FAQ
1. How process of purchase of the real estate in France is made?
In France real estate purchase are made out by the notary who represents interests of the state and bears a civil liability for the transaction. In the registration beginning the preliminary contract between you and the seller (compromise de vente) which is made by the notary subscribes. The contract defines terms of sale, specifies a final price, the information on a condition of object of the real estate, and also a duty of two parties. The given contract assigns to you the real estate, guarantees the price and obliges the seller to remove the real estate from the market of sales. To signing of the given contract the buyer pays a guarantee payment at a rate of 10 % from real estate cost into the account of the notary where it is blocked on the special bank account. After signing of the preliminary contract the notary checks cleanliness of object of the real estate, in particular: the real area of the real estate; absence of asbestos, lead, termites and other; Whether there correspond to the legislation all civil work spent earlier, whether the real estate is burdened with the mortgage; and so forth the Given stage occupies about 2 months from the moment of signing of the preliminary contract. After all necessary checks the definitive contract on which all documents on cleanliness of sold object are applied subscribes. Before signing the buyer should transfer the remained sum into account the notary. In day of signing of the contract the buyer receives the certificate on the property, assured by the notary, and also keys and becomes its full owner.
2. It is necessary to count on what additional expenses at purchase?
Notaries gathering: usually makes about 6,8 % from the sum of the real estate and it is paid in day of signing of the definitive contract. The given sum is intended on State Tax payment on the transaction and payments of notary’s services. The agency fee: in France it usually makes 5 % and is already included at total cost of proposed properties.
3. Whether it is necessary to have documents on «an origin of money» at purchase of the French real estate?
Such necessity is not present, however the notary according to the “against money laundering” law should prove the identity of the buyer and its address of a constant residence. A money transfer is possible only from the personal account of the buyer opened in any European or Russian bank from which the notary will ask a letter of recommendation. The notary also has the right to ask questions on an origin of money for property purchase. Also, if at any stage of registration of the transaction the notary has suspicions concerning an origin of money, under the law he is obliged to inform competent instances, differently can not only lose the professional status, but also to be involved in the criminal liability.
4. Whether it is necessary to have the account in the French bank for payment of the bought real estate?
Such necessity is not present. A money transfer is possible only from the personal account of the buyer opened in any large European or Russian bank.
5. Whether it is possible, what the third party will pay my purchase?
It is not possible. Remittances should be made only from the personal account of the buyer or from the settlement account of the company making purchase, instead of from the third party account.
6. What taxes and payments after real estate purchase are?
The land tax or the tax to the real estate (taxe fonciere) is calculated on the basis of a total area of the house or apartment, the size of a ground (if exists), sites of the real estate and makes about 0,1-2 % a year from its cost.
The municipal tax (taxe d ` habitation) concerns the direct user with the real estate - the owner or its tenant. Usually the sum of the municipal tax is equal to the sum of the land tax.
Wealth tax (Impôt sur la fortune). In France the citizens having the property/wealth for the sum over 720 000 Euros should pay a special tax on it. This tax is paid annually and makes from 0,55 % to 1,88 % from a real estate cost.
The inheritance tax (droit de succession) Transfer to the real estate inheritance is taxed at a rate of 30 % from market cost of the real estate at the moment. In case the real estate has bank debts, the tax will be calculated from the paid sum of the credit.
The profit tax (impot sur la plus value) At the further resale of the real estate the seller should pay 33 % from net profit which he has received from the transaction. The given tax extends also on all foreigners, not being tax residents of France at a rate of 16 %. In case of seizing more than 5 years occur reduction of the tax to 10 %, and so all next 5 years. Thus, at possession more than 15 years the profit tax is cancelled.
7. What is wealth tax?
In France the citizens having the property/wealth for the sum over 720 000 Euros should pay a special tax on it. This tax is paid annually in the following proportion:
Between 720 000 and 1 160 000 Euros 0.55 % from the sum
Between 1 160 000 and 2 300 000 Euros 0.75 % from the sum
Between 2 300 000 and 3 600 000 Euros 1 % from sum
Between 3 600 000 and 6 900 000 Euros 1.30 % from sum
Between 6 900 000 and 15 000 000 Euros 1.65 % from the sum
From 15 000 000 Euros 1.80 % from the sum
In case of real estate purchase on credit, it is not taxed, while on it the bank debts are registered. The tax starts to operate only since the moment when the paid sum will reach 720 000 euros. Every year the tax sum is recalculated according to the paid sum.
8. Is the real estate ownership in France gives the privileges at visa and residence permit reception?
Is the real estate ownership in France officially does not give a privilege for visa or residence permit reception. But experience shows that visa reception on stay of 6 months in year for the buyer and its near relations is almost guaranteed.
9. What now guiding prices for the real estate in Paris?
Each Parisian apartment is unique, and its price depends not only on a condition of the apartment, but also from area, beauty and a historical value of the house, street on which it is, a view, a floor etc. Therefore it is difficult enough to answer unequivocally a question on the price. Nevertheless, we can result some data for the market prices, published by the French magazine “Figaro” from March, 16th 2009:
Quarter Place Vendome, Palais Royal, Chatelet, Les Halles (Paris 1er)
Prices from 7 300 to 12 000 € / m2
Quarter Le Marais, Ile de la Cite, Ile St Louis (Paris 4me)
Prices from 7 600 to 14 000 € / m2
Quarter Boulevard St Michel, Panthéon, Jardin de Luxembourg, (Paris 5me)
Prices from 8 600 to 11 500 € / m2
Quarter Saint Germain des Prés (Paris 6me)
Prices from 8 000 to 12 000 € / m2
Quarter Tour Eiffel, Invalides (Paris 7me)
Prices from 8 000 to 16 000 € / m2
Quarter Champs Elysées, «Золотой треугольник», Madeleine (Paris 8me)
Prices from 9 000 to 16 000 € / m2
Quarter Trocadero, avenue Foch, La Muette, Place Victor Hugo (Paris 16me)
Prices from 7 000 to 13 000 € / m2
Quarter Parc Monceau, Place des Ternes (Paris 17me)
Prices from 6 000 to 9 000 € / m2
Quarter Montmartre (Paris 18me)
Prices from 5 000 to 8 000 € / m2
