Legal advices for foreigners in property purchase in France Paris Montmartre 18ème

In France, Notaires have exclusive authority for preparing and drafting  deeds of sale. Once you have chosen a property and agreed on the purchase price, you will typically be asked to sign a preliminary contract which may be drafted by an estate agent or by the notaire. You will also be required to pay a deposit, usually 10% of the purchase price. There is a mandatory cooling off period of ten  days during which the purchaser may withdraw. As part of the sale process, the seller is required to arrange for a number of inspection reports on the property The main reports currently produced relate to  : Asbestos , lead , termites , energy efficiency , environmental, mining and industrial risks , gas installations, electrical wiring, septic tanks. After the preliminary contract has been signed, the notaire will check : -that each contracting party is qualified and empowered to sell or purchase the property - that the seller has a valid title to the property - that the title of ownership does not contain any easements or restrictions, - that no mortgage or charges exist over the property and that all rights of pre- emption have been waived. After completion, the Notaire is responsible for having the title deed recorded at the Land Registry. Finally, consideration must be given at an early stage to who is going to purchase the property. The answer to this question will depend on the personal circumstances of the purchaser, the situation regarding inheritance taxes and the legal implications arising from the purchase.  Please feel free to contact Alexandra ETASSE before signing the preliminary contract to obtain further information and to analyse together what is the most suitable ownership arrangement for you in the purchase of a property in France

Alexandra Etasse, in charge of the International Department of Etasse et Associés will assist you in estate planning, since internationally it can be even more important than in a national context; to hand down your estate properly, it is necessary to plan and control how it is transferred. In addition, Alexandra Etasse will advise you on the best way to anticipate the sometimes complex problems related to the existence of foreign legal vehicles (for instance, trusts), international tax issues, or your desire to protect your spouse or your heirs. We will prepare the deeds of transfer of your property. 

We refer to an international estate when the inheritance has an international aspect. So there will be an international estate if the deceased held an asset in at least one country other than that of his nationality or residence, or if the deceased dies in a country other than that of his nationality or residence. 

          The application of social charges to capital gains realised by non-residents is currently the subject of a procedure against the French State. The French Council of State (“Conseil d’Etat”) has also referred a question to the ECJ for a preliminary ruling on whether these social charges can be levied on persons not benefiting from the scheme that these contributions are intended to fund. To date, the issue of the payment of social charges by non-residents is still not fully resolved. However, it would appear that the Direction générale des finances publiques (the French Department of Public Revenue) has communicated guidelines to its regional branches with a view to ensuring that the Land Registry Office and local tax offices should no longer require the payment of social charges in the situations covered by the ECJ case law of February 2015 and that of the Council of State of July 2015. It would therefore seem that in the current state of the law, sales of real estate undertaken by taxpayers from a social security scheme of another Member State of the EEA will not entail the payment of social charges. However, it is necessary for the taxpayer in question to provide evidence to their notary of their affiliation to a social security scheme in a foreign Member State of the EU or EEA, by means of either a social security card or a certificate of affiliation.

If the transferor is not resident in the EEA, and if the sale price of the real estate property exceeds EUR 150,000, a tax representative must be appointed, unless the property sold has been held for more than 30 years. This requirement applies even when there is no capital gain. The seller must foresee this requirement, as the appointment of a tax representative can generate an additional cost for him. We should comment that since 1 January 2015, this obligation to appoint a tax representative was removed for taxpayers resident in the EU and EEA (except for Liechtenstein) in regard to real estate capital gains for individuals

Alexandra ETASSE, in charge of the law firm's International Department, is a certified specialist of Private International Law Her dual training and professional experience, both in France and abroad, enables her to assist international clients, border residents, or clients residing outside of France, for the purchase, financing and estate planning. mortgages or financing, and any other subjects pertaining to legal and taxation aspects as regards real estate ownership. She also helps her clients find the most suitable way in which to acquire property in France and structure the financing and purchase of real estate in France. She mainly handles international cases, in particular for English-speaking clients or any other international clients, for the acquisition and sale of property in France, cross-border financing, loans carried out by foreign citizens, and any other issues pertaining to the legal and fiscal aspects of real estate. For all matters fitting into an international context and real estate transactions, or financing plans, the International Department of ETASSE et Associés law firm assists and advises its clients whether they be foreign, non-residents, border residents and expatriates or French people residing abroad. The International Department of ETASSE et Associes will assist you in any purchase or sale in France with an international aspect, be it that you are foreigners without a command of French, or French nationals abroad, or even in a cross-border situation. The International Department of ETASSE et Associes will take charge of drafting the compromis de vente (sales commitment) or promesse de vente (sales undertaking) and the final deed of sale while providing you with expert advice on Private International Law. We will give you guidance throughout your project so that it can be achieved with the greatest possible success. As soon as we receive the documents pertaining to your file, the International Department of ETASSE et Associes will carry out a comprehensive study in order to discuss with you all the questions that concern you regarding taxation (e.g.: advice on the ISF wealth tax and international taxation), real estate capital gains for non-residents, notary's fees, setting up financing in an international context, deciding on your matrimonial regime, estate planning, protection of the spouse and/or heirs. … Naturally, all the legal particularities occurring in your case will be analysed as will the specificities relating to any international considerations. The objective of Alexandra Etasse and of the International Department of ETASSE et Associes is to answer your questions, assist you in your purchase or sale project and to ensure complete legal certainty.