Taxes and fees on the purchase
The buyer should normally expect to pay fees and taxes of about 6.5-7.5% of the purchase price. These break down roughly as follows:
- Land Registry taxes (known as TPF – Taxes de publicité foncière) of approximately 5.1%
- Miscellaneous expenses – calculated according to various documents that the notaire must search and examine in order to draft the deed of sale.They usually amount to less than €700.
- The notaire’s own service fee, set at 0.825% for properties over €16,800. The fee is subject to VAT (value added tax) of 19.60%. If each party is represented by their own notaire, that fee is split between the two.
Finalizing the property purchase
Just before the signing of the final purchase agreement, the notaire will send the buyer a completion statement showing the balance of the purchase price and all other fees and taxes required to complete the purchase. The buyer will need to get those funds into the notaire’s escrow account in time for the date fixed for the signing of the deed of sale, the acte de vente.
The buyer can either be physically present to sign the acte de vente, or arrangements can be made for a Power of Attorney to enable another person to sign on the buyer’s behalf.
When the acte de vente has been signed, the notaire distributes the funds to the respective parties: the purchase price to the seller, the taxes to the state, fees and charges owed to the building management, commissions to the real estate brokers, and keeps the amount of his own fee.