Buying a ski property in France FAQs

What are the buying options in France?

• Second Home: In France, you can purchase a property as a second home without any obligation to rent it out (unless it is specifically stated as part of the ski resort regulations, called the mountain law (Loi Montagne). This allows for personal use throughout the year and almost all properties in France are freehold.
• Main residence: You can live all year round and make your ski property your main residence. However, if you live for more than six months a year in France, you become a French tax resident. Some exceptions with properties classified as tourist residence.
• Fully Managed: Many developments in popular ski areas offer fully managed services. This often involves a management company handling all aspects of renting out your property, including marketing, bookings, maintenance, and providing regular income returns.
• Flexible Renting: For those who seek flexibility, properties in France often provide options to self-manage rentals or use local management services. You can rent out your property independently through various online platforms or choose full-service rental management.

Can EU Citizens buy property in France?

• Yes, EU citizens have the right to buy property anywhere in France including in the French Alps. The process is generally straightforward and facilitated by a notary public. We offer the services of an English-speaking notary free of charge, contact us for more info.

Can non-EU citizens buy property in France?

• Non-EU citizens can purchase property in France. Unlike other countries, France does not restrict property purchases based on nationality. However, non-EU buyers may need to complete additional paperwork and might be subject to financial scrutiny. This is, however, usually not the case. British clients are considered like EU in most cases.

What is the purchase process for buying property in France?

• The French property buying process involves several steps, including signing a preliminary agreement (compromis de vente), paying a deposit, and completing the purchase with the help of a notary who handles the legal formalities. When you buy off-plan, you start making payments only when the financial guarantee is in place (GFA), which needs to be subscribed by the developer to guarantee the full completion.
• With new-builds in France, you pay in stages according to the construction advancement until delivery. Main stages are foundation (30), watertight or roof stage (70%).

What are the purchase costs when buying property in France?

• Purchasing property in France involves several fees, including notary fees (approximately 7-8% of the property price), stamp duty and registration taxes. For new-build ski properties, this is reduced to 2-3% of the property amount. If you take out a French mortgage, there is an extra 1% in duties to pay.

What construction guarantees are there?

• In France, new builds come with a ten-year warranty covering any significant defects or structural issues. Developers also provide a two-year warranty on internal elements like doors and windows.

Can a foreigner get a mortgage to buy property in France?

• Yes, non-residents can secure mortgages for French properties. French banks may lend up to 70-80% of the property value to qualified buyers, with loan terms usually up to 25 years.

What are the benefits for EU citizens of buying a property in France in the name of a company?

• Purchasing through a company can facilitate shared ownership and potentially offer tax benefits, particularly in terms of inheritance and wealth tax planning. It can, however, be more costly to run.

How much can I expect to receive in rental income?

• Rental income varies widely depending on the location and quality of the property. As with most prime locations (French Alps is one, with prices often equivalent to Paris prices), yield is never the main motivation, however you can offset the property’s yearly costs and generate some income to spend when you stay in your property. When you buy a ski property it is really about the lifestyle and potentially the capital gains.

What are the annual running costs of owning a French ski property?

• Running costs include local taxes, maintenance, utility charges, and management fees if you opt for professional rental management. These costs can vary significantly based on property size and location. You can expect to pay around 7€/m2 per month of living surface comprising the service charges + utilities + tax. Increase this to 10€ for a residence with reception, staff and swimming pool/Spa.

Do I have to rent my French property?

• There is no obligation to rent out your French ski property unless it is located in a tourist residence with specific rental commitments or if the ski resort is part of the “Loi Montagne” (obligation to rent for at least 10 years, often 20 years).

What annual taxes will I have to pay?

• Property owners in France are subject to local taxes (taxe foncière and taxe d’habitation), income tax on rental earnings, and VAT on rental income under certain conditions. Local taxes are about 4-5€/m2/month (a 50m2 property will be under 3,000€/year).

What capital gains and inheritance taxes apply?

• France has a capital gains tax on property sales, with rates depending on the length of ownership (usually reduced to nil after 22 years. Inheritance laws and taxes can be complex, especially for non-residents, so it’s advisable to seek expert legal advice.

These FAQs are tailored to provide a foundational understanding for those interested in buying a ski property in France. For more detailed information, contact us.