Real Estate Investment in France for Foreign Investors
To invest in French real estate, pick a holding structure (direct, SCI or SAS/OPCI) that fits your tax position, budget for notaire fees and transfer taxes, run legal and technical due diligence, and factor in the tenant-protective lease rules before you commit.
France is a prime destination for real estate capital, but acquisition costs, tax and tenant protections differ sharply from other markets. This guide walks foreign investors through structuring, costs and the due diligence that protects the deal.
Steps to Invest in French Real Estate
| Step | What to Do | Why It Matters |
| 1. Choose a structure | Direct, SCI, SAS or OPCI/SPPICAV | Drives tax and succession |
| 2. Sign the preliminary | Promesse or compromis de vente | Locks the deal, sets conditions |
| 3. Run due diligence | Title, planning, technical surveys | Reveals hidden liabilities |
| 4. Plan the tax | Transfer tax, VAT, income, wealth | Costs shift the return |
| 5. Close before a notaire | Notarised deed (acte authentique) | Transfers legal title |
| 6. Manage the asset | Leases, charges, compliance | Protects ongoing yield |
What Structure Should a Foreign Investor Use?
The right holding vehicle depends on your goals and tax residence.
- Direct ownership: simplest, but exposes you personally and offers less planning flexibility.
- SCI (société civile immobilière): popular for holding and passing on property, with flexible governance and succession planning.
- SAS / commercial company: suits income-producing or trading assets.
- OPCI / SPPICAV: regulated vehicles for larger or institutional investment.
What Are the Real Costs of Buying?
Acquisition costs in France are significant. Expect notaire fees and transfer taxes (droits de mutation) of roughly 7–8% of the price on existing property (this figure is mostly made up of transfer duties collected by the notaire on behalf of the State and local authorities, not the notaire’s own fee), lower for new-build (subject to VAT instead). Add agency fees, structuring costs and, for financed deals, mortgage registration costs. Model the all-in cost, not just the headline price.
What Does Due Diligence Cover?
- Title and ownership history, plus any mortgages or easements.
- Urban planning, permits and zoning (certificat d’urbanisme).
- Technical diagnostics (asbestos, energy performance, lead, termites).
- Existing leases and tenant rights, which transfer with the building.
- Environmental and co-ownership (copropriété) obligations.
How Are Foreign Real Estate Investors Taxed?
Rental income is taxable in France, capital gains on sale are taxed (with rules depending on holding structure and period), and French real estate wealth tax (IFI) applies once a household’s net taxable real estate assets exceed €1.3 million — including for non-residents, but only on their real estate assets located in France. Treaty relief and structuring can reduce double taxation — plan the tax before, not after, you buy.
Direct Ownership vs SCI
| Feature | Direct | SCI |
| Setup | None | Company to form and run |
| Succession planning | Limited | Flexible (share gifts) |
| Multiple investors | Harder | Easy |
| Best for | Single simple asset | Family / long-term holding |
Final Verdict
Our real estate and tax teams structure, acquire and manage French property investments for foreign individuals, funds and corporates. De Gaulle Fleurance runs the due diligence, optimises the holding structure and closes the deal before the notaire.
