Purchasing Your Villa or Apartment
10 Key Steps in the Purchasing Process
The process for buying and selling property in France is straightforward and regulated by the French Government.
- Initial Reservation: Complete a Client Reservation Form with your sales advisor.
- Signature of the Reservation Contract: This binding agreement contains the buyer’s and the developer’s details, it also specifies the property details. The reservation contract has a seven day “cooling off period”.
- Payment of Deposit: Upon signing the reservation contract, 5% of the purchase price of the residence will be required, and placed into an escrow account.
- Financing: Once the reservation contract has been signed, your next step is to secure your financing.
- Signature of Deed of Sale ‘Acte de Vente’: Once you have secured your financing, the Notary prepares the documents for exchange of the title deeds (the Acte de Vente). The signature can be done in person or by proxy.
- Management Contracts: At the same time as the signature of the Acte de Vente, you'll also need to sign the management contracts, which specify the management services to be provided and associated charges.
- Making Stage Payments: The stage payments for new constructions is strictly controlled by French law, with payments being made at the completion of each stage of the property construction. The completion of each stage is verified and certified by a building professional. The properties are being sold under the legal status of ‘Vente en État Future d’Achèvement’ (VEFA). As such, the stage payments are those stipulated by this regime. Your sales associate will provide the details.
- VAT Claim: As your property will be part of a rental agreement, it will be possible to reclaim the VAT on the purchase price, a saving of 20%.
- Stamp Duties & Legal Fees: In France all property purchases must be completed through a Notaire, whose fees are charged as a percentage of the value of the purchase. Fees will be typically between 2.5 and 3% of the purchase price, plus processing of the mortgage, if applicable.
- The Notary System & Regulation: It is not usually necessary to employ a lawyer to purchase a property in France and is extremely rare for French people to do so. Most French property transactions are completed by the Notaire without any further legal representation being used. We will be happy to refer buyers to our bilingual Notaire.
Financing Your Purchase
Securing a Mortgage, Rates & Conditions
If you are planning on taking a mortgage, there are three compelling reasons to do so in France.
- There are a number of tax reliefs available to property owners with French mortgages.
- Currency risk is better protected, as both your mortgage and payments are in Euro, as is rental income you receive on your property.
- Raising a mortgage against a French property also offers greater peace of mind. French banks typically approve a development in advance of receiving any loan applications.
There are competitive mortgages available to finance your purchase, including 80% mortgages as well as interest only options.
The quality and variety of mortgages available means you can own a property in the South of France for a relatively modest capital outlay, and with reasonable ongoing operating costs.
The process to obtain a French mortgage is fairly straightforward. We will gladly refer you with a mortgage broker for non-French residents, who works closely with major banks and financial institutions.
Managing Your Property
Management Charges, Utilities & Services, VAT & Taxes
Everything you need to know, simple and transparent
The best approach to the provision of property management is to keep everything as simple and transparent as possible.
The management charge paid by owners will cover the cost of maintenance of all common areas of the estate, including basic maintenance of the buildings and communal pools, as well as upkeep of the gardens and pathways, and will be billed annually at cost.
Management charges will be allocated to individual properties on a direct basis where applicable, and for all common areas, costs will be prorated to the value of the unit and calculated by the Notaire for the Owner’s Association. The formula for this calculation is strictly governed by French law.
To be able to reclaim the VAT from your property purchase you will first need to sign the management contract. You will receive back directly from the French Government a refund of the full 20% of the VAT amount of the purchase price. The request to ask for the refund can happen once a year and takes a few months. Owners will normally receive the VAT reimbursement prior to delivery of your property
French ‘Taxe Foncière’ is a real estate tax very similar to a UK Council Tax. It is used by the local authorities to cover the costs of rubbish collection, lighting and access to the site. The tax is charged on the basis of the theoretical rental value of the property, and is adjusted annually in line with inflation. Local authorities are yet to evaluate this tax, however it is expected to be around €10 per m².
The Occitanie Region is experiencing a rapid growth in international tourism and now welcomes over 15 million visitors annually throughout the year. This growth is set to continue with expanding international connections.
What’s more, the region has a shortage of high end vacation rental property which means that LUX* Les Résidences is well placed to capitalise on this rising demand.
With stylish properties and hotel and resort amenities, and not forgetting its outstanding seafront location, occupancy will be very high. Our sales team will be happy to share our expected revenue scenarios and potential returns.
