France Real Estate: A Guide to Renting or Buying Property

France Real Estate: France is a desirable location for expatriates, retirees, and investors due to its strong economy, rich culture, and high standard of living. Whether you’re looking to rent or buy, understanding the legal requirements and market conditions is crucial. This guide provides an overview of renting and purchasing property in France as a foreigner.

Renting Property in France

Finding a Rental Property

1. Online Platforms – Websites like SeLoger, PAP, and Leboncoin offer listings.
2. Real Estate Agents – Agents (agents immobiliers) can assist in finding suitable properties.
3. Networking – Expats often find housing through social groups or referrals.

Rental Agreements

1. Lease Duration – Standard leases last 1-3 years, renewable.
2. Security Deposit – Typically one to two months’ rent.
3. Utilities (Charges Locatives) – Water, electricity, and maintenance fees may be separate.
4. Required Documents – Landlords may request:
   • Passport or residence permit
   • Proof of income (payslips or tax returns)
   • Rental insurance (assurance habitation)
   • Bank details for direct debit payments

France Real Estate: Average Rental Costs

Prices vary by location:

• Paris: €25-€40 per sqm
• Lyon: €15-€25 per sqm
• Nice: €18-€30 per sqm
• Toulouse: €12-€20 per sqm

Buying Property in France

Can Foreigners Buy Property?

Yes, foreigners can freely purchase property in France with no restrictions.

Steps to Buying Property

1. Determine Your Budget and Financing
   • French banks offer mortgages, but non-residents may need a larger down payment (20%-50%).
   • Mortgage rates typically range from 2%-4%.
2. Find a Property
   • Use online listings, real estate agents, or property developers.
3. Make an Offer (Offre d’Achat)
   • A formal written offer is required to initiate negotiations.
4. Sign the Preliminary Contract (Compromis de Vente)
   • Includes sale terms and conditions.
5. Due Diligence and Financing
   • Conduct property inspections and finalize mortgage approval.
6. Sign the Final Contract (Acte de Vente)
   • Done in front of a notary.
7. Register the Property
   • Registration with the French land registry completes the purchase.

Additional Costs

• Notary Fees: 7%-8% for existing properties, 2%-3% for new builds
• Property Transfer Tax: 5%-6%
• Agency Fees: 3%-7% (paid by buyer or seller)
• Annual Property Tax (Taxe Foncière): Varies by region

Residency and Property Ownership

• Owning property does NOT grant residency.
• Investors may explore France’s Talent Passport or business visas for residency.

Frequently Asked Questions (FAQ)

1. Can I get a mortgage as a foreigner?

Yes, but most banks require at least a 20%-50% down payment.

2. Is it better to rent or buy in France?

It depends on your long-term plans. Renting is more flexible, while buying can be a good investment.

3. What are the hidden costs of buying property?

Expect notary fees, taxes, and agency fees totaling 7%-12% of the purchase price.

4. Can I rent out my property?

Yes, but rental income is subject to French tax laws.

5. What is the current average interest rate for mortgages?

Mortgage rates range between 2%-4%, depending on the bank and borrower profile.

Conclusion

France offers a structured real estate market with opportunities for both renting and buying. Understanding the local legal framework, costs, and procedures ensures a smooth transaction. Working with professionals such as real estate agents, notaries, and mortgage brokers is advisable for a successful investment or move.

Meet An Expert

Meet with an expert today during our open office hours video calls. You will be able to ask any question you might have regarding visas, renting and buying property or just practical advice on moving, while in a group setting. It is 100% free and you can attend on your own schedule.