Buying a property in france may cost more from april as ‘notaire fees’ allowed to rise

DEPARTMENTS CAN OPT TO INCREASE FEES BY 0.5% UNDER 2025 BUDGET Notaire fees charged for a property purchase are set to rise for many from April 1 as part of the new budget. Departments will

have the option to increase the fees by 0.5%, reaching a maximum of 5% (compared to the current 4.5% cap). This increased cap can be put in place between April 1, 2025 and March 2028, giving

departments ample time to raise the fees.  There will be some exceptions however, with first-time buyers exempt from the increase (but not the current fees) provided the property is their

main home. In areas where the fees are raised, the cost of the fees will increase €500 for every €100,000 spent on the property purchase. For example, the notaire fees (typically 7-8%) on a

€300,000 home will rise to around €24,000 from current levels of €22,500, an increase of €1,500. Officially, the rule change will be subject to the 2025 budget passing, however this is now

all but certain to happen after it was passed by the Senate and forced through the Assemblée nationale without a vote (but without a vote of no confidence toppling the government).  Read

more: French budget is forced through parliament: how could it impact your finances WHAT ARE NOTAIRE FEES? The fees – officially called droits de mutation à titre onéreux (DMTO) – form the

major part of the so-called ‘notaire fees’ paid on all home purchases once the acte authentique d’achat is signed.  Despite their name, the droits de mutation are not retained by the notaire

conducting the property sale but are passed to the local authorities, and are a key stream of local funding for departments.  The increase in fees is one of the methods the government is

looking to use to plug a funding deficit in local spending, alongside calling on councils to find budget cuts.  The ability to increase notaire fees is reportedly a concession from the

government to local authorities.  The increase in fees was originally included in ex-prime minister Michel Barnier’s 2025 budget before this was scrapped. However, the amount of money local

governments are being asked to find via budget cuts – around €2.2 billion – is significantly lower in the budget of current prime minister François Bayrou than under Mr Barnier. MOST

DEPARTMENTS LIKELY TO INCREASE FEES As the funding from the tax goes to local authorities, it is up to each individual department if they wish to raise the fees, and when.  However, it is

considered probable that most areas will increase the taxes.  Paris has already confirmed it will implement the fees, with more departments expected to follow.  “We are obliged to use this

tax, under constraint, to finance the state deficit,” said Paris’ deputy mayor of finances Paul Simondon (quoted in BFMTV).  “We need this increase in DMTOs, it is the only way to cope,”

said François Sauvadet, president of the Assemblée des départements de France. Read more: Five key points on French property market in latest notaire review