Selling property in France is a different experience compared to the UK, so it’s crucial to seek expert legal advice before making any commitments. At Tees, our bilingual legal specialists offer comprehensive support to ensure a smooth, stress-free transaction.
Understanding the French property market
The French real estate market often leans towards a buyer’s market, influenced by political and economic factors. While this may affect your sale price, it can also attract more potential buyers looking for opportunities.
Property valuations and Estate Agent mandates
Many estate agents provide free valuations, typically in exchange for securing a sales mandate. Ensure the mandate is non-exclusive if you’d like the flexibility to engage multiple agents. Carefully check the commission terms before signing.
Setting a realistic asking price
Pricing your property appropriately is key. Overpricing can deter buyers, especially those seeking quick transactions. Properties left on the market for extended periods may raise concerns about potential issues.
Mandatory property diagnostics
Sellers are legally required to provide diagnostic reports covering aspects such as asbestos, electricity, and energy performance. Having these reports ready or arranging them promptly can streamline the process.
The Compromis de Vente
The initial sales contract in France, known as the “compromis de vente” or “promesse de vente”, is typically drafted by the estate agent. However, it is essential to have this reviewed by a qualified lawyer. Your lawyer will:
- Ensure all necessary disclosures are made.
- Identify any risks or hidden defects.
- Include appropriate liability exclusion clauses.
Capital Gains Tax (CGT) in France
For UK residents, French CGT is 19%, with an additional 7.5% solidarity tax, totalling 26.5%. EU residents face a higher rate of 36.2%, including social charges. Tax exemptions may apply based on ownership duration:
- 22 years for tax exemption.
- 30 years for social charges exemption.
- Full exemption applies to main residences.
Avoiding common pitfalls
Misrepresenting a holiday home as a main residence to evade tax is strongly discouraged. French authorities cross-reference property records and may impose penalties for under reporting sales prices. Additionally, side payments outside the notaire’s account are illegal and can lead to severe fines.
In cases of separation or divorce, the ownership period for CGT purposes remains unaffected, provided one party continues to reside in the property.
Optimising your tax position
Sellers can reduce their taxable gain by including eligible expenses, such as renovation costs and notarial fees, in the property’s acquisition price. Our legal experts can advise on maximising these deductions.
Why choose Tees for your french property sale?
Our bilingual team offers tailored legal guidance, including:
- Pre-sale advice on tax implications and seller responsibilities.
- Contract reviews to ensure your interests are protected.
- Liaison with notaires to negotiate terms and arrange signings.
- Compliance checks on mandatory declarations and diagnostics.
- Secure fund management for smooth financial transactions.
With Tees, you benefit from expert legal support at every stage of your French property sale. Contact us today for personalised advice and a hassle-free experience.
