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VAT on property


Over the years, the French legislation on VAT on property has considérabl¬ement complicated. Here's the gist of what to remember :

  • Acquisition of property: we must distinguish between new buildings old buildings :

    • 1. Old buildings
      Sales of buildings completed for more than 5 years are exempt from VAT

    • 2. New buildings
      Sales of buildings completed within the last 5 years are subject to VAT at 20%)

  • Acquisition of land to build: to determine the tax system, we must distinguish two cases :

    1. Transfers between individuals
      Only registration fees are due (5.09%, 5.80% worn in most departments), no VAT.

    2. The land sold by a professional
      Land sales by a VAT registered business are subject to VAT at 20%, the buyer is an individual or not. VAT is normally paid by the seller.
      If he had bought the land to a non-taxable person for VAT, the VAT will apply to margin and the buyer must pay 5.09% of registration fees currently charged at 5.80% in most departments.
      If the trader had purchased the land from a taxable person for VAT, the VAT will apply to the whole sale price. In return, the buyer will benefit from registration fees reduced to 0.715%.

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See also
Conseil du coin : meet a french notaire to a cafe !
French property market report / N°37
Marius Kohler nouveau president des notaires d'europe - Janvier 2018
New Presidency of the CNUE
French property market report of Notaires de France - January 2018
French property market report / N°38