Buying Property in France as a UK Expat: 2025 Guide

Thursday, 20 February 2025

France remains one of the most attractive destinations for property investment, whether you are looking for a new home or an addition to your property portfolio. With a mix of bustling cities, scenic countryside and coastal retreats, France is a popular spot for those looking to move abroad. But what is the purchasing process for a UK expat and what benefits could you receive? In this guide, we delve into the ins and outs of property buying in France as a foreigner to help you make an informed decision when buying your first or next property.

  • The Mortgage Process for Foreigners
  • Financial Incentives and Benefits for Foreign Buyers
  • Popular Regions for Property Investment
  • Potential Challenges to Consider
  • Tips for UK Expats Looking to Buy Property in France
  • Get in Touch for French Property Law Guidance Today


The Mortgage Process for Foreigners

For British citizens and other non-French investors, purchasing property in France remains a relatively straightforward process. However, post-Brexit regulations have introduced some changes, particularly regarding residency rules. One major impact is the 90-day stay limit, which restricts non-EU citizens (including Britons) from staying in France for more than 90 days within a 180-day period.

But this doesn't stop you from buying a property in France. Foreign buyers can obtain a mortgage in France, but conditions vary depending on residency status and nationality. Here is a breakdown of the steps you can expect to take when purchasing a property in France.


1. Eligibility

Non-residents can typically borrow between 70% and 85% of the property's value with EU citizens receiving more favourable conditions. Non-EU nationals may need to provide a higher deposit (up to 40%) as lenders may see you as a higher risk.


2. Types of Mortgages

  • Fixed-Rate Mortgages: This type of mortgage offers long-term stability for homebuyers and allows for easy budgeting with a fixed interest-rate, making it a common choice for foreign buyers.
  • Variable-Rate Mortgages: A variable-rate mortgage means the interest rate can fluctuate, potentially leading to lower payments at times but it also comes with higher risk.
  • Capped-Rate Mortgages: This style of mortgage is a combination of fixed and variable rates which can limit your risk exposure.
  • Interest-Only Mortgages: Popular among investors, an interest-only mortgage means your monthly mortgage payments will only be calculated based on the accumulated interest each month.


3. Requirements

As with all mortgage applications, you will have to meet a lender's criteria before they offer you a mortgage. Lenders will typically request proof of income, recent bank statements and a French bank account for your mortgage payments to come out of. Self-employed buyers must provide at least three years of audited financial statements to prove you have a stable income.


4. Timeline and Costs

Getting approval on a French mortgage can take between 12 to 14 weeks. This is due to various legal processes and the different players involved in the process. You should also be aware of the numerous fees associated with getting a mortgage. This includes:

  • Valuation Fees: The lender may ask for a valuation of the property which will incur a fee. This will typically be around €250.
  • Mortgage Arrangement Fees: This is the main fee for taking out a mortgage. The exact amount will depend on your lender but this is usually about 0.5% to 1% of the loan amount.
  • Notary Fees: A notary handles all the legal elements of the mortgage transaction making them a crucial part of the home buying process. The fee for a notary can vary from property to property.
  • Other Fees: Broker fees and transfer fees should also be accounted for to ensure you don't receive any unexpected costs.


Financial Incentives and Benefits for Foreign Buyers

Investing in French real estate comes with several financial advantages, including tax reductions, government-backed loans and incentives for energy-efficient properties. These benefits make France an attractive market for both lifestyle buyers and investors.


Zero-Interest Loans (Prêt à Taux Zéro - PTZ)

The Prêt à Taux Zéro (PTZ) is a government-back, interest-free loan designed to help buyers acquire their first property. While primarily aimed at French residents, non-residents who plan to relocate to France may also qualify under special conditions.

Key Information:

  • This loan is interest-free covering up to 40% of the property price.
  • It is available for new-build properties or homes requiring major renovations.
  • You must be a first-time homeowner or have not owned a property in the last two years.
  • The property must be used as a primary residence.
  • Income thresholds apply and vary by region and household size.


Reduced VAT for New Builds

For buyers looking for a new-build property, France offers a reduced VAT rate of 5.5% or 10% instead of the normal 20%. This lowers the overall purchase cost of a property, allowing those looking for a new home to have more options available to them.

Key Information:

  • For new-build properties.
  • Applies to off-plan properties (also known as VEFA - Vente en l'État Futur d'Achèvement) and renovated homes in specific areas.
  • Can make high-cost urban areas more affordable.


Regional Incentives for Buyers and Investors

Different regions in France offer incentives to attract property buyers to purchase a home in their local area. These incentives are commonly offered by rural areas, historic towns and regions undergoing economic revitalisation. Here are a few examples of the regions offering grants and incentives:

  • Brittany and Normandy: Grants for restoring historic properties and rural homes.
  • Nouvelle-Aquitaine: Tax breaks for investing in eco-friendly homes.
  • Alps and Pyrenees: Financial aid for ski chalet renovations to boost tourism.
  • Paris & Île-de-France: Special financing programmes for first time buyers in affordable housing projects. Energy


Efficiency Grants (MaPrimeRénov' & Zero-Interest Eco Loans)

With France's sustainability push, buyers purchasing energy-efficient homes or upgrading older properties can receive grants and financial aid.

