Actualité - Buying in France as a non-resident or expatriate: the complete guide

Buying property in France from abroad is entirely possible, but it requires anticipating specific constraints relating to financing, taxation and administrative procedures. French banks examine non-resident applications with greater caution, which translates into a higher personal contribution and sometimes an increased interest rate. This guide details the key steps to secure a purchase remotely, from structuring the financing through to signing at the notary's office.

Key points

French banks generally require a personal contribution of 20 to 30% for a non-resident, compared with 10% for a French tax resident.
A French tax number, a local bank account and, outside the European Union, a tax representative are often necessary depending on the situation.
A notarial power of attorney allows the deed of sale to be signed without being physically present in France on the day of signing.
French taxation applies to rental income, to capital gains in the event of resale and, beyond a certain level of wealth, to the IFI (real estate wealth tax).

The specific features of financing for a non-resident buyer

The first obstacle encountered by an expatriate or a non-resident wishing to buy in France concerns obtaining a mortgage loan. French banks consider that non-resident borrowers present an additional risk, linked in particular to the difficulty of recovery in the event of default and to the complexity of analysing income earned abroad. This perceived risk translates concretely into stricter lending conditions.

A larger personal contribution

Whereas a French tax resident can sometimes borrow with a contribution limited to 10% of the price of the property, banking establishments most often ask non-residents for a contribution of between 20% and 30%. Certain banks specialised in the expatriate clientele may go below this threshold, but this remains the exception rather than the rule.

Sometimes increased rates and a more demanding application file

The interest rate offered may also be slightly higher than that granted to a resident, to compensate for the additional risk. The financing file must also include solid supporting documents: tax notices from the country of residence, translated employment contracts, bank statements covering several months, and sometimes a certificate from the employer. It is recommended to approach several establishments, including banks with departments dedicated to non-residents, and to compare offers via a specialised broker if necessary.

The administrative steps prior to the purchase

Beyond financing, several administrative formalities condition the smooth running of a property purchase in France for a person domiciled abroad.

The French tax number

Every purchaser, whether resident or not, must have a reference tax number (SPI) issued by the French tax administration. This number is essential for paying property tax, declaring any rental income, or declaring capital gains on a future resale.

Opening a French bank account

Although not systematically compulsory, a bank account in France greatly facilitates the management of the property: payment of co-ownership charges, property tax, works or rent received. Some online banks and neobanks have simplified account opening for non-residents, avoiding administrative back-and-forth.

The tax representative for buyers outside the European Union

For non-residents domiciled outside the European Union or the European Economic Area, the appointment of an accredited tax representative is generally required upon resale of the property, in order to guarantee payment of capital gains tax to the French administration. This representative may be a banking establishment, a specialised company or, in some cases, the notary in charge of the transaction.

The role of the notary and the remote purchase procedure

The notary is a central player in any property transaction in France, and their role takes on a particular dimension when the purchaser resides abroad.

The power of attorney: signing without being present

You do not need to be physically present in France to sign the preliminary sales agreement (compromis de vente) or the deed of sale (acte authentique). The buyer can grant power of attorney to a trusted third party, or more commonly to a clerk at the notary's office, who will sign on their behalf on the scheduled day. The power of attorney document must be drawn up, signed and sometimes legalised or apostilled depending on the country of residence, then sent back to the notary's office before the signing date.

Digital exchanges

Most exchanges with the notary (sending supporting documents, reviewing the draft deed, questions about the surveys/diagnostics) can now be carried out electronically. This considerably simplifies the purchasing process for an expatriate, provided that delays linked to time zones and the postal delivery of original documents, where necessary, are anticipated.

Taxation applicable to non-resident property owners in France

Owning a property in France as a non-resident entails specific tax obligations that should be anticipated before purchasing.

Rental income: if the property is let out, the rental income received is taxable in France, generally at a minimum rate applicable to non-residents, with the possibility of deducting certain expenses depending on the chosen tax regime.
Capital gains: in the event of resale, the capital gain realised is subject to income tax and social security contributions, with progressive allowances linked to the length of time the property has been held.
Impôt sur la Fortune Immobilière (Real Estate Wealth Tax, IFI): non-residents whose real estate assets located in France exceed the legal threshold may be liable for the IFI, calculated solely on the properties held in France.
Property tax (taxe foncière) and housing tax (taxe d'habitation): these local taxes apply in the same way as they do to French residents, regardless of the owner's country of tax residence.

The bilateral tax treaties signed between France and numerous countries often make it possible to avoid double taxation, but their application depends on the buyer's country of residence. Support from a tax specialist or a notary specialised in international law is strongly recommended to secure this aspect.

Securing a remote purchase with local support

Buying a property without being able to travel easily represents a significant logistical and psychological challenge. This is where local support really comes into its own. An Optimhome property consultant based in the targeted area can organise filmed or video-conference viewings, verify the actual condition of the property, negotiate the terms of sale and coordinate exchanges with the notary, the letting management agency or tradespeople in the event of works.

Even before starting the search, it is useful to have a precise idea of the prices prevailing on the targeted market. A free online property valuation makes it possible to quickly compare several properties or geographical areas and refine one's budget before starting the financing process. To explore the opportunities currently available, the Optimhome property listings offer a broad view of properties for sale throughout France, accessible from any country.

Conclusion

Buying in France from abroad requires more rigorous preparation than a standard purchase, particularly in terms of financing, tax procedures and remote coordination with the various parties involved. A larger down payment, obtaining a tax number, potentially opening a French bank account and, for certain profiles, appointing a tax representative are all steps to anticipate from the very start of the project.

Relying on experienced professionals, a notary, a broker and a local property consultant, helps streamline each step and limit the risks linked to distance. With suitable organisation and the right contacts, buying a property in France remains accessible and secure for any non-resident or expatriate, whatever their country of residence.

FAQ

Can a non-resident obtain a mortgage loan in France?

Yes, this is possible, but the conditions are stricter than for a French tax resident. A down payment of 20 to 30% of the property price is generally required, along with a solid income file, possibly with the help of a specialised broker.

Is it mandatory to open a bank account in France?

It is not always a legal obligation, but it is strongly recommended in order to easily manage the payment of charges, property tax and any rent received. Several online banks now make it easier for non-residents to open an account.

Can you buy a property without travelling to France?

Yes, thanks to the notarial power of attorney, it is possible to sign the preliminary contract and then the deed of sale without being physically present. The document must be prepared and sometimes legalised depending on the buyer's country of residence.

What is a tax representative and when is it mandatory?

The tax representative is an accredited person or organisation responsible for guaranteeing payment of capital gains tax to the French authorities. It is generally required upon resale for non-residents domiciled outside the European Union or the European Economic Area.

Are rental income received in France taxed even when residing abroad?

Yes, property income from a property located in France is taxable in France, regardless of the owner's country of residence. The tax rate and reporting procedures depend on the tax regime chosen and any applicable bilateral tax treaties.

How can viewings and property selection be secured remotely?

Using a local property consultant makes it possible to organise thorough viewings, filmed or via video conference, and to check the actual condition of the property before making any commitment. This support limits unpleasant surprises and facilitates coordination with the notary through to the final signing.