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Acte
Authentique: The purchase is finalised by a "Notarial
act of sale" (Acte Authentique) that is signed in front
of the Notary of the purchaser and also sometimes in front
of the seller's Notary. The Notary's fees are entirely the
responsibilty of the purchaser. These include his / her fees,
registration charges and any other disbursements. The total
can often be more than 7 percent of the selling price.
The
transfer of the property is then completed.Organising
a buying visit inspection? Click
here
Gas
checks:
Since
1st November 2007 all properties offered for sale in France
with natural - mains gas services installed more than 15 years
ago must include a Diagnostic Gaz in the Dossier de Diagnostic
Technique (This is rather like the HIP - Home information
pack in England and Wales). It costs around 100 - 150
for the test that includes supply pipes, boiler, water heater
and radiators. The certificate will be valid for three years
and the seller has to organise and pay for this before a compris
de vente can be signed.
There
are also new rules for surveys from November 2007 all the
technicans carrying out these tests must be accredited by
COFRAC Comité d’accreditation français (Similar to Corgi in
the UK). The new rules could effect around 10 million properties
when they go on the sales market. If a property has bottled
- cylinder gas (like calor gas) this is not covered by the
new test.
Buying
or selling info in France - If
you
need to check out what property has sold for in France then
you need to visit www.immoprix.com
. The data is provided by Notaires. You'll find prices and
indices for each type of property (house, apartment, land)
based on its geographical location (region, department, municipality,
district, neighbourhood).
FACT
File - Property Taxes in France
So you are about to purchase that ideal property - If you
require finance or don't you still have to take into account
the payment of property taxes. In France the tax system is
centralised, however the location of the property will ultimately
determine how much you pay.
First
of all you have to pay the"notaire's" fee. Most of
this in fact goes to the government like Stamp Duty in the
UK. This will work out around 6% to 8% of the purchase price.
There is also a small land registry tax to pay.
The property sale is now complete. You have the"Taxe D'Habitation"
which is a local tax. The amount you will pay is determined
from the cadastral value of the property. This is based on
the size and location -not market value. It is generally thought
to be reasonable particularly in rural areas. It should be
noted that if you let your property as a holiday let and go
there a few times a year you still pay the"Taxe D'Habitation",
but in many areas you will also have to collect a"Taxe
de Séjour" from your "paying guests". The authorities
see it as you are making money from renting out the property
then so you should pay them some revenue as well. This might
only be a few cents per person per day, but it still has to
be paid and it will depend on your local town hall.
The "Taxe foncière" is also paid annually. This generally
quite low. There is also a wealth tax "Impot de solidarité
sur la fortune" that is paid by owners of property worth
in excess of €732,000.
Inheritance
tax:"Impot sur les successions" this usually has to
be paid when the owner dies or one of them.
You are also expected to pay tax on any rental income and
although France has tax treaties with many countries including
the UK it is worthwhile employing an accountant to help you
manoeuvre through the French tax minefield.
Holiday
rental income is subject to VAT at 19.6 per cent. For
furnished lettings up to an annual value of €76,000 there
is a 72 per cent rate deduction in respect of expenses under
the 'Micro-Bic' regime. The remaining 25% net profit is taxed
at 25%. If the investor has assets with a value in excess
of €720,000 the owner will be subject to an annual wealth
tax of between 0.55 per cent and 1.8 per cent. If you dispose
of your property after less than two years you will be subject
to income tax at 16 per cent and after that up to 47 per cent.
See
also:French Property Tax Deadline May 09
FNAIM -Fédération Nationale de l'Immobilier - France
FNAIM
is the 1st professional organisation of estate agents.Set
up in 1946, FNAIM (French national real estate federation)
is recognisable by the famous Yellow Cube logo, it brings
together, over 11,000 real estate agencies. In becoming FNAIM
members, professionals undertake to abide by the quality charter
developed by the Federation. The charter underlines the ethics,
integrity and professionalism required of all FNAIM members.
As
a professional trade association, FNAIM is concerned with
representing and defending the interests of real estate professionals
and their clients, the consumers. Its mission has encouraged
it to maintain privileged ties with public authorities and
to participate actively in the preparation of statutory and
regulatory provisions for all topics likely to have decisive
implications for exercising a real estate profession, in particular,
and the housing policy, in general.
