42 RUE DE BELLECHASSE
75007 PARIS
TEL +33 1 47 53 00 01
FAX +33 1 47 53 00 12
contact@exclusives
demeures.com

Non-Residents - Expatriots

Finding the apartment or home of your dreams is an exciting endeavor that requires a significant time investment.

Being far away from France is an additional constraint on your capacity to invest or disinvest.

Expatriots and non-residents arriving in a new country often request “customized and smart customer assistance” to prepare their return or their arrival in France.

Our goal is to facilitate the purchase or sale of your real estate property, helping you to gain time and accurately meeting your expectations.

Exclusive Demeures offers personalized support to expatriots and non-residents in their search for housing or an investment in Parisien or French real estate.

Our mastery of different foreign languages, commercial and legal training, as well as our knowledge of several countries and cultures, enables us to assist you throughout your project.

 

Property Search – Investment in France
Process of buying a property in France
Rental or management of your property in France
Taxation and selling your property in France

PROPERTY SEARCH – INVESTMENT IN FRANCE

Together, we can define your real estate search criteria.

To trust us is to benefit from: :

-    A long term partnership that advises you on the establishment of your property in France,
-    Research privaliging quality properties or properties with strong potential with renovation,
-    Our network and research tools which help you find a property quickly and save time,
-    A savoir-faire for negotiating the sale at a fair price, leaving you stress free,
-    Assistance throughout the administrative process
-    Over 25 years of experience


Our Savoir-Faire
The research mandate of Exclusive Demeures provides you with the following services:

-    Telephone interview to collect information about your profile and search criteria with priority ranking
-    Creation of a document summarizing your research and a signed research agreement,
-    Mailings with a selection of properties including descriptions and photos,
-    Organization of appointments and visits of selected properties,
-    Collection of necessary documents (diagnostics, meeting records) once your choice is made,
-    Responses to the legal and financial questions concerning your purchase,
-    Negotiation of a price that represents your best interest,
-    Advisory services from the preparation of the offer to the countersignature,
-    Assistance in organizing your finances at your request,
-    Selection of a public notary that speaks your language,
-    Assistance to the notary to prepare the deed, monitoring of the record, assistance with loans and other
      formalities,
-    Coordination of schedules with the public notaries for the appointment for the signing of the final act,
-    After-sales service, such as advice on the choice of mover, interior designer, and renovation firm

If you have further inquiries, please click “Define your search”, fill in the form and leave your question in the comments section.


DEFINE YOUR SEARCH


Payment for these services is dependent on the success of your search and, therefore, the signature of the deed (Hoguet law No. 70-9 of January 2, 1970).
 

PROCESS OF BUYING A PROPERTY IN FRANCE

In France, the Hoguet law strictly regulates the process of buying or selling real estate property. Professional services are therefore required in this process.

Real estate agent

The agent is responsible for the research or sale of your property. 5%-10% of the transaction amount is charged to the buyer or seller. The price that is displayed in the agency includes agency fees. (*FAI in French stands for Agency Fees Included).

Public notary

The notary is responsible for writing up the “Promise of Sale” agreement and the “Deed of Sale”. Acquisition costs paid to the public notary include the notary fees and local taxes and charges. The fee is the same for all notaries. The cost will vary according to the total amount of your purchase. Please preview this cost being between 6%-10% of the cost of your purchase.

The process of buying a property

Once you have found your desired real estate and your offer has been accepted by the seller, the buyer and seller must sign a “sales agreement.”

The “Promise of Sale” or sales agreement can be written up by either the public notary or the real estate agent. It is written in French and contains: the identities of the seller and the buyer, a complete and precise description of the property, the surface area of the land and/or dwelling, the price, details outlining the payment of the deposit (10%) which will lock the sale, the total fees of the notary and the real estate agency, details of previewed works under the sale, results of the property diagnostics, details about the financing of the purchases and the date when the bank loan offer should be transmitted to the public notary, and the suspensive clauses and penalities to be borne by the buyer or seller in the event of a lack of agreement.

