When you are considering to buy real estate in France there are many things you need to consider. Check out the following:
One
French Real Estate Prices are Not Rising at this time BUT
Even if French real estate property prices are not rising you need to consider the impact of a French property purchase and how it fits into your long term financial, legal and tax planning. Best get professional legal advice from a English speaking French tax lawyer. Do not rely on your French real estate agent to help you. We can place you in contact with an English speaking French tax advisor or lawyer. Contact us here
Two
Rent Property before you Buy in France
Visit the area in France you want to invest in several time before you invest. Maybe do a short term rental of a house like what you envision you want to buy and get a feel for what it may be like for you to live in the town. Go shopping, do cloth washing, act like the locals, work on the language. Learn what it is you are really looking for maybe you will be charmed or disappointed.
Three
To Live or To Rent
Is your French real estate investment for you to live in most of the year or just partially and rent out the rest of the year. Will it be easy to rent out? Different areas in each town may rent better or worse than others. Will you get any return on your investment? It is important to know the purpose of your purchase.
Four
Know Your Residential Status
Your country of origin and its relationship to France will impact how often you can stay in France and how easy it will be for you, if you want to become a resident. Seek advice so you know all the details before planning a purchase. You may be restricted on how often you can be in France
Five
Investigate your Medical Insurance and its validity in France
If you are not to become a French resident and therefore unable to participate in the local government sponsored medical insurance system you need to find out what medical insurance will cover you. You need to know its cost as well. It could be hundreds of dollars per month.
Six
Know your Taxes
If you are a foreign owner of French real estate you will most likely be taxable for the property. If you rent out the property as of the time of the writing of this article the rules are you will be taxed on the income. If the property you buy is expensive you may be hit by the French wealth tax and if you are a French resident you may be taxed on your global wealth. Make sure you know what you are going to encounter before you buy your dream French property. All we can say is get quality legal and tax advise.
Seven
French Inheritance or Estate Issues
In France the rules of inheritance at the current time need to be understood by you. You may think that if you die your spouse will inherit the property when in fact depending on your situation your children may / will automatic participate in the inheritance. Apparently, we have heard that in France the more children you have the less your spouse will inherit so may sure you know the structure of how your property is legally held in France right from day one of ownership
Eight
French Finance Considerations
Make sure you know how the way you are buying your French property benefits you financially and tax wise. Could you be able to offset taxes by buying with a mortgage? Will your mortgage be set up to pay in Euros or the currency of your home country?
These eight points are just an introduction. Do not use only them as a basis for an informed decision. Use them as a beginning point. We want to make sure you consider all your options before buying your dream property in France.
Note:
We can help you contact an English speaking French lawyer or mortgage broker.
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Once your are settled on the general area or region you want to buy in France we can help you find an English speaking French agent go to this page
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