| Acte
Authentique: The purchase is finalised by a "Notarial act of sale"
(Acte Authentique) that is signed in front of the Notary of the purchaser and
also sometimes in front of the seller's Notary. The Notary's fees are entirely
the responsibilty of the purchaser. These include his / her fees, registration
charges and any other disbursements. The total can often be more than 7 percent
of the selling price. The
transfer of the property is then completed.Organising
a buying visit inspection? Click
here Gas
checks: Since
1st November 2007 all properties offered for sale in France with natural - mains
gas services installed more than 15 years ago must include a Diagnostic Gaz in
the Dossier de Diagnostic Technique (This is rather like the HIP - Home information
pack in England and Wales). It costs around 100 - 150 for the test
that includes supply pipes, boiler, water heater and radiators. The certificate
will be valid for three years and the seller has to organise and pay for this
before a compris de vente can be signed. There
are also new rules for surveys from November 2007 all the technicans carrying
out these tests must be accredited by COFRAC Comité d’accreditation français (Similar
to Corgi in the UK). The new rules could effect around 10 million properties when
they go on the sales market. If a property has bottled - cylinder gas (like calor
gas) this is not covered by the new test. Buying
or selling info in France - If
you need to
check out what property has sold for in France then you need to visit www.immoprix.com
. The data is provided by Notaires. You'll find prices and indices for each type
of property (house, apartment, land) based on its geographical location (region,
department, municipality, district, neighbourhood). FACT
File - Property Taxes in France
So you are about to purchase that ideal property - If you require finance or don't
you still have to take into account the payment of property taxes. In France the
tax system is centralised, however the location of the property will ultimately
determine how much you pay. First
of all you have to pay the"notaire's" fee. Most of this in fact goes to
the government like Stamp Duty in the UK. This will work out around 6% to 8% of
the purchase price. There is also a small land registry tax to pay.
The property sale is now complete. You have the"Taxe D'Habitation" which
is a local tax. The amount you will pay is determined from the cadastral value
of the property. This is based on the size and location -not market value. It
is generally thought to be reasonable particularly in rural areas. It should be
noted that if you let your property as a holiday let and go there a few times
a year you still pay the"Taxe D'Habitation", but in many areas you will
also have to collect a"Taxe de Séjour" from your "paying guests". The authorities
see it as you are making money from renting out the property then so you should
pay them some revenue as well. This might only be a few cents per person per day,
but it still has to be paid and it will depend on your local town hall.
The "Taxe foncière" is also paid annually. This generally quite low. There
is also a wealth tax "Impot de solidarité sur la fortune" that is paid
by owners of property worth in excess of €732,000. Inheritance
tax:"Impot sur les successions" this usually has to be paid when the owner
dies or one of them.
You are also expected to pay tax on any rental income and although France has
tax treaties with many countries including the UK it is worthwhile employing an
accountant to help you manoeuvre through the French tax minefield. Holiday
rental income is subject to VAT at 19.6 per cent. For furnished lettings up
to an annual value of €76,000 there is a 72 per cent rate deduction in respect
of expenses under the 'Micro-Bic' regime. The remaining 25% net profit is taxed
at 25%. If the investor has assets with a value in excess of €720,000 the owner
will be subject to an annual wealth tax of between 0.55 per cent and 1.8 per cent.
If you dispose of your property after less than two years you will be subject
to income tax at 16 per cent and after that up to 47 per cent. See
also:French Property Tax Deadline May 09
FNAIM -Fédération Nationale de l'Immobilier - France
FNAIM
is the 1st
professional organisation of estate agents.Set up in 1946, FNAIM (French national
real estate federation) is recognisable by the famous Yellow Cube logo, it brings
together, over 11,000 real estate agencies. In becoming FNAIM members, professionals
undertake to abide by the quality charter developed by the Federation. The charter
underlines the ethics, integrity and professionalism required of all FNAIM members. As
a professional trade association, FNAIM is concerned with representing and defending
the interests of real estate professionals and their clients, the consumers. Its
mission has encouraged it to maintain privileged ties with public authorities
and to participate actively in the preparation of statutory and regulatory provisions
for all topics likely to have decisive implications for exercising a real estate
profession, in particular, and the housing policy, in general. With
a number of analytical tools at its disposal, FNAIM is unquestionably a leading
reference in the provision of information and economic studies on the real estate
market. Every quarter, it puts out business updates presenting the position of
old housing on the property transaction market and once a year, that of the income-producing
real estate market. It also publishes studies on the real estate industry and
statistics worth knowing. FNAIM can thus focus its lobbying action on viewpoints
based on fact and supported by reliable economic data.
FNAIM is also backed by a Legal Department that keeps an on-going legislative
and regulatory watch on the industry and allows the Federation to be a source
of analyses and proposals in its dealings at Parliament level. It also meets the
needs of members by being available for consultation by telephone or post. New
Mandatory Property Surveys Diagnostic
de Performance Energétique - DPE (Energy Performance Survey): From
the 1st July 2007, these are mandatory for all sales. This survey is provided
purely for information purposes (like in England
and Wales, Scotland,
Northern
Ireland and The
Republic of Ireland) and covers levels of energy consumption and
greenhouse gas emissions. Properties are rated from A to G (A represents optimal
performance) and the survey is valid for 10 years. It also includes recommendations
for improving energy consumption Article L134.L of the Building and Housing Code.
