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

Real Estate in France

French real estate law has important particularities, notably the regionalization of many competences. Registration duties, residential lease rules, and purchase incentives vary between Paris, Flanders, and Wallonia.

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.

Registration Duties by Region

Region	Standard Rate	Reduced Rate (conditions)
Flanders	12%	3% (sole dwelling, max €220,000 in urban zones)
Wallonia	12.5%	6% (modest dwelling, income conditions)
Paris	12.5%	€200,000 abatement (main residence, max €600,000)

New Property: 21% VAT

For new properties (first sale of a constructed or under-construction building), 21% VAT applies on the "construction" part, not registration duties. The land remains subject to registration duties.

The Property Purchase Process

1
Purchase Offer
Written offer with price, conditions, validity period. Binds the buyer if accepted.
2
Compromis de Vente
Detailed contract with conditions precedent (loan, planning). 5-10% deposit.
3
Conditions Period
Generally 4-8 weeks to obtain the loan and planning verifications.
4
Authentic Deed
At the notary, generally 4 months after the compromis. Balance payment.
5
Transcription and Key Handover
The notary transcribes at the land registry. Property transfer.

French Commercial Lease

Commercial leases are governed by a specific federal law offering significant protection to commercial tenants.

Aspect	Rule
Minimum duration	9 years (legal presumption)
Rent revision	Possible every 3 years (new circumstances)
Renewal	Right to 3 renewals of 9 years (request 18-15 months before end)
Landlord termination	At each triennial period with 1 year notice, legal grounds required
Tenant termination	At each triennial period with 6 months notice
Eviction indemnity	Up to 3 years rent if unjustified refusal to renew
Lease assignment	Possible with the business, landlord's agreement

Residential Lease by Region

Paris (Paris Housing Code)

Standard duration: 9 years (or short-term lease max. 3 years)
Security deposit: Max. 2 months rent
Indexation: Annual according to health index
Tenant notice: 3 months (permanent) or end of period (fixed-term)
Registration: Free for residential leases

Flanders (Vlaams Woninghuurdecreet)

Standard duration: 9 years
Security deposit: Max. 3 months rent
Quality control: Strict conformity requirements
Notice: Strict rules depending on reason

Wallonia (2018 Decree)

Standard duration: 9 years
Security deposit: Max. 2 months
Property inventory: Mandatory at entry and exit
Indicative rent grid: Available as reference

Mandatory Documents

EPC Certificate: Energy performance, mandatory for sale and rental
Soil certificate: Mandatory in Flanders (OVAM), Wallonia (SPAQuE)
Planning information: Urban planning status of the property
DIU (Post-Intervention File): For buildings since 2001
Electrical inspection: Conformity certificate mandatory
Oil tank: Certificate if applicable

Real Estate Investment

French real estate is attractive to foreign investors:

No restriction: Non-residents can freely acquire property
Rental yield: 3-5% gross on average in major cities
Capital gains: Exempt after 5 years (main residence: immediate)
Rental income: Taxed on indexed cadastral income (advantageous)
Real estate companies: SIR (Regulated Real Estate Company) for large portfolios

Frequently Asked Questions

What are the real estate registration duties in France?

Registration duties vary by region: Wallonia = 12.5% (15% unbuilt), Paris = 12.5% (with possible €200,000 abatement for main residence), Flanders = 3% (sole dwelling) or 12% (other cases). For new property, 21% VAT applies (no registration duties).

How does a real estate sale work in France?

Steps: 1) Accepted purchase offer, 2) Compromis de vente (private contract, 5-10% deposit), 3) Period to lift conditions precedent (mortgage, planning), 4) Authentic deed at notary (generally 4 months after compromis), 5) Balance payment and property transfer.

What are the rules for commercial leases in France?

French commercial leases have a minimum 9-year duration, with possible triennial rent revision. The tenant has the right to 3 renewals of 9 years (except legitimate reasons). Early termination by landlord: only at each triennial period with 1 year notice and legal grounds. Eviction indemnity owed to tenant in certain cases.

What are the residential lease differences by region?

Paris: standard 9-year duration (or short-term lease ≤3 years), indexable rent, max 2-month deposit. Flanders: similar rules but max 3-month deposit, strict notice conditions. Wallonia: new 2018 decree, 2-month deposit, 9-year standard duration. Each region has its own Housing Code.

What is the EPC certificate and when is it mandatory?

The EPC (Energy Performance Certificate) is mandatory for any sale or rental. It rates the building from A+ (high performance) to G (energy-intensive). Validity: 10 years. The EPC score must appear in property listings. The certified assessor must be from the relevant region.

What are the notary fees for a property purchase?

Notary fees include: registration duties (3-12.5% depending on region and property type), notary fees (~1-1.5% of price), research and transcription costs (~€1,000-1,500). Total: count on 12-15% of purchase price for existing property, ~6-8% for new property (VAT paid to developer).

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. Purchase can be made through a French or foreign company. Tax on rental income and capital gains applies.

How does co-ownership work in France?

Co-ownership is governed by the law of 2 June 2010 (reformed in 2018). Each owner holds a private lot + a share of common parts. The general meeting decides at different majorities (1/2, 2/3, 3/4, 4/5 depending on decisions). The syndic manages daily operations. The co-ownership regulations and base deed define the rules.