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PROPERTY

Property in France: A weekly roundup of the latest news and talking points

Whether you're contemplating taking a step on the French property ladder or are already here and need help with renovations, stay up to date with The Local's guide to the latest news around French property.

Property in France: A weekly roundup of the latest news and talking points
Photo: Philippe Huguen/AFP

‘The new Saint-Tropez’

It’s a long way from the Mediterranean, but for its fans, the redeveloped marina at Port-Cergy has all the benefits of living on the Côte d’Azur, without the eye-watering price tag.

Situated in Val d’Oise in the greater Paris area, the small town on the river has a wetlands area with a marina that offers apartments with stunning views.

“When I arrived here, I felt like I was in Saint-Tropez,” enthused one resident to French newspaper Le Parisien.

Ok, you wont benefit from the sunny climate of the Mediterranean, but average rent for marina apartments is around €3,500 a month, compared to nearly double that in Saint-Tropez.

And the same architect worked on the marina at Port-Cergy and Saint-Tropez, so there is a similar feel to some of the development. 

Escape to the country

The big trend in French property right now is flight from the cities.

Real estate agents in 2020 reported a 12 percent increase (from 2019) of purchases in rural areas as the pandemic prompts people to rethink their lifestyles.

The rise of remote working means that many employees can be more flexible around where they live, and families who faced lockdown in tiny city apartments have decided to move out to a property in the country with a garden.

There are even early indications that the famously expensive property market in Paris is beginning to cool – prices haven’t actually fallen, but their increase slowed throughout 2020.

Internet connections

If you are planning to work from home, however, you will almost certainly need a good internet connection.

This is not something that can be assumed in France, especially in rural areas, so unless you want a very stressful working life of swearing at your computer, check what the connection is like before you buy property.

You can check the government map HERE to see what connection speeds are available.

READ ALSO Readers reveal: What internet connections in rural France are really like

Renovation grants

If you’ve already bought your dream home and are starting a renovation project, you might be able to get help with the costs.

From July 1st 2021, a French government grant scheme for making your home more energy efficient has been extended. With grants available of up to €20,000, this now applies to both second homes and main residences

Rent control

If you’re renting rather than buying – or if you’re buying with a view to becoming a landlord – you might want to know that rent control schemes are being extended in France.

Local authorities in Paris and Lille already operate rent control systems (with mixed success in Paris, as anyone who has recently tried to find affordably priced rental accommodation will know) but from September this is being extended to other areas.

The Paris suburb communes of Aubervilliers, La Courneuve, Épinay-sur-Seine, L’Île-Saint-Denis, Pierrefitte-sur-Seine, Saint-Denis, Saint-Ouen-sur-Seine, Stains and Villetaneuse will have this in place in September and it seems likely that other areas, both within the greater Paris region and outside, will follow suit in the months and years to come.

Property law in France is quite heavily weighted in favour of the tenant – read more about tenants’ rights and landlords’ responsibilities HERE.

Dream homes

If you’re on a salary of around €41 million per year – or you just enjoy scrolling through beautiful properties and daydreaming – check out this list of suggested new homes that a French property supplement has put together for Paris-Saint-Germain’s new star signing, Lionel Messi.

Property tip of the week

The notaire fee is a frequently-misunderstood part of the process of buying property in France.

Engaging the services of a notaire is not optional, because the transfer of the property to new ownership cannot be completed without the services of a registered notaire, however the notaire themselves only takes a small proportion of the confusingly named ‘notaire fee’ – the majority of it goes to the government so it’s really a property tax, similar to stamp duty if you are buying in the UK.

 The fee can run to tens of thousands of euros, however, so you need to factor this in to your purchase costs. You can find out more about how it works, plus a calculator to work out how much you will need to pay, HERE.

For more news and information on French property, head to our Property section, while if you’re contemplating a move to France you can find lots of practical help on the Moving to France page.

Member comments

  1. Anyone equating Cergy to St Tropez is either partaking in illegal substances, or has never personally visited at least 1 of the 2.

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PROPERTY

French property: What is buying ‘en tontine’?

