Purchase taxes on Paris apartments often give buyers pause; but how does Paris really stack up to other major real estate markets? Buying an apartment in Paris is unfamiliar territory for many international investors. In addition to language barriers and complex closing procedures, one question looms when buyers calculate their purchase budget: in France, “notaire …Continue Reading
A residential development on the banks of the Seine offers Marais lovers a change from historical apartments. Buying real estate in central Paris usually means a search for a building with history: wood floors and moldings, high ceilings, stone walls or marble fireplaces, and the nearly-impossible-to-find elevator. “Modern” buildings conjure up images of box-like layouts, …Continue Reading
Now that the French election has come to a close naming François Hollande as President, the first Socialist party member elected since Mitterand, one question is left lingering, “How will this affect me?” As a property owner, you may be wondering what it means to have a Socialist in office, and how exactly issues like …Continue Reading
Take a look at these interesting numbers that break down from which countries international buyers are coming: Russians purchase the largest share of properties, around 20%, and they want the “crème de la crème,” paying up to about $25M for a property. The Swiss account for the next largest buying block at 15% of the …Continue Reading
The higher rate of capital gains tax imposed on those who live outside of Europe’s borders is coming under closer legal scrutiny. Under the terms of most international tax treaties signed by France second home owners are liable for capital gains tax in France on the sale of their home. They may also be liable …Continue Reading
Question: Is there a way to sell a second home property in France and “roll” the gain into another second home property without paying or paying a small capital gains tax? Answer: You may be thinking of a 1031 exchange under US law. Nothing like that exists in France; but for US buyers, two properties both …Continue Reading
The eurozone crisis isn’t phasing the international property buyers in Paris. In fact, in the second half of 2011, the Paris real estate market posted the highest sales numbers of all European countries, according to a report by CBRE. Paris continues to be a ‘safe bet’ for international investors looking to use their life savings …Continue Reading
Paris real estate prices went up 1% in March after several months slightly down according to MeilleursAgents.com. Prices are up in much of the area surrounding Paris as well. Interestingly, the number of transactions is off by 30% over last year for the 1st quarter, so the price increases rest on relatively fewer property sales. …Continue Reading
Question: What do you think is a reasonable price for a fractional? That is, if you think the true market price of a property is 500.000 euros, what would be a reasonable price for a 1/13th ownership? Would it make a difference if the months are fixed? Answer: The industry standard is to take the …Continue Reading
Question: How did Haussmann pay for the renovation of Paris? Answer: I had to go to Wikipedia for this one because I didn’t know. After all things were not in good shape after the revolution! Wikipedia says Napoleon III, and engineers such as Michel Chevalier or entrepreneurs like the Pereire brothers, believed that society could be …Continue Reading
Question: Hi Miranda, what is your favorite arrondissement or neighborhood and why? Answer: It’s hard to choose just one. We like a lot of places in Paris. To see our top picks in each of the 20 arrondissements, check out our new map section on our website called “Best of Paris”. It’s our subjective view on what …Continue Reading
This stunning and rare duplex on the 5th and 6th floors of a high quality 1910 building with elevator is perfectly situated near the prestigious Trocadéro Square. A former artist workshop, the apartment was elegantly renovated into a spacious, light-filled 2-bedroom, 1.5 bath apartment. On the 5th floor, a spacious living room with a wall …Continue Reading
Wealth Tax Reform Beginning in 2012, if your net wealth in France exceeds €1.3m, the total value is subject to wealth tax. Previously €800K could be exempted, but not anymore. If your property is valued at less than €1.3M no wealth tax reporting is required. The good news is that taking a mortgage to …Continue Reading
A number of factors are exerting downward pressure on the Paris real estate market, including tax reform, rising interest rates and the Euro zone crisis. But, global factors, such as an influx of buyers from a host of non-Euro zone countries like Brazil, Russia and Australia, as well as the Middle East and Asia, seem …Continue Reading
Question: Hi Miranda, Our short term apartment rental agency receives requests from our anglophone clientele time to time on advise on how to purchase properties in Paris. We would be interested in discussing potential business development opportunities with you. Answer: Hi, please let me know how to reach you. We often find properties for clients who …Continue Reading
Here’s a fun map from the writers at My Little Paris with some of their picks for Paris’ best hidden restaurants, bars, and shops.
There comes a time in every love affair when you look beyond the charm and the beautiful face and learn whether the real substance is there. Those in love with Paris are fortunate, for there is always more to know, and the past, she comes with is a fascinating one. One of the largest cities …Continue Reading
Question: Hi Miranda, So great to find your company, I’m from the Bay Area and will be traveling to Paris for vacation, just happened to see this web-site. In mid-term, I would love to own a property in Paris – 1/2 bed/1 bath will be fine. Where should we start? Answer: Hi! We would be glad …Continue Reading
Part of the process of buying an apartment in Paris is knowing that once you’ve purchased it, there will most always be some renovating, touching up, and personalizing to do before it really feels like home. Long time PPG colleagues Alon and Betsy (A+B Kasha) are profiled in the New York Times about their successful …Continue Reading
We’re pretty familiar with the HGTV crew through our past appearances on their TV show, House Hunters International. But our most recent episode, where we help the founder of our sister company find a luxurious apartment in Paris is one of our favorite episodes of all time. Laura Sanders, who founded Fractional Paris, the fractional …Continue Reading
The economic crisis in Europe seems not to have deterred foreign buyers from investing in Paris real estate. According to Euronews, French real estate agents are reporting sales of luxury property in Paris at an all-time high, and at all-time-high prices. Many of these buyers, they say, are international clients, often from Brazil, Russia and …Continue Reading
Paris has been named one of the best performing cities for real estate investment following it’s impressive price growth in 2011.
