms and premises
• location of your home in a building or residence
• price and conditions for its revision
• technical facilities description (materials used in the construction, equipment, etc.)
• date of signing the sale and purchase contract, Acte de Vente.

information about guarantees (one-year guarantee of construction qualitative completion, with the obligation to eliminate all construction defects, a 2-year guaranty for electrical equipment, a 10-year guarantees for the strength of the building)


It is also possible to include in the sale and purchase contract the deadline for your new home delivery, the calendar of payments, the fixed final cost, and the need for a loan.

When signing the sale and purchase of real estate deed in France, the buyer is given a full package of ownership documents: a certificate of ownership, an act of technical compliance with the full and final description of the housing, residence, space, equipment, etc.

If you decide to buy a property as your summer residence, then the traditional holiday house market in France has masses of options: from modest apartments to luxury estates. The main advantage of buying a second home is that the buyer can take possession of the property immediately after signing the sale and purchase deed.

The process of taking possession of a new build house in France is longer. But it has many advantages: a high level of comfort, quality and safety, and the notary fees is 2.5 times lower. Buying a new property by VEFA (Vente en l'état future achèvement) can be an ideal option for those who want to buy a comfortable new build house which complies all modern technical and environmental standards and where quality and safety are guaranteed by the builder. Payment for the real estate under construction in France is made in accordance with the stages of construction. The purchase of a new home is notarized (you sign a sales and purchase deed) after the basement construction.

For many property buyers who dream of their own home in France, the best option is to purchase a plot of building land. In this case, it is possible to purchase a plot of land for individual construction or purchase of a plot of land from the developer already with planning permission. It is necessary to take into account that the area of building site is determined by its coefficient, the rate of which depends on the geographical location and which is regulated by the municipality. On the French Riviera not all the land is subject to construction, it is possible to specify the possibility of construction and understand the evolution of the territories surrounding the site according to the local urban plan. When buying a land plot, it is important to pay attention to the presence or absence of public utility services, notably electricity, gas, water supply and telephone which can significantly increase the cost of construction. The purchasing process of a property plot of land is the same for any other type of property. You sign the sale and purchase agreement and deed with notary.


The house construction begins with the application to the mayor's office for a building permission. It is important to comply with all formalities and deadlines. As a rule, a permission is issued within 2 months from the date of the registration application. An obligatory stage is sending an application of the beginning of construction to the mayor's office and publishing an appropriate announcement in the City Hall and on the plot of land itself. After 2 months you can begin the construction. What will the new house be like depends on the taste of the buyer and his financial capabilities. Building an individual house according to the developer's plan will save the customer from possible "headaches" and save money. The architect participation in the design and construction will increase the final value of your property, but it can serve to make your dream come true. It is mandatory to apply for an architect if the building area exceeds 170 m².

For buyers who want to invest in French real estate profitably, and do not intend to live immediately in the purchased property, it may be interesting to purchase real estate en viager. The buyer pays only a part of the value of the property when signing the sale and purchase agreement, and the difference he pays as a monthly annuity for life granted to the owner, which is taxable like any income. As the progressive growth of tax benefits depends on the age, real estate sellers en viager are old people over 70 years old. The cost of a capital sum (bouquet) made at the start of the agreement and an annuity (rente viagière) are calculated by a notary, taking into account the age of the seller, the expected life expectancy and the property market value.

Another possibility of profitable investment in France is the purchase of real estate in leaseback. The main benefit of this system is the VAT refund of 19.6%. Moreover, the owner can occupy the property for a set period each year. The rest of the time, the property is rent out through a management company over a minimum period of nine years and the owner receives a guaranteed rental income. When taking a mortgage to buy a leaseback real estate, the buyer is exempt from paying tax on rental income. Thanks to special mortgage programs, it is possible to lend up to 70% of the value of real estate. The leaseback property are specialized residences (tourist, student, pension, business residences). The state is interested in making profit from fully occupied during the year residences, and stimulates their construction.

You should take into account that, according to French law, the acquisition of real estate by an individual can not restrict the rights and freedoms of citizens, and it imposes certain obligations on the new owner.