Renting Your Property
How to Rent, Anticipated Returns, Income Tax & Allowances
LUX* Les Résidences is an exceptional investment in one of the world’s most stable economies
In purchasing a LUX* Les Résidences villa or apartment , you will have the freedom to use your property up to 180 days per year. These stays can be taken in variety of ways such as months, weeks, short stays or spontaneous long weekends. Subject to our owners’ reservation guidelines, all you have to is just simply let us know when you're coming. When you're not in residence, you have the added bonus of putting the property in to our rental program and enjoying a healthy rental income.
Owners are liable for income tax on rental their earnings, whether or not you are resident in France. This follows the general rule that applies in most countries, that rental income generated is taxed in the country where the property is located.
Income tax on revenue generated by the letting of furnished property is low in France, due for the most part to the substantial deductions available.
There are a few ways to allow owners a series of deductions and allowances, which in most cases and circumstances result in a zero tax liability.
Our sales team will be able to discuss different options with you, and we can put you in touch with an independent tax advisor who can provide you with the relevant information for your specific situation and jurisdiction.
Selling your property
Freedom to sell at any time, without penalty
Sell at any time, without any fees to the management company, and Propriétés & Co would be only too pleased to help
Owners are free to sell at any time, without any fees to the management company, and we’d be only too pleased to assist you with this process.
You will of course be able to use another estate agent of your choice at this time.
In 2012, new rules were introduced regarding Capital Gains Tax for all EU residents. The tax is payable on the net gain, after deduction of acquisition and home improvement costs. For both residents and non-residents, tapering allowances are provided (over 22 years) with no Capital Gains Tax payable if the property has been held for more than this.
Sellers may also be expected to pay capital gains tax in their home country. Our sales team and financial advisors will be able to help.
France is renowned for its stable property market where historical growth has been 3-4%. In spite of the economic recession, coastal properties in the Languedoc region have shown continued recent growth of around 2%. (Source : INSEE – Notaires de France)
Our own forecasts predict that LUX* Les Résidences will have a robust capital growth at the upper end of the growth scale in the South of France. This is mainly due to a few influencing factors:
Overlooking the Thau Lagoon and next to the Port of Marseillan, LUX* Les Résidences enjoys an outstanding prime location in one of the world’s strongest markets for second homes. The entire Thau Lagoon is protected and will not see significant construction or development in the future. LUX* Les Résidences, La Baraquette is the last significant waterfront development to be permitted.
France has always had a solid, stable economy, a fair property tax regime, and the strongest tourism sector in the world. It has been for many years the second most popular destination for overseas home buyers from English Speaking countries, and remains to this day the most popular place to buy a second home.
The Occitanie Region is experiencing rapid growth in international tourism and now welcomes over 15 million visitors annually, making it the fourth largest tourist destination in France. This growth looks set to continue with expanding international connections in the region.
LUX* Les Résidences, La Baraquette is ideally situated in a prime location between Agde and Sète, with easy access to eight international airports within a two hour radius. The destination also benefits from trouble-free access to both the A75 (Paris) and A9 (Mediterranean) Autoroutes, as well as TGV access to Paris and Lyon, with Barcelona soon to be added.
As an award-winning developer, with a strong culture of innovation for three generations, Propriétés & Co executes well designed, environmentally friendly developments. The company’s pioneering formula of ‘authentic luxury’ and its passionate team of architects, artisans and designers work to deliver top-quality developments that are firmly rooted in the heritage, culture and landscapes of their surroundings. Propriétés & Co. partners with some of the world’s top hoteliers to bring unique resorts to the market.
LUX* Resorts & Hotels is a major hotel operator which owns or part-owns many of its hotels and runs others under management contract. It is a wholly owned subsidiary of LUX* Hospitality Ltd.,which is listed on the Stock Exchange of Mauritius and is an affiliate member of GML, the country’s largest conglomerate as of 2014. LUX* Resorts & Hotels helps people to celebrate life by delivering consistently on the promise of a different kind of luxury; hospitality that is Lighter.Brighter.
The architecture and interiors of LUX* Les Résidences, La Baraquette have been inspired by Marseillan’s traditional buildings, its port, lagoon, oyster farmers, and the flora and fauna of the region. The elegant designs of the properties – the vision of world-class architects and designers from Barcelona, Slow Life Architects – have created a relationship between the indoors and outdoors that enhances the value of ownership.
Propriétés & Co strives to create value for our owners and guests with a sustainable business model. Our approach is based in the long term and we prefer to work towards sustainable goals, rather than focusing on the profitability of one-off projects.
LUX* Les Résidences, La Baraquette represents exceptional value for money and stands up against any equivalent in the south of France. The upside of this is – from once you have decided to buy at LUX* Les Résidences, to the moment you take delivery of your superb new property – is that you are already taking advantage from any capital appreciation in the market.