For those looking to purchase a home, particularly in the resale market, there is an important financial update to be aware of. Starting April 1, 2025, transfer duties, a significant part of the total acquisition costs often referred to as 'notary fees', will see an increase. Specifically, the departmental tax on property publicity and registration duties could rise from 4.5% to 5%, adding to the overall cost of buying property.
Impact of the Increase on Home Buyers
This adjustment is part of the 2025 financial law and is expected to last for three years, until March 2028. However, given the financial pressures on departmental budgets due to a decline in real estate transactions since 2023, this increase might become permanent. For home buyers, this means an additional cost of 500 euros for every 100,000 euros of property value. For instance, purchasing a 400,000-euro property would now incur an extra 2,000 euros in fees. To help with these calculations, the French notaries' real estate site offers an online fee calculator.
It's noteworthy that the maximum rates were previously increased from 3.8% to 4.5% in 2014, with most departments gradually adopting this hike. Currently, only Indre and Mayotte maintain the 3.8% rate.
Exemption for First-Time Buyers
First-time homebuyers are exempt from this increase. Additionally, they can receive financial support from family members, such as a tax-free gift of up to 100,000 euros from parents, grandparents, or even an uncle or aunt (if they have no children), with a total limit of 300,000 euros from up to three donors. This measure, effective for two years, complements existing allowances for direct line gifts (100,000 euros per parent, per child) and monetary gifts (31,865 euros) under specific age conditions.
Are You Affected by the Transfer Duty Increase?
Paris was the first to initiate this change, followed by departments like Côte d'Or, Ille-et-Vilaine, Charente-Maritime, Essonne, and Haute-Loire. More departments are expected to join this list soon.
Further Reading
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