When buying a property on the coastline (which is in great demand on the Cote d'Azur), it is necessary to observe the following rules:

• Access to the coastal zone should remain public: the owner does not have the right to limit the coastal area for a private beach. Local authorities have the right to build a passage to the water on private property.
• The distance from the buildings to the lower tide line is not less than 100 m.
• The type of buildings and fences, the building materials use in the construction must comply with the standards of the local urban plan.

Many buyers are attracted by the possibility of buying a medieval castle in France. But you should know that such property of historical value are cultural heritage of the country. As the owner of a medieval castle, you can deal with the problem of invasion into its territory by tourists. On the one hand, the rights of the owner must be taken into account, on the other hand, there is a public freedom to visit historical monuments. There are no standard solutions for these situations, and they should be considered individually.

The dream for many property investors in France is to build their own house. Firstly, to make it come true, it is necessary to purchase building land.

There are two options for buying land: the purchase of an isolated plot of land or the purchase of a plot of building land (lot) on a plot of land for building dwellings (lotissement). Buying a site of land on a plot of building land allows avoiding lots of problems, since the area of the plots has already been determined and the possibility of providing utilities and house construction are guaranteed.

At the same time, the buyer should comply with all architectural standards, adhere to the charter of the housing cooperative, and maintain the garden and the outbuildings. The owner should also follow these rules in case he separates and sells parts of land on which his property is located.

The acquisition of an isolated land plot gives the buyer more freedom of action, but it assumes more administrative formalities and financial investments.

On the French Riviera not all the land is subject to construction, it is possible to specify the possibility of construction and understand the evolution of the territories surrounding the site according to the local urban plan, PLU (Plan Local de l'Urbanisme).

The building area in France can not be arbitrary, each plot has its own COS (Coefficient d'Occupation des Sols), which defines the residential area in the total surface area (SHON (m²), Surface Hors-Oeuvre Nette). So, for example, when COS equals to 0.5 and the area of a plot is 1000 m²; it has an allowance to build a living space (SHON) of 500 m².

Before buying a plot of land it is necessary to understand the nature of the soil if it is suitable for future construction and carry out soil tests. The plot must be stable and should not be flooded, nor contain careers or tunnels.

In doubtful cases of boundary determination of the site, the expert, surveyor may carry out repeated demarcation. The exact boundaries of the site are indicated by the mayor's office in the certificate of urbanism issued on the request of the buyer.

The purchasing process of a property plot of land is the same for any other type of property. The first stage is to sign the sale and purchase agreement (Compromis de vente). This preliminary agreement should necessarily indicate the built-up area of the plot as well as the terms without which the sale can not be carried out: the buyer should obtain a planning consent, a certificate of urbanism and if necessary, a consent to grant a loan. It is better not to sign a construction contract before taking ownership of the land. When signing a preliminary sales and purchase agreement, a deposit that can reach 10% of the selling price is transferred to the seller.

The final notarial sales and purchase deed should contain the following information: the totality of expenses and taxes, the exact description of the plot, possible servitudes, etc. Notarial expenses are identical to expenses for a classic purchase and sale transaction; registration fees, which constitute 5.09% of the land value, as well as urban taxes are usually added to the notary expenses.

To request a detailed certificate of urbanism (certificat pré opérationnel or certificat détaillé), it is necessary to indicate the purpose of the construction and its surface area. This certificate confirms the possibility of implementing a construction project in the selected plot of building land.

A simplified or ordinary certificate (certificat ordinaire or simplifié) contains information of possible administrative restrictions in the ownership rights, local urban plans directly related to the specified plot of land, existing taxes and fees. It specifies rights and responsibilities associated with ownership of a plot of land.

For example, buying a property or a plot of land on the shoreline is subject to certain restrictions:

• The distance from the buildings to the lower tide line should be at least 100 m.
• The height of buildings and fences, the building materials used in the construction must comply with the standards of the local urban plan.
• It is necessary to provide a freely accessible public space along the coastline at the water's edge: the coastal zone remains accessible for public, and the owner of the plot can not arrange a private beach on it.

The certificate of urbanism is issued free of charge and it is not a construction permission.