Buy Now Before Notarial Fees Increase!

By Jay Corless, edited by Adrian Leeds

On November 15th, the French government announced an upcoming increase in notarial taxes and fees—technically referred to as the “droits de mutation à titre onéreux” (DMTO), or transfer taxes.

While these are often called “notary fees,” it’s worth noting that most of these costs are taxes collected by the government, with only a small portion going to the Notaire for their professional services.

Chambre de Notaire in Paris

U.S. Notary: A state-appointed official who verifies the identity of signers, witnesses signatures, and administers oaths but has limited legal authority and does not provide legal advice.

French Notaire: A government-appointed legal professional with extensive training who drafts, authenticates, and enforces legally binding documents in areas such as real estate, family law, and inheritance. Learn more about the role of the Notaire on their website.

The notarial fees are paid by the buyer at the time of purchase and cannot be mortgaged—you must have the cash, so be prepared. Currently, these fees account for about 7% to 8% of the purchase price for resale (existing) properties and 2% to 3% for new-builds. The proposed change will raise the maximum DMTO rate by 0.5 percentage points, meaning fees for resale properties could climb to between 7.5% and 8.5%. For example, if you’re purchasing a property priced at 200,000€, this increase could result in an additional 1,000€ in fees. For a 300,000€ property, it would mean an extra 1,500€.

The government’s aim with this measure is to generate an additional 1 billion euro in revenue for local departments. These departments have experienced a significant drop in DMTO income due to fewer real estate transactions over the past two years.

When buying property in France, notary fees—known as the “frais de notaire”—are mandatory and include several components:

1. Taxes and Duties: These make up the majority of the fees, particularly the DMTO, which goes to local authorities.

2. Notary’s Professional Fee: A regulated amount for the notary’s services.

3. Administrative Costs: These cover registration and other necessary formalities.

These fees typically range from 7% to 8% of the purchase price for resale properties. At the same time, they are significantly lower for new construction, averaging 2% to 3%.

For example, on a 200,000€ purchase, fees for a resale property might range from 14,000€ to 16,000€, whereas a new build would likely incur fees closer to 4,000€ to 6,000€.

YOU HAVE UNTIL JUNE 2025!

The fee increase isn’t immediate, giving prospective buyers time to prepare. The new rates will take effect on June 1, 2025, as part of the 2025 Finance Act. This means buyers have a window of opportunity to finalize purchases before the higher fees come into play.

Historically, similar increases have led to a rush of transactions ahead of the deadline. In 2014, for instance, a previous DMTO adjustment caused a 26% spike in sales before implementation. If you’re already considering purchasing property in France, expediting your plans to avoid additional costs may be a good idea.

For anyone planning to buy property in France, this announcement is a reminder to budget carefully for the total costs of the transaction. If you can move forward with your purchase before the June 2025 deadline, you could save significantly on fees.

As always, a clear understanding of the process and accurate financial planning will make your purchase smoother—and more cost-effective. If you need assistance navigating these changes or finding the right property, we are here to help.

After all, there’s nothing like owning your own little corner of France!

A bientôt,