Property moguls reminded about notaire fees when investing in France

Before making an international money transfer and purchasing a second-home in France, individuals may want to consider one expert's advice.

Niclas Dowlatshahi, managing director at Leapfrog-properties.com, explained how there are a number of legal aspects people should think about first.

He noted although there are no particular restrictions stopping individuals from buying in the country, there are several complicated legal issues investors will not experience in the UK.

Mr Dowlatshahi commented how people will be subject to notaire fees, which are roughly three per cent for new builds and seven to eight per cent for resale properties that are more than five years old.

In addition, it was described by the expert how inheritance rules in the nation are different to those in Britain.

Even if the homeowner is a UK citizen, the French regulations will apply as the abode is in France, Mr Dowlatshahi remarked.

"There are many different ways of buying a property in France with different inheritance tax implications, so for this you should either speak to an experienced notaire or take inheritance advice from a tax advisor specialising in French tax law," the specialist advised.

Editor at FrenchEntree.com Justin Postlethwaite recently recommended having an English solicitor handle the sale with the notaire so as to ensure all the clauses and agreements are thoroughly reviewed.

"You should not sign the contract unless and until it has been reviewed on your behalf and has been explained to you," he stated.

Mr Postlethwaite also described how the completion date specified in the documents is not fixed like in the UK and is merely an indication of the likely time when the paperwork will be finished.

As a result, investors may have to be patient when attempting to secure a home in France.

Posted by Sarah Pitton

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