Investing in French real estate

Investing in French real estate

Historically, France has been a stable place to invest in and with property prices across the country continuing to rise, investing in French real estate is an attractive option. Low interest rates on mortgages making French property more affordable, and increased demand are what has driven up prices and there doesn’t seem to be any signs of this changing.

In fact, long-term property prices are forecast to increase 10% each year, so a healthy return on investment can be expected.

There is no restriction on foreign nationals buying property in France so for high net worth individuals France can be a lucrative location in which to invest. Whether you are looking for the cosmopolitan lifestyle of Paris, or relaxed atmosphere of the French Riviera, France is a popular choice for investment. Not to mention its political and economic stability are a big draw.

France offers investors a lucrative leaseback scheme, with net rental yields of 7-10%, guaranteeing rental income and tax incentives. This coupled with comparatively low property prices to elsewhere in Europe, makes it a financially sound location in which to invest.

However, when buying a property in France, there are a number of tax considerations to be aware of. Foreign nationals who directly or indirectly own property in France are subject to an annual tax equating to 3% of the property’s fair market value. Stamp duty is also applicable but is fairly small and capital gains tax (CGT) on housing has recently been cut to 16% and holders of property for longer than 15 years are entirely exempt. Furthermore, the double tax treaty between the UK and France means that UK buyers in France will not pay tax twice.

France has one of biggest tourist industries in the world, so investors can benefit from its trade, as well as its modern transportation infrastructure and nearby access to the UK and other European countries. We can’t forget its world class cuisine and wine either.

Whatever the reason you are investing in France, our multilingual team of mortgage brokers can help with every step of the buying process. Our extensive network of international lenders and partnerships with tax specialist enable us to help with all of your French property financing requirements. Read more about French mortgages for UK residents.