SHARE
COPY LINK

PROPERTY

Property prices in Paris break through the €10,000 per square metre barrier

The cost of property in Paris has never been more expensive with confirmation on Thursday that the average price per square metre across the French capital has now passed the symbolic €10,000 mark. And it's not over yet.

Property prices in Paris break through the €10,000 per square metre barrier
Fancy buying a place in Paris? It'll cost you. Photo: AFP

Never before has the average price of property in Paris been so high.

The body of Notaires in Paris confirmed on Thursday that the average square metre price of property in the capital had broken through the €10,000 barrier.

Over the previous 10 years, the price of buying in Paris has risen by 62.5 per cent.

READ ALSO 

The €10,000 average masks a huge variation in prices, with properties in the greater Ile-de-France region coming in at just over half the cost of central Paris properties.

According to the estate agents MeilleursAgents, 13 of the capital's 20 arrondissements now have average prices over €10,000 per square metre.

Official figures covering the year of 2018 show that the cheapest area to buy in Paris is La Chapelle in the 18th arrondissement at €7,460 per square metre, while the most expensive is Odéon in the 6th arrondissement at an incredible €17,410 per metre.

Perhaps unsurprisingly at those prices, there has been a fall in the number of people buying properties – 2.6 percent fewer contracts were signed in the first quarter of 2019 than the same period in 2018. 

Average prices in Paris remain well below those in London and New York however where the price per square metre is €14,500 and €13,5000 respectively, according to figures quoted in Le Parisien newspaper.

 

But prices are set to rise further mainly due to the fact that demand outweighs supply and low interest rates makes mortgages more affordable.

The average time for selling a property in Paris is 42 days but it's only a week for the most in-demand apartments.

The shortage of new housing in Paris has been blamed for the rise, although some say that Brexit is also a factor as wealthy individuals seek an alternative base to London.

Prices are also on the rise in suburbs surrounding Paris including the wealthier areas of Levallois and Boulogne-Billancourt as well as in towns such as Bagnolet in the east and Saint-Ouen in the north.

In February a Paris record was broken with the purchase of an apartment in the 7th arrondissement for €39 million.

The buyer of the 16-room, 1,000 square-metre flat was described as a wealthy individual who wanted to leave the UK because of the uncertainty caused by Brexit. 

 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

The post-Brexit tax rules on selling second-homes in France

British second-home owners in France who want to sell their properties are being warned of an extra layer of administration - and expense - in place since Brexit.

The post-Brexit tax rules on selling second-homes in France

Brits wishing to sell property in France may now need to appoint a représentant fiscal (tax representative) in France in order to properly declare the sale to French tax authorities. 

Who?

This law applies to people who own property in France but do not live here – mostly that would be second-home owners but it could also apply to, for example, anyone who has inherited property.

This requirement has always been the case for non-Europeans such as Americans, Canadians and Australians and now also applies to Britons since the end of the Brexit transition period. People who live in another EU or EEA country are exempt.

The law is based on residency, not nationality. So if, for example, you have your main residence in the UK but have an Irish passport, you would still be covered by this requirement.

Exemptions

As well as EU residency, there are a couple of other exemptions;

  • If you sell your property for less than €150,000
  • If you have owned the property for more than 30 years (in which case the sale is exempt from capital gains tax and social security contributions).

What is a représentant fiscal?

This is simply a representative for tax purposes in France, and the person does not need specific qualifications in law or accountancy.

The following can be appointed:

  • A company or organisation already permanently accredited by the tax authorities;
  • A bank or credit institution operating in France;
  • The buyer of your property, if they are domiciled in France for tax purposes (they do not need to be a French citizen);
  • Any other individual who is domiciled in France for tax purposes (they do not need to be a French citizen) – in this case they will need to be accredited by the local authority;
  • If the property is in Paris, the individual will need to be accredited by the Île-de-France tax authorities – département de Paris-Pôle gestion fiscale Centre-Missions foncières, 6 rue Paganini, 75020 Paris. Tel: 01 53 27 46 45

If you decide to appoint an individual rather than a company as your représentant fiscale, bear in mind that the process can be quite complicated, so it would be better to check that they are confident in dealing with the tax authorities, to ensure that you don’t end up with unfinished business with the tax office.

If you chose a company, they will naturally charge for the service. 

Whichever representative you chose, you will need to provide a dossier of documents relating to the property sale and also confirming that you are a tax resident of a country outside France (tax returns, banking information, for example).

Will you have to pay tax on the proceeds of the sale?

If your main residence is not in France, you have no other income in France and you do not complete the annual French tax declaration you will not usually have to pay tax in France on the proceeds of the sale, provided your total estate is worth less than €1.3 million.

Properties worth more than €1.3million may be liable for the impôt sur la fortune immobilière (property wealth tax).

You will of course have to declare the income from the sale in the country where you are resident and, if applicable, pay capital gains tax.

What about French property taxes?

If you have owned property in France you will have been paying the taxe foncière and taxe d’habitation.

These will cease, but bear in mind that taxe foncière is charged based on who owned the property on January 1st of the relevant tax year. So if you sold your property in February 2022, you will still get a tax bill in autumn 2022 to cover that year. Only the following year will the new owner become liable, unless the sale contract for the property included an agreement to share or split outstanding taxes.

Find more information on the Internationals section of the French tax office website HERE or pay a visit to your local tax office in France. Find your local office by searching ‘Centre des Finances publiques’ plus the name of your commune – tax offices are open to the public on a walk-in basis and the staff are usually friendly and helpful. 

SHOW COMMENTS