Real Estate - France

French Taxation

Italian real estate taxation for buying homes abroad

The fee for home buying abroad is named Ivie (Tax value of real estate located abroad), and is equal to 7.6 per thousand of the value resulting from the act of purchase, in the absence of such a value, according to the value market in the place where the property is situated. It must be paid by the property owner or holder of rights in rem on the same.

The effect

The tax is payable "from 2011". The tax is payable in proportion to the percentage of ownership. The stability law introduced important exemptions as of January 1, 2016: that is to say that in the case of buildings used as a main residence then it will operate the exclusion provided that we refer to leasehold land registry category A1, A8 or A9.
The standard rate for calculating dell'IVIE is due in the extent of 0.76% of the property value to be weighted according to the share is both the holding period (in months) and where possessions of at least 15 days trigger the payment of a single month. If the dell'IVIE value, without deductions and without consideration of individual shareholdings, is less than 200 € will be payable but you still have to fill out the framework RW. Even if the amount due to be given in the form F24 is less than 12 euro will not be made any payment.

The tax credit

To avoid double taxation, the measure provides that the taxpayer may deduct from the tax credit of imposta.In substance, if the property tax paid abroad is higher all'IVIE, the owner will not pay no tax in Italy.

In riferimenro the agreement with France, the fact that the taxe foncière is not included among the taxes that can be scomputate the corresponding Italian tax should not hinder the tax credit.
In fact, if the deduction is already granted by the internal arrangements by identifying a more favorable regime for the taxpayer, there is no need to resort to the Convention.

Buying a house in France

The role of the Notary

The role of the Notary is crucial as it must occupy the property to verify the regularity with respect to the applicable laws.
Must verify that there are no encumbrances (eg. Mortgages) or tax / financial slopes of the seller with the administration of the condominium or with the tax authority, debts that the notary will need to address, by reducing the sales price all sums due by the seller various capacities. The notary collects the totality of the agreed price (including any mortgage) and pours a net basis to the seller.
ln plus the Notary is obliged by law to have the certification of an architect stating:
• The size: Loi Carrez.
• That the apartment is consistent with the planning regulations, that there are no unauthorized building.

Purchase new construction

Even in buying house under construction, unlike you make of Italy suffered the deed, pouring
But only part of the total price and then, based on the state of the work, subsequent payments are made. A buyer's protection, the French legislation states that it is forbidden to
manufacturer ask sums greater than those agreed according to a payment schedule required by law depending on the work progress:
5% reservation
5% foundations
15% ceiling
10% finishes
25% note
20% halfway house
15% internal partitions
5% delivery keys

The purchase takes place in France under French law, with precise laws provided for in the Civil Code, which determine no chance 'of interpretation the selling modus. This means great protection for the buyer,
thanks to a more developed real estate market which ensures the correct purchase.

By law all new construction must obtain a bank guarantee in order to be able to work make sales: in this way the bank protects the buyer that the construction is performed conforming to building permits and works to specifications provided, also in the case in which the company no longer had the financial capability to achieve it (failures, etc.), and the bank 'guarantor of the conclusion of the workings.

By law in the purchase under construction, the house must be guaranteed with insurance policies already 'welded by the manufacturer:
• 10 years for the construction of structural damage,
• 2 years on electrical and hydraulic systems,
• 1 year for small defects of construction and for visible defects and / or hidden,
• 6 months for soundproofing.

If the property is leased The notary verifies the lease to know the peculiarities (in particular the right of the tenant to remain in the occupied places, the right of first refusal, etc).
If you buy a property within a condominium, you are reviewing the building regulations as well as the minutes of the last meetings, and offers the knowledge of the exact purchase amount of the costs to be incurred, the nature of any deliberate work or any pending legal actions.
The layout of the private parties (without the annexes, cellar and garage) of at least 8 square meters of area, must be included in the pre contract and authentic act (Act of 18 December 1996).
If the property has less than 10 years, the notary shall require the vendor and the administrator, the status of the insurance policy "dommage ouvrage", its maturity and the procedures under way.


Preliminary agreement

At the conclusion of the preliminary purchase, you have a cooling off period of 7 days to confirm or cancel the purchase, from the day after the receipt of the registered letter in which it notified the draft act (Law Law of 13 December 2000 Article 72). It 'a law the non-professional buyer protection and, in case you decide not to buy more', you are entitled to a refund of the amount paid.
The preliminary contain all information necessary to the deed of purchase, and some said conditions "precedent", as it would for one of the parties, and for whom the condition was stipulated, they can withdraw from the transaction without having to suffer criminal of any kind.
The recent Loi MURCEF introduced to the buyer requires a mortgage real estate, a cooling off period of seven days from the loan offer is received (by registered) at your location.
The deed must be subjected to advertising foncière in order to be able to be appealed by third parties.

The price

Much attention should be made on the fairness of the price paid and declared in the deeds.
The price must be real and serious, even to the existence of precise rules of thumb:
Pre-emption Right "Droit De Preemption": the tax authorities and other government agencies (eg. The municipality where the property is situated) have, in many cases, the right of first refusal at the price stated in the preliminary sale. The seller may require the termination of the contract of sale, although signed with all the regularity ', when the lesion (ie the difference between the price paid and the actual value) exceeds 7/12. Such termination, which causes the retroactive annulment may be applied for within two years.


There are two local taxes:
the TAXE FONCIERE (property tax, along the Italian remakes IMU) and TAXE D'HABITATION (the council tax). They are connected to the cadastral value of the property ', and vary according to geographical area (tourist or not) and the value of the property. The rate is determined and communicated annually by the various local authorities.
- The TAXE D'HABITATION must be paid by the person who occupies the property on January 1st of the tax year (ie, the year in which the purchase takes place, the tax never competes to the buyer);
later it is not due only if the apartment is "vacant" (no space), so you have the state tax office periodically declare (if you rent, you have to instead declare the name of the tenant).
- The TAXE FONCIERE is paid by the seller.

The costs related to the purchase

Properties new or under construction.
The purchase of properties under construction or that have less than 5 years of life is subject to T.V.A. (Italian VAT) which is equal to 20% with no difference between first or second home.
Prices quoted at the time of sale are expressed TVA included and if so will prices TTC (toutes taxes comprises). In case of purchase of properties that enjoy tax exemptions to the purchase, the price will be shown net of VAT, namely HT (hors taxes) both in TTC. The cost of the notary is normally between 2.5 and 3.5% of the TTC price.
Properties with more than 5 years
In this case there is no longer the TVA but a registration fee and the total cost of the deed that varies between 7.5 and 8.5%. The variability is due to the incidence of fixed costs.

Capital gains tax

The main questions ...
I am a private, what are my obligations regarding the sale of a property in France?

If you own less than 30 years *, you will:
- Submit a declaration of capital gain even though need not pay any fee;
- Appoint a tax representative (? Signature your plusvalenza.Ne statement ensures esattezza.Si agrees to pay the tax and penalties in case of fiscale.Ha unlimited liability adjustment.) If the sale price exceeds € 150,000 and if you reside outside of the EEA ** (EEA):
- And pay the fee of 34.5% of the taxable capital gain (income tax rate of 19% + social withdrawals in the extent of 15.5%)
- And an extra fee if the taxable net gain exceeds € 50,000
Can I deduct the work carried out?
Yes :
For buildings constructed and held for more than five years, 15% of the purchase price without justification.
Only the work of (re) construction, expansion or improvements, made by a company, behind invoices and receipts for pagamentoa you made payable (restoration, maintenance and materials, the work already deducted: excluded).

All information is purely informative and does not determine the contractual agreement.

Write us