If you are letting out your property remember The DPE - Diagnostic de Performance
Énergétique should accompany any new or renewed lease agreement for a lease period
of longer than four months. It is the responsibility of the property owner to
have a building examined and to make any obligatory improvements. CREP
-Risque d'Exposition au Plomb - Lead Survey:
This has been mandatory since July 1998 for properties built before the 1st January
1949. The lead survey is valid for one year only. If the survey is not provided
a vendor can be liable to criminal action if let is detected under Article L1334-5
and 1334-8 of the Public Health Code. If you are letting out your property
remember As of 12 August 2008, landlords of property built before 1 January 1949
must attach a CREP (Risque d'Exposition au Plomb) report detailing the risk of
exposure to lead poisoning within the building. This CREP must accompany any new
or renewed lease agreement. Carrez
Law: For the sale of an apartment all relevant documents must include a reference
to the exact surface area in a property, if not the buyer is entitled to have
the sale annulled up to one month after signature. If the surface area proves
to be smaller than the stated amount, the new owner has one year in which to obtain
the a reduction in the purchase price. If the the surface area has been underestimated,
the vendor (seller) has no recourse against the buyer (Law 96-1107 of 1th December
1996 Natural
Gas Installations -installations de gaz : From the ist November 2007 it has
been mandatory to carry out a survey on the state of any gas installations that
are over 15 years old. The survey has to be carried out by an ISO 17024 certified
surveyor and is valid for one year only. It covers the gas pipes and ventilation
/ combustion systems. Comes under Article L134-6 of the Building and Housing Code. Asbestos
Survey - amiante: An asbestos survey must be included in the sales agreement
for any property built before the 1st July 1997.The survey has to be carried out
by an ISO 17024 certified surveyor and samples are then analysed by an approved
laboratory - COFRAC Electrical
Wiring: A report on the condition of the electricity supply in the property,
where the wiring is over 15 years old. This requirement is a recent (2008) change
in the law, and is scheduled to become operational on 1st January 2009. A survey
is valid for three years. No survey is necessary where a certificat de conformité
can be produced as evidence that the property complies with the regulations, provided
the certificate is less than three years old. Natural
and man made risks report - un plan de prévention des risques naturels: A
report on the existence of natural risks that include flooding, earthquakes etc
or a man made risk like transportation of hazardous substances or the nuclear
industry is required for an property located in a high risk area. High risk areaa
are defined by the Prefecct L.125-5 of the Environment Code and the reports are
valid for six months. Termite
Survey - etat des risques parasitaires: This survey must be included in the
deed of sale for properties located in contaminated areas as defined by the Prefect.
A surevey is valid for 3 months only. Property
Surveys that are likely to be introduced in France Septic
tanks Survey - Fosses septiques: A report on the condition
of a septic tank, for those properties which do not have mains drainage.The government
keeps moving back the date when this survey requirement is scheduled to come into
operation. The date now being suggested is 2013.
Property
Insurance in France - Home and Household property insurance in France Called
a contrat assurance multirisques habitation or assurance multirisques vie privée
or la multirisque. The
insurance should cover the cost of repairs or rebuilding including permanent fixtures
and fittings within the property, such as fitted kitchens and bathrooms due to
damage caused by : natural disasters, floods, fire, storms, burst pipes, explosions,
lightning and theft. It should also give you civil liability insurance (responsabilitée
civile propriétaire). When
calculating the value of your home, you need to take into account the cost of
rebuilding it and the sum insured should be sufficient to rebuild all buildings
as well as all outdoor structures such as swimming pools, terracing or perimeter
walls. The rebuild value should take into account also the as removal of debris,
architectural and other professional services. This value (like in the UK) is
often quite different to the market price of the property and the price of the
land should be excluded. Insurers do not have to be based in France and as such
an Insurance company broker based in the UK with a policy written in English can
be beneficial. Click
Here for further information. Written
notice to cancel a French insurance policy If
you use a French insurance company under the Codes des Assurances, it is necessary
to give a minimum of 2 months written notice prior to the Annual Renewal date
to avoid having to automatically continue with the insurance for the following
year. You will not normally have this rule if you use a company that is based
in the UK for example, but it is important to check this fact out, particularly
if you are looking for an alternative provider. Holiday
Homes The
owner of a self catering holiday property that is rented out as holiday accommodation
must make sure that the insurers are aware it is let for holidays. You should
check that there is adequate public liability cover as a landlord. If
the property is a holiday home insurers must be advised of the periods of non-occupancy.
If for example you need to keep the electricity on during periods of non occupancy
for heating, alarms, garden irrigation etc, you should let the insurance provider
know. N.B.
The above information is given in good faith by jml Property Services and the
website it is being displayed on. It should not be relied on for accuracy and
property owners should consult tax experts / accountants in the country their
property is in and also their home country. ©jml property Services ©jml
property Services 07-05
/ 01-09 /12-09 Version
Française
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