Financing and paying
When a purchase is funded from abroad, attention goes to the currency provider, the rate and the fees. The real lock is often elsewhere, and it is not French: it is the regulation of the country the money leaves from. This dossier says what it covers, what to ask your bank, and how to build it into the purchase calendar.
By Jean Mascla, founder of Home Select Updated · 6 min read
The whole set of rules governing capital leaving a country: annual caps per person, prior authorisation from a central bank, mandatory filing above a threshold, evidence of the purpose of the transfer, or an obligation to go through an approved institution.
These rules vary enormously. Some countries have none. Others only apply them to large amounts. Others again govern every outflow strictly, with processing times measured in weeks.
Because it appears in no French document. The preliminary contract, the notaire’s list, the currency provider’s quote: none of them asks whether your country allows you to send the sum. The French system assumes the question settled.
So it surfaces when the transfer is attempted, which is precisely when there is no room left. It is one of the few difficulties of a French purchase that nobody in France will flag to you.
Only one counterpart matters at the start: your local bank, the one that will execute the transfer. Put four questions to them, in writing, and keep the answer.
What cap applies to a transfer of this nature. What authorisation or filing is required beyond it. What processing time to allow, from lodging the file to the transfer actually leaving. And what supporting documents they expect, particularly on the purpose of the transfer.
That last question has an unexpected virtue: the documents a bank asks for to let the money out overlap heavily with those the French notaire will ask for to receive it. The same file does double duty, which is the subject of the source of funds.
Vannes, Bretagne
By moving the most binding date. In an ordinary purchase, the critical date is the deed. Here it becomes the authorisation to send, because everything else depends on it.
The practical consequence is read in the preliminary contract. The period between signing the contract and signing the deed is negotiable, and a buyer subject to an authorisation procedure is better off asking for a wider window than hoping it will go quickly. A long-stop date met beats an ambitious one missed, especially with a deposit at stake.
That applies more still to a purchase where the timetable is not negotiable at all, such as an auction: there, an authorisation period that runs past the deposit date is fatal, and you need to know it before instructing a lawyer.
Three routes exist, and none of them involves splitting transfers to stay under a threshold.
Spreading over time, where the cap is annual and the timetable allows, with funds held meanwhile in a dedicated account.
Partial financing in France, which reduces the amount to be sent out: that is often the decisive argument in favour of a French mortgage, beyond the question of the rate alone.
The authorisation procedure, simply, where one exists and the project justifies it. It is slow, it is documented, and it works.
What the three have in common is that they are decided before signing anything. Which is why this subject, which is not French, nonetheless belongs to the first week of a plan to buy in France.
Financing is prepared before the search. From the first meeting, your Home Select property finder puts you in touch with a broker used to non-residents, so that your offer arrives financed and the bank’s calendar fits within that of the preliminary contract.
Bank, currency, paperwork: we introduce the partners who handle these subjects every week, and we make sure the bank, the notaire and the currency provider receive the same documents. Each acts under their own responsibility; our role is that nothing is missing on the day the money must move.
No, there is no exchange control on the way in: capital moves freely. What France requires is traceability, through the due diligence obligations of the bank and the notaire. Being able to receive is one thing, being able to document is another, and it is the second that takes work.
No, and it is the worst idea in the file. Splitting designed to stay below a reporting threshold is a red flag in almost every system, and it turns a lawful operation into a suspicious one. It destroys exactly what you will need next: a clear, documented story.
Not in detail, but the time it takes must be reflected in the agreed timetable. A buyer who asks for a slightly longer period and explains it by a known constraint is more reassuring than one who promises a date they will not meet. It is a matter of credibility, not of confidentiality.
The whole set of rules governing capital leaving a country: annual caps per person, prior authorisation from a central bank, mandatory filing above a threshold, evidence of the purpose of the transfer, or an obligation to go through an approved institution.
Because it appears in no French document. The preliminary contract, the notaire’s list, the currency provider’s quote: none of them asks whether your country allows you to send the sum. The French system assumes the question settled.
Only one counterpart matters at the start: your local bank, the one that will execute the transfer. Put four questions to them, in writing, and keep the answer. What cap applies to a transfer of this nature. What authorisation or filing is required beyond it. What processing time to allow, from lodging the file to the transfer actually leaving. And what supporting documents they expect, particularly on the purpose of the transfer.
By moving the most binding date. In an ordinary purchase, the critical date is the deed. Here it becomes the authorisation to send, because everything else depends on it. The practical consequence is read in the preliminary contract. The period between signing the contract and signing the deed is negotiable, and a buyer subject to an authorisation procedure is better off asking for a wider window than hoping it will go quickly. A long-stop date met beats an ambitious one missed, especially with a deposit at stake.
Three routes exist, and none of them involves splitting transfers to stay under a threshold. Spreading over time, where the cap is annual and the timetable allows, with funds held meanwhile in a dedicated account.
Further reading
Preparing a purchase in France from abroad, or already an owner there? Describe your situation: a Home Select property finder answers within one working day, and the file starts with the right partners, in the right order.
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