In the first quarter of 2025, the first signs of recovery after more than two years of fever when sales were falling, as well as construction activity. Apartment prices have decreased during the crisis, and now is the time to buy before href="//www.homesoverseas.ru/news/Vyshla_statistika_notariusov_po_rynku_nedvizhimosti_Francii_za_3-j_kvartal_2025_goda " target="_blank" title="//www.homesoverseas.ru/news/Vyshla_statistika_notariusov_po_rynku_nedvizhimosti_Francii_za_3-j_kvartal_2025_goda"> a new round of growth.
So, if you've been planning to move to Paris for a long time, Nice or Cannes, or moving is not in your plans, but you dream of owning your own house on the Riviera, the market situation is favorable. And what about the tax conditions?
Tax on the purchase of real estate in France
- In the secondary market, the buyer must pay 6-8% of the value of the object.
- When buying an apartment in a new building - 2-2.5%.
As you can see, the difference in taxes on the primary and secondary markets is significant. The low rate, and the institution of guarantees make French new buildings extremely attractive. The buyer of a home in a building under construction receives a 10-year guarantee for all the supporting structures of the building from the insurance company (at the expense of the developer). The advantage is also that the latest technological standards are applied in the new houses, which means that such housing is convenient and economical to operate.
Tax rates practically do not differ depending on the region, although revenue from fees goes to local budgets.
Taxes on property ownership in France
A French homeowner must pay an annual property tax.
The buyer of real estate in a new building is exempt from this tax for 2 years.
If the apartment or house is not the main residence of its owner, then there is also a residence tax. If the property is rented out, the tenant pays the living tax.If the tenant's home is the main one, then he doesn't pay either.
The tax on large property is levied if the value of the asset exceeds 1.3 million euros. The net asset size is taken into account, that is, if the house costs, say, 1.5 million euros, but it has a loan burden of 500 thousand, then the total amount is below the threshold, and you will not have to pay tax. It is also possible to apply deductions when jointly owning or registering an asset for a company.
According to real estate experts, it is high time to index the tax on large property due to inflation, because 1.3 million euros was a huge sum 25 years ago, and now it is the cost of a three-bedroom apartment in Paris.
Tax on rental of real estate
The landlord pays the usual income tax. For residents, it is calculated on a progressive scale, for non-residents (including French people living abroad) it is fixed (which is sometimes more profitable) – 20%. It is calculated from the income you receive after deducting all expenses and other taxes.
For example, an owner can open a microenterprise and receive a tax deduction of 50% if he rents a furnished apartment, and 30% if it is empty.
Let's say the annual rental income from the landlord is 20,000 euros. He rents a furnished apartment, that is, the tax base will leave 50%, or 10,000 euros.
Tax on the sale of real estate in France
The home seller pays capital gains tax (La plus-value), which decreases linearly from the 6th to the 22nd year of ownership. It is calculated based on the difference between the purchase price and the sale price, minus all expenses for repairs, agency services, and more.
Repair costs are accounted for according to invoices. If there are no invoices, then starting from the 6th year, it is allowed to deduct 15% of the purchase price.
For work related to the repair of plumbing and load-bearing walls, the state obliges the contractor to give a 10-year warranty, so it is important to keep bills and require an insurance policy from the contractor.
Due to the decreasing scale of capital gains tax, the French housing market is not profitable for speculation and guarantees an honest value for money.Changes in French tax legislation
From January 1, 2025, the Pinel law was repealed, which reduced income tax on the purchase of housing in a new building for rent.There have been other changes in the tax code.For small investors in hotel real estate, they have become a heavy blow, because when selling, depreciation is now reintegrated into value, increasing capital gains.
There are also positive points. The authorities provided an additional tax-free quota for a year and a half for gifts to relatives for the purchase of new housing.
An important change that does not directly relate to taxes is that from the beginning of 2025 it is prohibited to rent housing with the letter G energy efficiency.
Can citizens of Russia and Belarus make real estate transactions in France?
There are no official restrictions on transactions with foreigners in France, but the difficulty lies in transferring money from Russia.
Some clients open accounts in other countries, for example, in Switzerland, the United Arab Emirates (you need a resident visa to open an account), Kyrgyzstan, Kazakhstan, Armenia, Georgia, Israel, and transfer funds from there.
Sometimes it's easier to get a French residence permit first and then buy a house, and sometimes vice versa.
Today, French banks can even provide a loan for the purchase of housing for Russians if certain requirements are met.
In addition, foreigners legally living in the country are entitled to receive a preferential interest-free loan for their first home and discounted prices for new housing.
The demand for apartments in France among Russians and the Russian-speaking audience remains stable, especially for real estate on the Cote d'Azur, in Paris and its suburbs.
Thank you for your help in preparing the material:
Irina Dupor, director of the agencyImmoconcept
Olga Timonye, Director of the agencyPremiumazur
