Buying a property in France from the European Union: tax, financing, inheritance, visas
Germans, Dutch, Italians, Spaniards, Scandinavians: residents of other EU countries form a major share of foreign buyers in France, drawn by the climate, heritage and quality of life, everywhere in the country. EU resident status opens a simplified framework: no tax representative imposed on resale, possible exemption from social levies and free movement with no stay limit. Residents of the European Economic Area (Norway, Iceland, Liechtenstein) enjoy the same advantages. Two parameters do vary by country: the applicable tax treaty and the currency, the euro avoiding any exchange for the euro area but not for non-euro countries.
By Jean Mascla, founder of Home SelectUpdated · 6 min read
The purchase process seen from the European Union
The French notaire secures the sale and title. Many EU countries share a Latin-tradition notariat, which makes the path clear.
What changes for you
A single notaire authenticates the sale and registers title, a framework close to that of many EU countries.
The preliminary contract binds the parties, with a ten day cooling off period for the buyer, before the final deed.
For the euro area, payment is made without conversion; non-euro countries must manage an exchange.
Points to watch
The deposit (5 to 10 % of the price) is paid at the compromis stage, into the notaire’s escrow account.
A notarised power of attorney lets you sign remotely if needed.
Financing and paying from the European Union
EU status eases financing; currency exchange only concerns residents of non-euro countries.
What changes for you
French banks lend to EU residents, with a deposit often close to that of a resident.
For the euro area, no currency risk; for non-euro countries, the exchange remains to be managed.
A specialist broker can compare a French offer with one from your country.
Points to watch
If you reside outside the euro area, lock your exchange rate.
Compare a French loan with financing in your country.
Tax while you own
Your French rental income is taxed in France; the treaty with your country prevents double taxation.
What changes for you
French source rental income is taxed in France, with a minimum 20 % rate for non-residents, unless a lower average rate is shown.
Above 1.3 million euros of net French real estate, the property wealth tax (IFI) applies.
The tax treaty between France and your country sets the method for eliminating double taxation.
Points to watch
Property tax is owed each year; a second home may also incur a residence tax.
Each treaty has its specifics: check the one for your country.
Resale: a lighter regime
As an EU resident, you do not need to appoint a tax representative, which lightens the resale.
What changes for you
Non-resident capital gains are taxed at 19 %, plus social levies, with allowances for the length of ownership.
As an EU or EEA resident, you are exempt from an accredited tax representative, unlike residents outside those areas.
Full exemption is reached after 22 years for income tax and 30 years for social levies.
Points to watch
Keep renovation invoices: they reduce the taxable gain.
Check your length of ownership: it strongly changes the final tax.
Lyon, Rhône-Alpes
Social levies: the European exemption
Affiliated to your EU country’s social security, you may be exempt from CSG and CRDS and pay only a reduced levy.
What changes for you
In principle, rental income and gains bear 17.2 % of social levies.
A person affiliated to another EU or EEA state’s social security, and not a charge on the French scheme, is exempt from CSG and CRDS.
In that case, only the 7.5 % solidarity levy remains due.
Points to watch
The exemption depends on your actual affiliation: keep your proof.
The gap between 17.2 % and 7.5 % is significant on recurring rental income.
Inheritance: choosing your national law
The French asset falls by default under French law, but the EU regulation lets you choose your national law.
What changes for you
By default, property in France falls under French law, which reserves a share for children.
The EU succession regulation lets you choose your national law by will.
Taxation at death depends on any treaty between France and your country, which does not exist with all.
Points to watch
The choice of law is set in a will: it is not presumed.
Without an estate treaty, anticipate the risk of double taxation.
Stays: free movement
As an EU or EEA citizen, you move and stay freely in France, with no time limit or visa.
What changes for you
Free movement exempts you from any stay limit or visa.
You can occupy your home for as long as you wish.
Making France your main home may make you a French tax resident.
Points to watch
Beyond a few months, registration formalities may apply.
Switching to French tax residence changes your overall taxation.
Structuring ownership
An SCI, joint ownership and split ownership organise holding and transfer; their effects must be checked against your country’s taxation.
What changes for you
The SCI organises joint holding and the gradual transfer of shares.
Its tax treatment varies by the partners’ country of residence: it is checked before incorporation.
Splitting ownership remains a common tool to prepare transfer.
Points to watch
Do not form an SCI without validating its tax treatment in your country.
The choice of ownership form is made before the purchase.
Frequently asked questions
Does EU status really change anything?
Yes: no tax representative imposed on resale, possible exemption from social levies and free movement with no stay limit. It is a markedly simpler framework than non-EU status.
Will I have to manage a currency exchange?
Not if you reside in the euro area. For non-euro EU countries, an exchange remains to be managed on the purchase and flows.
How do I find the rules specific to my country?
The tax treaty between France and your country sets the specifics. We point you to a partner tax lawyer to analyse it.
What if I live in Norway, Iceland or Liechtenstein?
These countries form the European Economic Area: you enjoy the same favourable framework as EU residents, namely no tax representative, possible exemption from social levies and free movement.
How is the capital gain taxed if I resell while living in the European Union?
As an EU resident, you do not need to appoint a tax representative, which lightens the resale.
Which social levies apply to a resident in the European Union?
Affiliated to your EU country’s social security, you may be exempt from CSG and CRDS and pay only a reduced levy.
Can I borrow in France while living in the European Union?
EU status eases financing; currency exchange only concerns residents of non-euro countries.
How long can I stay in my French property?
As an EU or EEA citizen, you move and stay freely in France, with no time limit or visa.
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60 rue François 1er, 75008 Paris · FCI member
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