Real estate documents

The duties of a Notaire in France and a Notary in Monaco are not similar to those of many European lawyers, as the Notaire does not act in the interests of any of the parties to a transaction, but is an official representing the interests of the State who protects the interests of the buyer and seller. His function is to confirm that the transaction will be carried out in accordance with all the necessary administrative and legal rules and regulations, the Notary is obliged to give the transaction an absolute legality that cannot be challenged.

The seller and the buyer usually have each their own notary, the notary fee is not increased. For primary residence - preferential notary fee. The transaction is prepared by notaries, on whom the state assigns the responsibility of controlling the correct execution. Notaries check the legal purity of the property and are fully responsible for the results of this check. An important factor: French lawyers have introduced for individuals the so-called "seven-day cooling-off period" of the buyer to the object of purchase. Even after signing a preliminary contract, so that the housing was reserved and removed from the sale and, having made a 10% - per cent deposit (which is done simultaneously), during the following week the buyer can change his mind and refuse the chosen object. In this case, the previously paid deposit will be fully refunded to the buyer of the property.

We recommend that you consider the question of possible inheritance of the property you are buying. Seeking advice from your notary will help avoid difficulties in understanding the nuances of inheritance laws. There are ways to deal with these issues individually. If you wish to transfer the property to your heirs at a later date, you should take the necessary steps to do so before finalising the transaction.

The notary will tell you what documents you need to prepare and will take this issue into account at the final stage of the transaction.

Documents required for drawing up the contract at the notary's office: passport, birth certificate, marriage certificate, for the purchase of real estate in the name of a natural person.

For purchase on SCI - company documents or, if SCI is not yet ready and is in the process of creation, in this case it must be stated in the preliminary contract that the final purchase will be made on SCI.

All documents must be translated into French with an apostille.

To get started, you need to fill out a form with the buyer's personal data, which we provide to our buyers.

We deal individually with each order. We will find the right solutions and specialists for you, we will help you to solve issues related to process design, maintenance and management, we will organise meetings and support for you.

SCI - this flexible structure is ideal for long-term family investments. It has the same tax benefits as individuals and other additional advantages associated with owning a property in France or Monaco, the SCI must be set up before signing the final deed of sale on the company.

It is a contract between two or more individuals or legal entities for the purpose of optimising the management and use of the property.

Non-profit associations of persons, unlike commercial firms, have no obligation to distribute profits and shareholders can use the SCI property free of charge.

SCI status allows the ownership of immovable property by several persons and facilitates its transfer. This is an excellent solution that helps to avoid difficulties in case of disagreement of shareholders on the division of property, this issue will be solved by the manager of the company (there can be several of them). The company has a tax advantage on the transfer of shares relating to real estate where their value is taken into account. A deduction of probable debts is allowed to determine the value of the net asset, which will be the basis for calculating the right to inherit. The inheritance issue divides the shares, not the property. Current accounts are also exempt from inheritance rights.

Compared to a private acquisition, SCI allows the use of favourable value added taxes at the time of sale and there are other additional advantages of SCI: real estate cannot be transferred by shares, but in SCI it can be transferred partly by donation of shares or sale of shares. It is also possible to transfer shares between existing shareholders and this transaction is tax free.

The term of establishment of SCI is about 10 days from the moment of submission of the full set of documents:
- Photocopies of passport of each shareholder
- Copies of official documents on the marital status of each shareholder
- Bank details of the shareholders. Certificate of financial standing or recommendation from a banking institution
- Documents with the address of residence of the shareholders: receipt for payment of utility bills
- For foreign buyers:
- copy of the national passport
- Resident card of the country of residence and payment of income tax
- Articles of Association and certificate of registration of legal entities, founders of SCI
- Preliminary contract for the purchase of the property.
- The initial capital of the company is not fixed in amount and remains blocked on the account at the time of establishment of the legal entity.
- There are no restrictions on the forms of contribution and distribution of capital between the founders.
- The authorities oblige to meet the buyer in person to start the co-operation.
- All documents must be translated into French with an apostille.

We will provide a more detailed explanation and consideration of the individual case of each of our interested buyers.

We deal individually with each order. We will find the right solutions and specialists for you, we will help you to solve issues related to process design, maintenance and management, we will organise meetings and support for you.

We will help you to obtain the necessary expertise if required:

- Expertise of the valuation of the property, the conclusions of which are submitted to the bank to finance the purchase.
- Expertise diagnosis of the technical condition of the property.

Since 01.01.2007 for the transaction of sale and purchase of real estate must be carried out diagnostics for metrage, termites, asbestos and energy insulation, the conclusions of which are provided to the notary for the preparation of the contract of sale.

Brief information on French taxes

1.  Property tax (taxe fonciere) - Annual tax.
This tax is levied on property owners and depends on the location, type of property and its area. Commercial companies pay 3% of the cost of ownership. Properties managed by SCI are exempt from this tax when declared annually.

2.  Occupancy Tax (taxe d'habitation) - Annual tax
When the property is intended for your personal permanent residence with the address you list on your tax return, you do not have to pay this tax.

However, second homes and empty dwellings are still subject to this tax. Funds raised continue to support local government renovation projects.

3 Property tax (impot de solidarite sur la fortune - ISF) - An annual tax
This tax is payable by every individual whose capital in France (real estate and capital in the bank minus certain debts on Payments) exceeds €1,300,000 on 1 January of the current year.

4.  Capital gains tax (capital gains taxe. La "plus value")
This tax is paid on the profit on the resale of your property in France.

When you resell a property registered to an individual or SCI, which is your principal place of residence, no tax is payable.

5.  Inheritance tax (Droits de succession)
Unless international agreements provide otherwise, French tax law applies. Inheritance tax is progressive and can reach 40% on the highest tranche.

There is a non-taxable tranche deducted from each child's share. There is no tax on assets passing to the surviving spouse.

6.  Personal income tax (L'impôt sur le revenu des personnes physiques IR ou IRPP) - Annual tax.

Each year, at a time set by the Ministry of Budget, all taxpayers declare their income for the previous year. This tax is differentiated according to the amount of income and, if you have a family, the number of its members.
The interest rate varies from 0 to 45 per cent. Individuals residing permanently or temporarily in France pay tax on income earned in France. International bilateral tax treaties may exempt non-residents from income tax.

We will provide a more detailed explanation and consideration of the individual case of each of our interested buyers.

We deal individually with each order. We will find the right solutions and specialists for you, help you to solve questions related to process design, maintenance and management, organise meetings and support.

P.S. We will provide you with a detailed study of your case.