DESPITE the weak state of the housing market, buying property is now more expensive in many areas of France after department councils voted to increase their droits de mutation, a major part of the frais de notaire. It will mean about €700 in extra costs for the buyer for every €100,000 paid.
The extra money was agreed in the 2014 finance law to compensate councils (conseil généraux) for cuts in government funding. It sees droits de mutation rise 0.7%, from 3.8% to 4.5% of the sale price.
This, along with the 0.4% rise in VAT on the notaire’s émolument [their portion of the fee] in January, will mean fees for house purchases now average around 8-9% on top of the price paid.
Many banks do not allow the frais de notaire to be included in a property purchase loan so it is more important to have a larger deposit saved.
The measure lasts until February 29, 2016. Only a handful of councils – Isère, Mayenne, Morbihan, Paris, Yvelines and Vienne – have decided not to apply it.
Most councils brought the new fee into force on March 1 but some, such as Calvados, Charente, Manche, Savoie, Vendée and Haut- Vienne, have delayed it until April 1.
About a dozen departments including Bouches-du-Rhône, Loire-Atlantique and Seine-Maritime delayed a decision on any possible rise until after last month’s local council elections.
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