From 1 st May 2016 notaires will be able to offer a discount on their fees. This is part of the Loi Macron supposedly aimed at making France more commercially competitive.
The main change for residential property (excluding new build) is summarised below.
Discount Only Applies to Notaires Fees
The discount only applies to the fee the notaire gets. Estate agents talk about “frais de notaire” which includes the taxes and registration fees which make up most of the costs.
These are not affected and there is no discount on them.
Notaires fees are calculated according to bands and are fixed by law. The rates have been reduced slightly from 1 st May 2016 and are set out below. Please note this does not relate to new build.
Percentage fees for each slice of the price of the property:
From €0 to €6,500 – 3,945%
From €6,500 to €17,000 – 1,627%
From €17,000 to €60,000 – 1,085%
Above €60,000 – 0,814%
New Rates – Example
As an example the fee for the purchase of a €200 000 property is:-
First €6 500 x 3,945% = €256,425
€17 000 € – 6 500 x 1,627% = €170,835
€60 000 – €17 000 x 1,085% = €466,55
€200 000 – €60 000 x 0,814% = €1,139.60
€256,425 + €170,835 + €466,55 + €1 139,6 = €2 033,41
The total notaires fee from 1st May 2016 is €2,033,41. This is very slightly cheaper than the Notaire fees applicable before the 1st May 2016 .
David Anderson, is a Solicitor Advocate, Chartered Tax Adviser, Barrister (Unregistered), Director and Co-founder of Sykes Anderson Perry Limited. He is qualified as a solicitor advocate and has higher rights of audience in all civil and criminal courts in England.
This article is for general information only. French tax and social security law are highly specialised areas and you should only act or refrain from acting after receiving full professional advice on the facts of your particular case.
Leave a reply
Your email address will not be published. Required fields are marked *