Cafpi French Mortgage : Payment Other costs to face up to

Commonly referred to as notaire’s fees, there are a number of taxes and charges which the notaire collects, which are the “frais d’acquisition”. As well as the notaire’s own charges, which are subject to TVA, the notaire collects taxes on behalf of the French state and incurs charges both locally and at the registrar of Mortgages. For new build, the notaire’s total charges will be about 4% of the purchase price; for an existing property they will be around 8%. Eventually you will receive a detailed account of the frais d’acquisition, together with a refund or a request for the shortfall.
All properties must be insured from the date of ownership. Some lending banks offer building and contents insurance to borrowers.
Taxe foncière (land tax) The owner on the first day of January is liable for paying this tax, which is collected in the autumn.

Taxe d'habitation (local taxes) Once the property is furnished and has water and electricity it becomes “habitable”, however infrequently it is used. The tax varies by location, according to the size of the property and its facilities. As of 2005 television licence fees are now included in the taxe d’habitation.
Charges de Copropriétaires (maintenance charges) The maintenance of shared parts of a complex, such as an apartment block is paid for by the Copropriété, using funds raised from owners. Charges will vary according to the size and quality of the complex, whether there are lifts, caretaker, swimming pool, gardens, secure parking, etc. You should consider these charges before signing the Compromis de Vente. Ask to see previous years’ accounts and minutes of residents’ meetings to check that all is in good order.

Taxe de plus-values (capital gains tax) There is no capital gains tax incurred if you sell your main home to buy another. Capital gains tax applies when you are selling a secondary residence within 15 years of purchase. The tax is applied to the difference between the sale price and the original purchase price, taking into account any improvements for which valid receipts can be produced and the transaction costs. After a delayed start of 5 years, the tax is reduced by 10% a year.
The Notaire will calculate the tax due and take it out of the sale proceeds. ISF (Impôt de solidarité sur la fortune): Wealth tax affects those with assets over €732,000 (2005 rate) on 1st January and is calculated in bands above that figure. French residents and non-residents with assets in France are taxed on the basis of their assets as at 1st January each year.

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