I’m Buying a Property in France: What Taxes Should I Expect in 2025?

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When investing in real estate in France, especially as a non-resident, understanding property taxation is essential to avoid surprises and ensure legal compliance. France’s tax landscape is known for its complexity, and property owners must navigate various national and local taxes, depending on the nature and use of their investment.

To help you better plan your real estate purchase in France, here’s a comprehensive overview of the key taxes you should be aware of — whether you’re buying an apartment in Paris, a villa on the Côte d’Azur, or a rental property in the countryside.

Acquisition Costs When Buying Property in France

Also known as notary fees, acquisition costs vary based on whether the property is new or old.

  • For older properties, total acquisition costs range between 7% and 8% of the purchase price. This includes approximately 5.80% in registration taxes (also known as land registration or transfer taxes).

  • For new builds or VEFA properties (vente en l’état futur d’achèvement), costs are significantly lower — usually around 2–3%, but with 20% VAT added on top of the purchase price. In these cases, registration feesare minimal, about 0.7%.

These expenses are paid directly to the notary handling the transaction. Despite being labeled as “notary’s fees,” the notary’s actual remuneration (emoluments) typically accounts for only about 1% of the total. The rest covers taxes and administrative disbursements.

Tax on Rental Income from French Property: Property Taxation

Whether you live in France or not, rental income from a French property must be declared in France — there is no minimum threshold. French tax law distinguishes between:

  • Unfurnished rentals, considered as revenus fonciers (real estate income)

  • Furnished rentals, considered as BIC (Bénéfices Industriels et Commerciaux — business profits)

As a non-resident, your rental income is taxed at a minimum rate of 20%, plus social taxes (prélèvements sociaux), which normally amount to 17.2%. However, if you are affiliated with the social security system of another EU country, Switzerland, or the UK, the social tax is reduced to 7.5%.

👉 Learn more about your obligations as a non-resident on the official French public service website.

Local Taxes: Taxe d’Habitation and Taxe Foncière

As a property owner in France, you will also be liable for two local property taxes:

The Housing Tax (Taxe d’Habitation)

This tax now applies only to second homes, not primary residences. It is payable by the owner or tenant occupying the property as of January 1st each year. The amount is calculated based on the cadastral rental value, multiplied by the tax rate set by the local municipality.

The Property Tax (Taxe Foncière)

This annual tax is due from all property owners, whether or not they live in the property. The taxable base is also the cadastral rental value.

Typically, if a property is sold partway through the year, the seller remains responsible for that year’s property tax — unless otherwise agreed. It is common practice to prorate this tax in the sales agreement between buyer and seller.

The Real Estate Wealth Tax (IFI)

If you’re not a French tax resident, the Impôt sur la Fortune Immobilière (IFI) applies only to real estate located in France, subject to the terms of any relevant tax treaties.

This annual wealth tax is assessed based on your real estate assets on January 1st of the tax year. You may be subject to IFI if the net value of your French property exceeds €1.3 million.

Assets included in the IFI base:

  • Main and secondary residences in France

  • Rental properties and undeveloped land

  • Shares in non-trading property companies (SCI)

  • Real estate investment units (SCPI)

  • Shares in companies (if you own at least 10%) valued according to their real estate holdings

Deductible liabilities include loans or debts linked to these assets, provided they exist on January 1 and are borne by the taxpayer.

IFI tax rates are progressive, starting at 0.5% and rising to 1.5%, depending on the net value of your holdings.

📌 Important: IFI is a self-declared tax. Each year, you must assess whether you meet the criteria and submit a declaration. Failure to do so allows the French tax authorities to claim unpaid taxes up to six years retroactively, including penalties.

The IFI return is usually due at the end of May.

Simplify Your Property Tax Situation with Expert Help

French property taxation involves multiple layers of complexity, especially for non-residents. Working with a professional bilingual firm that understands international structures and local tax rules is the best way to stay compliant and avoid costly mistakes.

ESCEC International is a Paris-based CPA office supporting expats, investors, and business owners with personalized tax planning and property advice in France. Our English-speaking accountants are here to help you navigate everything — from notary fees to IFI.

Need tailored tax guidance for your French property investment?

Contact ESCEC International and get expert advice in English, wherever you are in the world.