Real Estate Law France 2025 | Purchase, Sale, Commercial Lease

Real Estate in France

French real estate law has important particularities, notably the central role of the notary and the system of mandatory technical diagnostics. The distinction between new property (VAT) and existing property (transfer duties) significantly impacts acquisition costs.

All real estate transactions must go through a notary for the authentic deed. The system of compromis de vente (sales agreement) followed by the final deed is the norm.

Acquisition Costs by Property Type

Property Type	Transfer Duties	VAT	Total Notary Fees
Existing	~5.81%	-	~7-8%
New (VEFA)	~0.7%	20% (included)	~2-3%
Building land	~5.81%	-	~7-8%

The Property Purchase Process

Purchase offer - Written offer with price, conditions, validity period.
Preliminary contract - Promesse or compromis de vente with conditions precedent (loan, planning). 5-10% deposit.
Withdrawal period - 10 days (SRU law) for non-professional buyer.
Conditions period - Loan approval, planning checks (2-3 months).
Authentic deed - At notary, generally 2-3 months after compromis. Balance payment.
Publication and key handover - Notary publishes at land registry. Property transfer.

French Commercial Lease (3-6-9)

Commercial leases are governed by the bail commercial statute (articles L.145-1 et seq. Commercial Code), offering significant protection to commercial tenants.

Aspect	Rule
Minimum duration	9 years (3-6-9 lease)
Rent revision	Annual indexation (ILC or ILAT), triennial revision possible
Tenant termination	At each triennial period (3, 6, 9 years) with 6 months notice
Landlord termination	Only at end of lease (9 years), limited grounds
Right to renewal	Commercial property (propriété commerciale): renewal right or eviction indemnity
Eviction indemnity	Generally 2 years rent + moving costs
Lease assignment	Possible with business sale (solidarity clause common)

Residential Lease

Unfurnished (Law of July 6, 1989)

Duration: 3 years (6 years if corporate landlord)
Security deposit: Max 1 month rent excluding charges
Tenant notice: 3 months (1 month in tight areas, job transfer, job loss)
Landlord notice: 6 months before lease end, limited grounds (repossession, sale, legitimate reason)
Rent revision: Annual per IRL (if clause)

Furnished

Duration: 1 year (9 months for students, non-renewable)
Security deposit: Max 2 months rent
Tenant notice: 1 month
Mandatory equipment: Regulatory list of 11 minimum items

Rent Control

Applicable in Paris, Lyon, Lille, Bordeaux, Montpellier and other voluntary cities. Rent cannot exceed the capped reference rent set by prefectural decree.

Mandatory Technical Diagnostics (DDT)

DPE: Energy performance, classes A to G, mandatory in listings
Asbestos diagnosis: Mandatory for properties built before July 1997
Lead diagnosis (CREP): Mandatory for properties built before 1949
Electrical diagnosis: If installation > 15 years
Gas diagnosis: If installation > 15 years
Risk statement (ERP): Natural, mining, technological risks
Carrez measurement: Private area mandatory in co-ownership
Termite diagnosis: According to areas defined by prefectural decree

Real Estate Investment

French real estate is attractive to investors:

No restriction: Non-residents can freely acquire property
Rental yield: 3-5% gross on average in major cities
Capital gains: 19% + social levies (17.2%), progressive allowance, full exemption after 22 years (income tax) and 30 years (social levies)
Rental income: Real regime or micro-foncier (<€15,000), 30% allowance
SCPI: Indirect real estate investment, ~4-5% yield
Tax incentives: Pinel (new rental), Denormandie (renovated old), Malraux (heritage)

Frequently Asked Questions

What are the notary fees in France?

Notary fees include: transfer duties (~5.8% of price), notary emoluments (~1% regressive), miscellaneous costs (~0.5%). Total for existing property: ~7-8% of price. For new property: ~2-3% (no transfer duties on VAT portion). Notary fees are regulated by decree.

How does a real estate sale work in France?

Steps: 1) Accepted purchase offer, 2) Preliminary contract (promesse or compromis de vente), 5-10% deposit, 3) 10-day withdrawal period (SRU), 4) Period to fulfill conditions precedent (loan, planning), 5) Authentic deed at notary (2-3 months after), 6) Balance payment and key handover.

What are the rules for commercial leases in France?

French commercial lease (bail commercial) has a minimum 9-year duration (3-6-9 lease). Tenant can give notice at each triennial period (6 months notice). Landlord can only recover at end of lease except for serious grounds. Tenant has right to renewal or eviction indemnity (often 2 years rent). Rent: annual indexation (ILC or ILAT).

What are the residential lease rules in France?

Unfurnished: 3-year duration (6 years if corporate landlord), 3-month tenant notice (1 month in tight housing areas), max 1-month deposit. Furnished: 1-year duration (9 months for students), 1-month notice, max 2-month deposit. Rent control in Paris, Lyon, Lille and other tight areas. Guarantor accepted.

What is the DPE and mandatory diagnostics?

The DDT (Technical Diagnostic File) includes: DPE (energy performance, mandatory since 2006), asbestos diagnosis (pre-1997), lead diagnosis (pre-1949), electrical/gas diagnosis (>15 years), natural risks statement (ERP), Carrez measurement (co-ownership). DPE rates the property A to G and must appear in listings.

What are the notary fees for a property purchase?

Notary fees = transfer duties (5.81% average) + notary emoluments (regulated regressive tariff) + formality fees and disbursements (~€1,500). Total: ~7-8% for existing property, ~2-3% for new (VAT already included in price). Buyer can freely choose the notary.

Can a foreigner buy property in France?

Yes, without any restriction. Foreigners (EU or non-EU) can freely acquire property in France (residential, commercial, land). No visa or residence required. Note: rental income is taxable in France (tax treaty). Capital gains taxed at 19% + social levies (main residence exemption).

How does co-ownership work in France?

Co-ownership is governed by the law of July 10, 1965. Each co-owner holds a private lot + shares of common areas. General meeting decides at different majorities (art. 24, 25, 26). Syndic manages day-to-day operations. Co-ownership regulations and descriptive statement define the rules. Charges: general and special according to equipment.