Property Sales Process | Selling Costs

Agency's commission:

If a real estate agency is used to sell the property, they will be entitled to a commission on completion. Normally these costs are met by the vendor but in some exceptional circumstances these are paid by the purchaser. If the purchaser is to pay the agent's commission, this should be agreed in advance and included within the “mandat” (the official instruction from the vendor to the agent). French estate agency fees are high and normally range between 5 and 10% of the purchase price.

Capital Gains Tax:

Residents in France pay 16% on the net capital gain made by selling property. Properties which have been used as a principal residence from the time of purchase, or for a minimum of five years, are exempt from CGT, however.

French residents pay an extra 11% in French National Insurance, effectively raising their rate of CGT to 27%. Old age pensioners and invalids are exempt from CGT. Owners who are not residents of an EU country pay CGT at a rate of 33.3%, subject to any applicable double tax treaty. Individuals who own their properties through a Société Civile Immobilière (SCI) are, as shareholders, individually liable for payment of CGT.

Property transfer tax:

Transfer taxes and stamp duty add on approximately 7-7.5% on to the purchase price. This cost is normally paid by the buyer unless the price is stated in the offer to be “acte en main”, in which case it us understood that the seller will pay.

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