If you're buying property in France, you might be thinking about buying 'en tontine' - this has advantages especially when it comes to France's strict inheritance laws, but can also have tax implications.

French property: What is buying 'en tontine'?

What is it?

The ‘clause de tontine’ sometimes also known as a ‘clause d’accroissement’ is a clause that is inserted into the property deeds when you are buying a house or apartment.

It can only be inserted during the purchase, and cannot be added later.

It’s basically a ‘group purchase’. It’s most commonly used by unmarried couples who are buying together but it can be used by larger groups too – for example a group of friends buying a holiday home together.

You will have to ask a notaire to draw up the tontine clause during the property purchase and it can only be used if 

  • the parties are equally involved in the financing of the purchase
  • the parties involved have a roughly equal life expectancy (for this reason tontine clauses may be rejected if there is a significant difference in age between the purchasers)

What’s the point of it?

The main reason that people use it is to sidestep France’s strict inheritance laws, which assign that a certain portion of every estate must go to children, at the expense of a partner. 

READ ALSO How France’s strict inheritance laws work

For this reason it is particularly used by couples who have children from previous relationships.

On a property with a tontine clause in effect, when one owner dies their share of the property passes in its entirely to the other member/members of the tontine.

This cuts out children from inheritance, but means that a surviving partner is not evicted from their home in favour of the children of the deceased. 

It also has the advantage of making the intentions of the deceased clear, to avoid arguments among heirs after their death.

It should be noted, however, that the tontine clause only takes in the property that it covers – other assets may be subject to French inheritance law so it’s therefore probably wise to arrange a will, to ensure your wishes for your estate are met.

The surviving party can ask a notaire to update the property deeds to show that they are the sole owner, if they want. Be aware there will be a fee, which could reach four figures for the privilege – and it doesn’t actually involve any change to the property title.

Drawbacks

The advantages of the system are clear, especially for blended families, but there are some potential drawbacks too, which mean that anyone considering buying in this way would be well advised to take proper legal advice before they start.

Inheritance tax – while a tontine will help you to avoid restrictions on inheritance, it does not exempt you from inheritance tax. French inheritance tax is structured according to your relationship to the deceased, and people who are neither married nor related to the deceased pay an eye-watering inheritance tax rate of 60 percent.

The only exception to this top rate of inheritance tax is if the property is your main residence and it is valued at under €76,000 – in that case, tax is paid at a rate of 5.8 percent.

Married couples and family members pay a much lower rate or not tax, but if you’re not married to your tontine co-purchaser, be careful that you’re not lining yourself up for a massive tax bill in future years.

Wealth tax – depending on the value of the property, it could tip you over into the ‘wealth tax’ category when you inherit. France’s wealth tax is a real estate based tax and is levied on anyone who has real estate assets (property and land) worth €1.3 million or more.

The calculation includes property held en tontine.

Tax savings – you might hear tontines being advised as a way to limit your French tax liability.

While this used to be true, changes to tax laws means there are no no significant tax advantages to buying this way – the same is true for buying a property via an SCI, which used to represent a tax saving until the law was tightened up.

Disinheriting family membersOne side effect of the tontine clause on mixed families is to effectively disinherit any children of the first person to die.

Because the property passed to the survivor, under French law, only their direct descendants – rather than any family by marriage – are entitled to automatic inheritance.

That means that the children of the surviving partner will be entitled to the statutory share of the entire asset (between 25 and 30 percent depending on the number of children), but the children of the first person to die will be entitled to nothing. Obviously you can choose to leave them something in your will, but you can only leave them some or all of the estate which is not automatically given to the children on the survivor.

Divorce/dispute – if the members of the tontine split up or (in the case of friends) fall out, then they can either sell the whole property or agree to buy each other out.

However, if one party refuses to sell, then you have very limited legal options – unlike a standard property purchase a tontine is not regarded as joint ownership, so one partner cannot be forced to sell as part of a divorce procedings, for example.

Basically the tontine can only be ended or changed with the agreement of all parties – so if you can’t agree between yourselves then you may be stuck with it.

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