With
a number of analytical tools at its disposal, FNAIM is unquestionably
a leading reference in the provision of information and economic
studies on the real estate market. Every quarter, it puts
out business updates presenting the position of old housing
on the property transaction market and once a year, that of
the income-producing real estate market. It also publishes
studies on the real estate industry and statistics worth knowing.
FNAIM can thus focus its lobbying action on viewpoints based
on fact and supported by reliable economic data.
FNAIM is also backed by a Legal Department that keeps an on-going
legislative and regulatory watch on the industry and allows
the Federation to be a source of analyses and proposals in
its dealings at Parliament level. It also meets the needs
of members by being available for consultation by telephone
or post.
New
Mandatory Property Surveys
Diagnostic
de Performance Energétique - DPE (Energy Performance
Survey): From the 1st July 2007, these are mandatory for
all sales. This survey is provided purely for information
purposes (like in England
and Wales, Scotland,
Northern
Ireland and The
Republic of Ireland) and covers levels of energy
consumption and greenhouse gas emissions. Properties are rated
from A to G (A represents optimal performance) and the survey
is valid for 10 years. It also includes recommendations for
improving energy consumption Article L134.L of the Building
and Housing Code. If you are letting out your property
remember The DPE - Diagnostic de Performance Énergétique
should accompany any new or renewed lease agreement for a
lease period of longer than four months. It is the responsibility
of the property owner to have a building examined and to make
any obligatory improvements.
CREP
-Risque d'Exposition au Plomb - Lead Survey:
This has been mandatory since July 1998 for properties built
before the 1st January 1949. The lead survey is valid for
one year only. If the survey is not provided a vendor can
be liable to criminal action if let is detected under Article
L1334-5 and 1334-8 of the Public Health Code. If you are
letting out your property remember As of 12 August 2008,
landlords of property built before 1 January 1949 must attach
a CREP (Risque d'Exposition au Plomb) report detailing the
risk of exposure to lead poisoning within the building. This
CREP must accompany any new or renewed lease agreement.
Carrez
Law: For the sale of an apartment all relevant documents
must include a reference to the exact surface area in a property,
if not the buyer is entitled to have the sale annulled up
to one month after signature. If the surface area proves to
be smaller than the stated amount, the new owner has one year
in which to obtain the a reduction in the purchase price.
If the the surface area has been underestimated, the vendor
(seller) has no recourse against the buyer (Law 96-1107 of
1th December 1996
Natural
Gas Installations -installations de gaz : From the ist
November 2007 it has been mandatory to carry out a survey
on the state of any gas installations that are over 15 years
old. The survey has to be carried out by an ISO 17024 certified
surveyor and is valid for one year only. It covers the gas
pipes and ventilation / combustion systems. Comes under Article
L134-6 of the Building and Housing Code.
Asbestos
Survey - amiante: An asbestos survey must be included
in the sales agreement for any property built before the 1st
July 1997.The survey has to be carried out by an ISO 17024
certified surveyor and samples are then analysed by an approved
laboratory - COFRAC
Electrical
Wiring: A report on the condition of the electricity supply
in the property, where the wiring is over 15 years old. This
requirement is a recent (2008) change in the law, and is scheduled
to become operational on 1st January 2009. A survey is valid
for three years. No survey is necessary where a certificat
de conformité can be produced as evidence that the property
complies with the regulations, provided the certificate is
less than three years old.
Natural
and man made risks report - un plan de prévention des risques
naturels: A report on the existence of natural risks that
include flooding, earthquakes etc or a man made risk like
transportation of hazardous substances or the nuclear industry
is required for an property located in a high risk area. High
risk areaa are defined by the Prefecct L.125-5 of the Environment
Code and the reports are valid for six months.
Termite
Survey - etat des risques parasitaires: This survey must
be included in the deed of sale for properties located in
contaminated areas as defined by the Prefect. A surevey is
valid for 3 months only.
Property
Surveys that are likely to be introduced in France
Septic
tanks Survey - Fosses septiques: A
report on the condition of a septic tank, for those properties
which do not have mains drainage.The government keeps moving
back the date when this survey requirement is scheduled to
come into operation. The date now being suggested is 2013.
N.B.
The above information is given in good faith by jml Property
Services and the website it is being displayed on. It should
not be relied on for accuracy and property owners should consult
tax experts / accountants in the country their property is
in and also their home country. ©jml property Services ©jml
property Services 07-05
and 01-09
Version
Française
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