Buying Property Privately in France

What paperwork do I require to apply for an electricity supply to my building plot?

Suzanne — Tue, 29 Nov 2011 20:23:33 +0000

You will need to complete the application form provided by ERDF and decide which supply you would like – in most cases for an individual temporary supply it will be the first option “Branchement provisoire sur terrain nu => non fixe – if it is one individual supply the current price is 226,83€ TTC. You will also have to choose either to buy a box meeting current regulations or rent one from ERDF whilst you still require your temporary supply. If you rent < 36kVA it will cost 17,94€ TTC per month.

I find it best to send a copy of your Cadastral plan clearly outlining the plot, together with a “Plan de situation” or map showing where the property is and an idea of your project “Note descriptive succincte du projet”. Please go to this link and download the form.

If you need help filling in the form or have any further questions please let me know.

We want to give notice to the tenants in our house in France because we want to move in as soon as possible having sold our house in the UK. How do we do this?

Suzanne — Tue, 25 Oct 2011 19:02:35 +0000

You haven’t said whether you have an Agency managing your property rental in France. Normally you can only give notice 2 ½ years after the start of your 3 year contract to indicate that you will not be renewing the lease. In France, according to article L613-3 of the “Code de la construction et de l’habitation”, you are not allowed to evict the tenant between 1st November and 15th March.

However, there are exceptions to this winter break, the expulsion remains possible:

If you propose decent alternative accommodation to the tenant and his family,

or if the premises are the deemed unfit for occupation,

or if the people occupying the property entered illegally.

In case of unpaid rent and charges, after seeking an amicable settlement with the tenant, the landlord may request the termination of the lease authorizing the eviction of the tenant.

Please email me if you need more help or information.

I’ve a sizeable investment maturing soon in UK, which I would like sending to my French bank. What is the best way to do this?

Suzanne — Fri, 14 Oct 2011 18:37:33 +0000

Thank you for your question Annabel.

I would highly recommend that you speak to First Rate FX (click link on this page). They offer a fantastic service with excellent rates and will talk you through all of the options of moving your money, depending on your timescale.

They are usually about 4% more competitive than a normal bank transfer, which can amount to a huge saving. I hope this answers your question.

Can you tell me where the new pylon route planned for Normandy is going?

Suzanne — Fri, 07 Oct 2011 12:08:39 +0000

Work on the new pylon route is due to start in September 2011, according to the RTE (company responsible for the infrastructure). Please download this plan and see the communes affected.

I have heard a rumour that the French capital gains tax rules are changing – please can you clarify?

Suzanne — Wed, 21 Sep 2011 16:53:07 +0000

Unfortunately you have heard correctly! The new rules are coming into effect from 1^st February 2012. As a non-resident you will have a CGT liability if there is a gain until 30 years of ownership (formerly 15) where you will become exempt. The rate is currently 19% for non-residents EU citizens and 33% for SCI companies and non-EU residents. There is no reduction in the first 5 years of ownership; 2% between the 6^th and 16^th year; 4% between the 17^th and 25^th year and 8% after that.

There are various reductions allowable, depending on your circumstances.

If you are selling your property for under 150 000€ net vendeur (to you) it is your Notaire who will calculate and regularise your CGT liability (you may be charged up to approx.. 150€ for this). If you are selling for over 150 000€ net vendeur (to you) the Notaire is obliged to forward your file to a Government Department called SARF who will calculate your CGT liability (even if you have made a loss) and charge you 1% of your property sale price to provide the service. This fee can sometimes be negotiated slightly especially if it is obvious that there is no gain.

Be aware that the Notaire will deduct Capital Gains Tax, and any other outstanding taxes, from your sale price before you get the balance.

For more specific enquiries please do not hesitate to contact me.

I have been told that I must put down a 10% deposit after I sign the Compromis de Vente for the house I am buying. The trouble is that all my money is tied up in the sale of my house (also in France). What can I do?

Suzanne — Wed, 21 Sep 2011 12:10:13 +0000

More and more people buying property in France do not have a deposit to put down at the time they sign the Compromis de Vente (initial sales contract) and it is not a problem. You can still sign the Compromis without handing over a deposit at all. Do, however, make sure that the Notaire acting for you “ties” the two sales up together so that you have a clause inserted into the Clauses suspensives (suspensive clauses) stating that your purchase is dependent on the sale of your existing property – you will need to provide a copy of the Compromis de Vente for your sale so that he can write in the details.

I have heard that when I complete the sale of my bungalow the insurance policy has to be taken over by the buyers, is this true?

Suzanne — Wed, 21 Sep 2011 11:57:29 +0000

On the day that you sign the Acte de Vente and complete on the sale of your bungalow the Notaire will ask for your insurance details. The Notaire will give you a copy of an “attestation” (proof of sale) which you need to send to your insurance company, quoting your policy number, to stop your insurance. You may be entitled to a rebate. Your buyer will be asked to provide proof that they have taken out an insurance policy – this is compulsory where they are buying with a mortgage). If, for some reason, they have not insured your house they do have a 30 day period in which to arrange some insurance.

Some purchasers may prefer to continue with the present owners’ insurance policy, especially if there has been any claim ie. For subsidence.

If you need help with arranging insurance, please ask.

When is the best time to open a French Bank Account?

Suzanne — Wed, 21 Sep 2011 11:56:03 +0000

I would recommend that, where possible, you wait until you have found the property you want to buy and then go into a local branch of a Bank to open an account. You may not be seen straight away and need to make an appointment.

You will need to go in person, take your 3 last bank statements, proof of income, a copy of your passport (or proof of identity with a photograph) and a copy of your most recent utility bills (preferably EDF). Make sure that the account you are offered includes the services you require, ie. Internet banking. If you are only opening one account the” compte courant” (current account) is probably the best, although there are other options for people requiring savings accounts.

There are several banks who offer non-resident accounts and some banks offer specific English-speaking services such as Crédit Agricole Britline.

If you need help with opening a French bank account, please ask.