Notary Fees in France: New Build vs Existing Property

Note: This content is specific to the French property market. When buying property in France, the sticker price is just the beginning. You must add the so-called "Frais de Notaire" (Notary Fees). Despite the name, these are mostly government taxes, not just the notary's salary. The cost depends entirely on the type of property: Ancien (Existing) or Neuf (New).

What are Notary Fees in France?

Notary fees, or Frais de Notaire, are a combination of various taxes and charges that buyers must pay when purchasing a property in France. These fees are usually paid to the notary, who is responsible for handling the property transfer. The fees include:

Droits de Mutation (Transfer Tax): This is the largest component of the notary fees, paid to the Department and Commune.

TVA (Value-Added Tax): This is a tax on the value added to goods and services, including property purchases.

Notary's fees: This is the notary's charge for their services, which is usually a small percentage of the purchase price.

1. Existing Property (Ancien)

This category includes any home that has been lived in or is over 5 years old.

Total Cost: Approx. 7% to 8% of the purchase price.

Breakdown: Most of this (5.8%) is the Droits de Mutation* (Transfer Tax) paid to the Department and Commune.

Impact: On a €300,000 apartment in Paris, you lose €23,000 immediately. This capital is unrecoverable.

For example, let's consider a buyer who purchases an existing property in France for €250,000. The notary fees would be approximately €17,500 to €20,000, broken down into:

Droits de Mutation: €14,500 (5.8% of €250,000)

TVA: €0 (since it's an existing property)

Notary's fees: €3,000 to €5,500 (1.2% to 2.2% of €250,000)

2. New Build (Neuf / VEFA)

This includes off-plan purchases or brand-new completed units.

Total Cost: Approx. 2% to 3% of the purchase price.

Why so low? New properties are subject to VAT (TVA, 20%), which is usually included in the developer's price. To avoid double taxation, the government reduces the transfer tax significantly.

Impact: On a €300,000 new apartment, you pay only €7,500.

For instance, let's consider a buyer who purchases a new build property in France for €300,000. The notary fees would be approximately €6,000 to €9,000, broken down into:

TVA: €60,000 (20% of €300,000, but usually included in the purchase price)

Droits de Mutation: €1,500 to €3,000 (0.5% to 1% of €300,000)

Notary's fees: €3,000 to €5,000 (1% to 1.7% of €300,000)

Investment Strategy

When deciding between buying an existing property or a new build, it's essential to consider the notary fees and their impact on your investment.

Buying New: Higher price per sqm, but lower closing costs and usually better energy ratings (DPE A or B), which is crucial for renting out legally in the future.

Buying Old: Lower entry price and charm, but high closing costs and potential renovation needs to meet energy standards.

For example, let's compare the costs of buying an existing property versus a new build:

Existing property: €250,000 purchase price + €17,500 notary fees = €267,500 total cost

New build: €300,000 purchase price + €6,000 notary fees = €306,000 total cost

While the new build seems more expensive, the lower notary fees and potential energy efficiency savings could make it a more attractive option in the long run.

Financing Notary Fees

Important: Banks in France generally do not finance notary fees. You must have this cash saved up as part of your apport (down payment). It's crucial to factor in the notary fees when calculating your budget for a property purchase in France. Make sure to save enough for the notary fees, as well as other costs such as agency fees, mortgage fees, and potential renovation costs.

Key Takeaways

Here are the key points to remember when it comes to notary fees in France:

Notary fees are approximately 7% to 8% for existing properties and 2% to 3% for new builds.

The fees include Droits de Mutation, TVA, and notary's fees.

Banks in France do not finance notary fees, so you must have the cash saved up.

Consider the notary fees when deciding between buying an existing property or a new build.

Factor in the notary fees when calculating your budget for a property purchase in France.

Calculating Your Notary Fees

To get an estimate of your notary fees, you can use an online calculator or consult with a notary. Make sure to provide the following information:

Purchase price

Type of property (existing or new build)

Location (Department and Commune)

You can also use our [Notary Fee Calculator](/en/calcul-frais-de-notaire) to get an estimate of your notary fees.

Conclusion

Notary fees are a significant cost when buying a property in France. Understanding the differences between existing properties and new builds can help you make an informed decision. By factoring in the notary fees and considering your investment strategy, you can make the most of your property purchase in France. Remember to save enough for the notary fees and other costs, and don't hesitate to consult with a notary or financial advisor if you have any questions.