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Can a Foreigner Buy Property in Paris ?

Updated: Nov 22, 2024


YES, a foreigner can certainly purchase property in France.


View of the Eiffel Tower from a balcony


French law does not restrict property ownership to national citizens. Therefore, whether you are a citizen of the European area, an American citizen or a national of (almost) any other countries around the world, you can purchase real estate in France.



In real estate matters, the law governing the property’s location applies, meaning French law. Consequently, foreign investors will be subject to the French tax regime for rental income and capital gains, as well as to French property rules.


However, it’s important to note that these provisions do not apply in matters of inheritance. In the event of death, the property is not governed by French law; instead, the law of the deceased's last place of residence applies for calculating inheritance rights. Foreign investors can opt to apply their national law under certain conditions through a will.


🥐 Financing Your Purchase as a Foreigner


Knowing how you will finance your purchase should be on top of your "to do" list. Obtaining a mortgage in France as a foreigner living abroad can be challenging. French banks are often cautious with borrowers living abroad due to the added risk.


In France, lenders place significant importance on place of residence, income, personal contribution, and collateral. It's essential to check your eligibility before seeking a loan.

For foreigners living abroad, the required personal contribution is typically higher than for nationals, often ranging from 20% to 40% of the total project budget.


Finding a bank that is willing to lend to foreign real estate investors can be complex, as many online banks do not offer this option. However, some major banking institutions in France do provide loans to non-resident foreigners. Given these challenges in obtaining a loan as a foreign investor, it is advisable to work with a mortgage broker to assist you through this process.


From the onset, I walk my clients through the financing process (and much more).


🥐 Fund Transfers to France from Abroad

As a potential buyer, keep in mind that acquiring real estate in France often involves significant fund transfers. These transfers are closely monitored by intermediaries like banks and credit institutions.


French notaries are required to verify the source of your funds to prevent money laundering. If they have any concerns about the origin of your funds, they must report it (TRACFIN).



Parisian balcony


🥐 Do Foreigners Owning Property Have Easier Access to Enter France?


Owning property in France does not grant any special rights for entering the country. Consular authorities reviewing your application have the discretion to assess your request as they see fit. However, having real estate may be viewed favorably when evaluating the material conditions for your stay in France. In fact, the list of documents required by the consulate includes proof of property ownership in the section regarding accommodation (such as a certificate of accommodation, hotel reservation, or deed of ownership).


🥐 Do Foreigners Owning Property in France Have the Right to Reside There?


There are no legal provisions that automatically grant a residence permit to foreigners who own property in France. However, when applying for residency based on other grounds (such as work, study, or other reasons), owning property can be an important factor in the evaluation process. It generally indicates that the foreigner has thoughtfully prepared their relocation plan.


For example, in the case of an application to reside as a "visitor" or "merchant/entrepreneur/craftsman/liberal professional," the property you own may reduce the requirements regarding financial resources and could positively impact your application.


Additionally, being a property owner is highly favorable when applying for a 10-year resident card or for naturalization. Generally speaking, ownership translates to greater purchasing power, which indicates sufficient means of existence.


In summary, purchasing property in France does not guarantee the right to enter or settle in the country, but it is a relevant factor in the evaluation process.




To Conclude: Investing in real estate in France as a non-resident offers numerous opportunities but also presents specific challenges. Understanding French laws and regulations, as well as the available tax options, is essential for success in this environment.



 


Happy property hunting, and may your French real estate journey be as smooth as a buttery croissant! 🥐 🇫🇷



As always, I love to read your comments and answer your questions.




Christine Bacoup-Tidas - Tomette Paris®




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Tomette Paris® is a Registered Trademark in France. INPI certificate number 24 5023079 dated 21 January, 2024.




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