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Foreign National Requirements
Visa requirements
There is not particular requirement for visas. People from the EU can live where ever they want in the union which includes France. For people outside the EU they can have different kind of visas. The tourist one is granted for 90 days. It can be extended. The fact of owning a property is of a great help to obtain a longer one or a permanent one based on the fact that it would be difficult to forbid the access to your property. Nevertheless, IT IS NOT A RIGHT and the demand has to be granted.
Money in Bank
The law does not require a minimum in the bank, nevertheless, each bank has its criteria with sometimes a minimum to have, which should never exceed 3.000€.
OWNERSHIP
Properties are all acquired on "freehold" basis. This means that whatever is the property, you are always fully owning it. Some of the properties are dedicated to the leaseback system which implicates that the owner of the property renounces to have the use of it for 9, 10 or 11 years. In return, and depending on the lease terms, the owner can come for a limited time each year and on top of this he is entitled to get VAT refunded on the purchase price.
Costs of Purchase
The cost of purchase are divided into 3 categories notary fees (for the registration of the title deed and of course part of them for the fees of the notary), mortgage fees (for the registration of the mortgage deed, as it is on a separate deed) and legal fees (lawyers' fees)
*Notary fees : 2.5% for an off plan property and resales in a complex less than 5 years old and 7.5% for a resale in case of a property more than five years old. Those rates are approximate ones and it appears that the higher the purchase price of the property is, the lower (in term of percentage) the notary fees are:
*Mortage fees: 1% of the amount borrowed
*Legal fees: 1.25% in case of off plan properties and resales in a complex less than 5 years old and 1.25%+VAT for a resale in case of a property more than five years old.
Tax implications at closing of the sale of a purchase. The only mandatory tax is the 16% capital Gains Tax. This rate is valid for 5 years and than it decreases by 10% per year to reach 0 after 15 years. When a foreigner is selling it is sometimes mandatory to have a tax counselor for less than 1%.
Taxes
Some taxes apply to the owner and tenant of a property:
*Owner's tax: "taxe foncière", it is a yearly tax to be paid to the government. This tax is based on the size, location and quality of the real estate good. Only the tax office can estimate it for off plan properties and for resales, the amount is the same as the annual increase is most of the times very small. For off plan properties there is always a partial or total exemption for two years
*Living tax: a yearly tax to be paid to the local government. It is due by the tenant on the 1st of January and it's based partially on the type of real estate good, partially on the debts of the local government and partially on the income
*Income tax: it is 25% of the net income. It is calculated after deducting from the whole income: interest repayments of the mortgage, maintenance charges, owner's tax, any invoice in relation with the unit.
Maintenance
Are maintenance fees dues yearly or monthly? They are mostly due quarterly; it depends on the maintenance company
Deposits
Who holds the deposits for reservations and purchase? The transfer is made to the lawyer and then to the notary in charge who keeps it on his escrow account.
Stay
How long a Foreign National can stay in the Property or can live in the country? It depends on the VISA
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