MaPrimeRénov' (Energy-Efficiency Grant)

This government grant helps cover costs for renovations that improve a property's energy efficiency. Available to all property owners, including foreigners, this grant can cover up to 50% of renovations costs such as installing insulation, solar panels and heating systems. The amount you will receive varies depending on your income and project scope.

Zero-Interest Eco Loan

The Eco-PTZ zero-interest loan helps fund energy-efficient renovations available for both primary and secondary homes. You can expect finance up to €50,000 in renovation work and there is no income limit for this particular grant.


Exemptions on Capital Gains Tax for Primary Residences

Foreign buyers looking for a property to live in as their primary residence can benefit from a full exemption on capital gains tax when selling. The property must have been your main residence for at least two years before you sell for you to claim this exemption. For non-residents, reduced tax rates apply if the property was a previous main home and sold within a reasonable timeframe.


Lower Property Purchase Costs Compared to Other European Countries

Compared to countries like the UK or Germany, France has relatively moderate property prices and lower transaction fees for new builds. This makes France a great place to buy a home, especially if it's your first! With new-build transaction fees at 2-3% of the purchase price compared to 5-10% in some countries and competitive mortgage interest rates for non-residents, it's clear to see why France is a popular country for expats to move to.


Popular Regions for Property Investment

France is a diverse country with a place for everyone. From the hustle and bustle of a city to the peaceful countryside and everything in between, France can cater to the different lifestyles of UK expats making it the perfect location to buy a property.

  • Paris: The capital remains a top choice for investors seeking high-end real estate and long term value appreciation. Prime locations like Le Marais, Saint-Germain-des-Prés, and the Champs-Élysées see constant high demand.
  • French Riviera (Côte d'Azur): A luxury hotspot with properties in Nice, Cannes and Saint-Tropez, this exclusive area offers stunning coastal views and is typically attractive to wealthy buyers seeking second homes or rental investments.
  • Provence and Bordeaux: Known for their vineyards, châteaux and historic homes, these areas appeal to lifestyle buyers looking for character properties. Bordeaux, in particular, offers a cultural appeal.
  • Alps and Pyrenees: Ideal for ski resort investments, buyers seeking vacation homes or short-term rental often target these regions.


Potential Challenges to Consider

Although France is a popular destination for expats to move for a reason, there are also some pitfalls to consider before taking the leap. Here are just a few examples of the challenges you might encounter during your house hunting:

  • Legal Complexity: French property laws can be complicated, especially when it comes to inheritances laws such as forced heirship rules. However, with a notary, you can successfully navigate the complexities of French Property Law!
  • High Costs: Additional expenses such as notary fees, land taxes and renovation costs must be calculated into your budget to avoid unexpected fees.
  • Language Barrier: Buying a property in France means many legal and administrative processes are conducted in French. This can make the legal process difficult for non-French speakers when navigating contracts and negotiations. To avoid this, you should opt to hire a bilingual real estate agent or legal expert (like ourselves) to help you through the homebuying process.


Tips for UK Expats Looking to Buy Property in France

Think buying a home in France is your next step? We recommend you follow these key strategies to ensure you secure the home of your dreams:

  • Work with a bilingual real estate agent or mortgage broker who understands local regulations and can guide you through the process.
  • Ensure all documents are translated and certified to avoid legal misunderstandings.
  • Consider hiring a notaire for expert legal assistance, particularly for inheritance and tax-related matters.
  • Plan for additional costs beyond the property price, including taxes, renovations and legal fees.


Get in Touch for French Property Law Guidance Today

If you are looking for a property in France, whether it be your first home or one of many, we can help! At France Tax Law, we can help you with all things Property Tax. From buying a new property to understanding tax and succession implications, our team of expert notaries can help you navigate the home buying process with ease. Get in touch today for Property Tax Law advice from France Tax Law.


FAQs


Can I buy a house in France if I'm not a citizen?

Yes, foreigners can buy property in France without restrictions, regardless of citizenship. However, non-EU buyers may face additional requirements for mortgages and taxation, especially post-Brexit for UK citizens.


What taxes do I pay if I own a house in France?

If you own a house in France, you must pay property tax (taxe foncière) and, if it's a second home, housing tax (taxe d'habitation) may also apply. Additionally, if you rent out or sell the property, you may be liable for capital gains tax and wealth tax (IFI) on high-value properties.


Do non-residents pay taxes in France?

Yes, non-residents must pay taxes in France on income generated from French sources, such as rental income, which is subject to French income tax and social charges. Additionally, they may be liable for capital gains tax on property sales and property-related taxes like taxe foncière.