If you’re looking to purchase property abroad, and you’re looking at somewhere with the perfect blend of scenic beauty, culture and sun, France is a fantastic location. Whether you’re drawn to the sophistication of Paris, the sun-drenched beaches of the Côte d’Azur, or the rustic charm of the French countryside, buying property in France can be an appealing investment. However, the process is different to the UK, and there are a few important factors to consider, including the cost of buying a property in France, tax considerations, and currency exchange options. Read on to learn more about buying a property in France as a foreigner.
Why buy property in France?
You won’t need us to tell you about the fantastic appeal of buying a property in France. Just a stone’s throw away from England, owning a French property gives you the opportunity to have a perfect home away from home – without having to travel across the globe to get there.
France is well known for its relaxing quality of life, famed for its “slow living”, rich culture and diverse landscapes. This makes it an ideal place for Brits looking to relocate, retire, or simply spend part of the year. Popular regions like Paris, Provence, and Bordeaux each offer their own unique charm, and investment properties in France are often seen as a smart way to diversify assets.
Understanding the cost of buying a property in France
Before you decide to buy a property in France, it’s essential to understand the overall costs involved. Beyond the purchase price, there are additional expenses to consider. When buying a house in France, fees such as notary fees, taxes, and legal costs can account for around 7-8% of the property’s price for older homes, while the cost might be lower for new builds.
The cost of buying a property in France also includes annual property taxes, such as Taxe Foncière (a tax paid by the property owner) and Taxe d’Habitation (paid by the resident, whether owner or tenant). These taxes can vary significantly depending on the size and location of the property.
How complex is the process?
According to Statista, there were over 145,000 British expats living in France in 2017 so it’s clearly a popular destination if you’re considering emigrating or looking for a second home.
Despite the changes brought about by Brexit, buying a property in France remains a viable and appealing option. Although the process has changed slightly, British nationals still have the freedom to purchase homes in France. However, it’s important to be aware of how new rules might affect long-term stays, tax considerations, and property purchase procedures.
Financing your property purchase from the UK
For UK buyers, financing a property purchase in France involves navigating a foreign mortgage system. French banks do offer mortgages to non-residents, but the application process can be different from the UK. You’ll need to provide proof of income, tax returns, and often a larger deposit of at least 20-30%. Interest rates in France may vastly vary, so it’s worth comparing offers from multiple lenders.
At FCP, we can support and advise you through the overseas property purchasing to ensure that you secure the best rate of exchange through either forward contracts or another type of currency transfer service that best suits your needs.
Managing currency exchange when buying property in France
One of the biggest financial challenges for UK buyers is dealing with currency exchange. Exchange rate volatility can have a significant impact on the cost of buying a property in France from the UK. A small change in the exchange rate between GBP and EUR can increase or decrease the price by thousands, affecting your overall budget.
How FCP can assist UK buyers
Buying property abroad, especially from the UK post-Brexit, requires careful financial planning. At Financial Currency Partners, we specialise in helping UK buyers manage the complexities of currency exchange when buying a property in France. This ensures you get the best rate of exchange.
If you’re considering buying and owning property in France, contact us today.
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