The “suspensive clause” allows one to dissolve his/ger contractual engagement and protect the deposit. However, the seller must agree to the terms of the clause. Examples of suspensive clauses include those regarding: the procurement of a loan, securing a specific use of the property, and works effectuated by the seller.

The “deadline to retract the offer”. Once the seller and the buyer have signed the “sales agreement”, they will receive a legal copy through the post in a registered letter requiring a confirmation of reception. Once the buyer has received this legal copy, he/she has a period of seven days during which the buyer can still withdraw from the agreement. Once this seven-day period has ended, the buyuer can no longer retract other than through a suspensive clause. For example, the “sales agreement” can be the subject of the obtention of a loan by the buyer before a specified date. On that date, the buyer must produce evidence of the loan procurement or of his/her loan refusal. If the buyer does not obtain his/her loan, the “sales agreement” is cancelled and the buyer recovers his/her deposit. The buyer has 45 days to provide proof of the procurement of a loan.

A few weeks before signing the “deed of sale”…
Once the “sales agreement” is signed, all parties must agree on a date for the signing of the deed. The notary will send a a draft of the deed of the sale that contains the same information as the “sales agreement”. The following documents are required: birth certificate, marriage or divorce certificate. If the buyer or seller cannot be present at the sale, they can give appoint a third party to represent them to sign the “deed of sale” on site.

Before the day of the signing of the sale, the funds for the purchase are transferred to a special account belonging to the notary. In the case of a loan, the buyer must inform his/her bank of the date of the signing so that the banker may transfer the sum to the account of the notary.

The day of the sale, the buyer must supply insurance for the property. Once the “deed of sale” has been signed, the notary pays the registration taxes and fees. The keys to property are then handed over to the buyer. Some months later, the buyer will receive a document informing the recent buyer of the registration of his property title. The original “deed of sale” is kept by the public notary.

The report of diagnostics
Upon the sale, the seller must undertake a real estate diagnostic report. This report informs the buyer about the state of the property that he/she is buying. This report is signed by the buyer upon the signature of the “sales agreement.” It contains the following diagnostics: energetic performance, asbestos, lead, termites, surface area (Carrez law), gas, electricity, natural risks and flooding.

Annual taxes
The owner of the real estate must pay two types of tax. The first is a land or property tax and is paid the 15th of October of each year by the owner as of the 1st of January of that same year. The day of the sale, the buyer is obliged to pay his share of the property tax on a pro rata basis to the seller. The second tax is a housing or living tax, and is paid the 15th of November of each year by the tenant or the landalord of the property living in this property as of the 1st of January of the same year.
 

RENTAL OR MANAGEMENT OF YOUR PROPERTY IN FRANCE

If you are travelling abroad ou if you invest in France as a non-resident, you can choose to rent out your French real estate property.

There are two rental options available to you: empty or furnished.

In the case that you are going abroad as an ex-patriot, the furnished rental is an option to consider in order to easily recover your property upon your return to France. The lease for a furnished rental is effectuated on an annual, renewable basis as opposed to a three years basis for empty or unfurnished rentals.

In addition, furnished rentals offer the following advantages:
-    Higher rents than unfurnished rentals
-    A higher gross leasable profit
-    A more favorable taxation


On the other hand, furnished rentals implicate higher costs and a greater turnover of tenants.

How does one calculate taxes on his/her rental income as an expatriot or non-resident?

In general, if the property is rented, most tax treaties between countries indicate that taxation will occur in the country in which the property is located – in this case, France.
 
As a non-resident or expatrior (except French diplomatic personnel who are considered French residents), your income is taxable based on your net in the same way as a French resident. Please note that any renovation work on your real estate investment if ully deductible from your property income. However, a minimum tax rate of 20% is applied to rents except if the non-resident or expatriot tax payer can justify a lower average tax rate. You must go to a non-residents tax center to complete your declaration. (Please see details about the location of non-resident tax centers in France at the bottom of the page).

For further inquiries, please click “Entrust us with your rental”, fill in the form and leave you question in the comment section.

ENTRUST US WITH YOUR RENTAL