Buying property overseas is not like buying at home — the process, the taxes and the legal system are all different. Here are some practical points worth thinking through before you commit to a French investment.
Financing your purchase
The first decision is how you pay: cash, or a mortgage. A mortgage can be taken out in dollars, sterling or any other currency, but a euro mortgage removes one source of risk — the rent from a French property is paid in euros, so repaying in the same currency means a swing in exchange rates never widens the gap between what comes in and what goes out.
The purchase itself involves at least one cross-border transfer, often a large one, and the rate on the day can move the final cost by a meaningful amount either way. See our guide on transferring money to France for ways to manage that.
The legal process
Every French sale goes through a notaire — a public officer who authenticates the transaction on behalf of the state, not just one side of it. That is not the same as having your own independent legal advice, which is worth arranging separately, especially if French is not your first language.
Signing usually happens in two stages: a preliminary contract (the compromis de vente), then the final deed (the acte de vente) some weeks later once conditions are met. After signing the compromis, a non-professional buyer has a 10-day cooling-off period to withdraw without giving a reason and without penalty, with the deposit refunded in full. See our guide to the legal process of buying in France for the detail.
How you hold the property
Buying in your own name is the simplest route, but it is not the only one — some investors buy through a French company (an SCI) instead, which can change how the property is taxed and how it passes on to heirs. There is no single right answer: it depends on your own situation, so it is worth raising with a notaire or adviser before you sign rather than after.
Income tax and social charges
Nobody escapes tax in their own country, and it is the same in France. A tax treaty between France and most countries prevents the same income being taxed twice, but if you earn French rental income you will still need to declare it in France. Our income tax in France guide covers how that actually works, including the deductions available depending on how you let the property.
Capital gains tax
Impôt sur les plus-values is payable on the sale of land, buildings, shares and certain other personal property, calculated on the difference between the sale price and the purchase price. An allowance builds up the longer you own the property, reducing the taxable gain — talk to us about the current rates and tapers for your situation before you rely on a figure.
Wealth tax on real estate
France’s impôt sur la fortune immobilière (IFI) applies once a household’s net French real estate is worth more than €1.3 million. Non-residents are only assessed on what they own in France, not on wealth held anywhere else — so owning one investment property rarely brings a non-resident anywhere near the threshold, but it is worth knowing the rule exists if you are buying at the higher end of the market.
Inheritance law
French succession law reserves a fixed share of an estate for children, which can come as a surprise if your home country’s rules work differently. Since 2015, EU rules have let many foreign nationals choose their own country’s inheritance law to apply instead, through their will — but the mechanics are genuinely case-specific and the law in this area continues to evolve, so this is one to raise with a notaire early, not something to assume from a page like this one.
If you plan to rent it out
How you let the property changes the numbers considerably. A managed French leaseback hands the day-to-day running to an operator for a guaranteed rent; a buy-to-let purchase gives you more control and, usually, a higher ceiling on returns, in exchange for taking on the letting yourself. Neither is right for everyone — it depends on how hands-on you want to be.
Check the property itself
Before you commit, ask for the mandatory technical diagnostics (energy performance and the rest — the diagnostics techniques a French seller has to provide) and read them properly rather than skimming them. If the property is a flat in a shared building (a copropriété), ask the managing agent (syndic) for the annual charges and whether any major works have already been voted — that figure can turn a good price into an expensive one.
If you need more detailed information on investing in France, get in touch.
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