A true fairy tale- one of the world’s most beautiful princesses is selling her Mediterranean villa for a cool €21 Million, or $28 Million. Aside from the naturally beautiful view and the fact that it is just minutes from Monte Carlo, the estate features original marble fireplaces, several spacious bedrooms, a pool and guest house, …Continue Reading
According to Jones Lang LaSalle in its 2011 Global Capital Flows report, there was US$411 billion of direct commercial investment globally in 2011, a 28% increase over 2010.
PPG is now on Pinterest! Follow our pinboards full of beautiful pictures of Paris monuments, sights, vintage pictures, and more. What’s not to love about the beauty of Paris? http://pinterest.com/thisparislife/
Barracks, land, old prisons, offices, mansions, houses and apartments: over the next 3 years, the French government is planning the sale of nearly 2000 properties in Paris and throughout France, for an expected 2.2 billion euros in revenue. Sales of hundreds of properties from last year alone earned the state 590 million last year. This policy …Continue Reading
The New York Times featured a telling story last summer of a young couple moving from London to Paris, bringing their Paris real estate dream to life. As property prices in Paris have soared in recent years, bolder buyers are moving away further and further away from the traditionally sought-after and more touristy neighborhoods toward …Continue Reading
In May of 2011, the President of PPG contributed a post to the lovely HiP Paris Blog…it tugs on the heart strings of making your real estate dreams in Paris come true. Have a read:
When dealing with multiple currencies, trying to set up a mortgage safeguard through mainstream banks can be quite time consuming and inconvenient. Currency fluctuations can make budgeting impossible. Moreover, international wire transfer fees and commissions charged by your bank often add up to a healthy sum. International brokers, specialists in this field, will often offer …Continue Reading
Guide to French Mortgages Eligibility & criteria All of the mortgages sourced by French Mortgage Broker International Private Finance are in Euros and secured against French residential property. French mortgages are full status and therefore proof of income and outgoings will be required to submit an application to a lender. The maximum loan to value …Continue Reading
Despite the hard times that have faced France and the European economy in the last year, real estate in the French capital is still providing a safe and sustainable investment. Prices in Paris rose a historic 2.7% in the last quarter of 2011, making Paris reputably some of the most expensive ‘bricks & mortar’ in …Continue Reading
2011 has undoubtedly been a turbulent year in the financial markets which have had an impact on many people’s decisions as to whether or not they will proceed with their dream purchase in France. However, uncertainty and austerity as well as low returns from saving accounts has also ensured that many people are deciding not …Continue Reading
Paris, France, is an unusually coherent architectural creature. Paris’ modern buildings have developed gradually out of earlier styles; palaces and mansions have survived by transforming into apartments and shops, and most streets harbor a range of buildings from various centuries. Our Paris guide traces a millennium of building in Paris, and what’s amazing is that …Continue Reading
onjour! Baron Haussmann, the man responsible for the transformation of the capital city into the magnificent “City of Light” that we all know and love to visit. Napoleon and Paris Napoleon the First had grand ideas for Paris, a city he hoped would become not only the capital of France but of the Empire. He …Continue Reading
onjour! We could not resist a leisurely walk through the most beautiful sections of the “City of Light” to promenade down the world’s most elegant avenue: the Champs-Elysées. The Historic Road At its origin, it was simply a very ambitious king’s will to modernize an urban landscape. King Louis the Fourteenth believed that France, the …Continue Reading
onjour! Let’s share a visit to a Parisian neighborhood, one particularly picturesque and charming. Far more than a just a distri ct, this small village in the heart of the big city is an oasis of peace, that has kept its soul of long ago, and its bohemian spirit: Montmartre. A Sacred Place High above the …Continue Reading
onjour! Let’s take a stroll through central Paris. We will follow the Seine River as it winds it way through the capital city for more than 14 kilometers, and remember some of the most distinctive of the 33 bridges that cross it. The Seine From the beginning, the Seine has played an essential role …Continue Reading
Property taxes are everywhere in the world, but in France, there are two particular types you need to know about. First, the taxe foncière, a property tax for which the owner is liable, and a taxe d’habitation, for which the resident of the property is liable. If you are a owner-occupant, then you are responsible for …Continue Reading
A poll on Figaro Immobilier yesterday asked readers to cast their vote on whether or not the Mairie de Paris (Paris City Hall) has the right to want to limit the number of furnished apartment rentals in Paris. This topic is hot in the press right now, because of the huge amount of rental apartments …Continue Reading
A study released by The Move Channel shows that the majority of French property searches online are focused on the Southern region of Provence, the Alps, and Côte d’Azur. This may come as a surprise to most, but the region has many beautiful features, perfect for a vacation home. Despite this demand for property in the …Continue Reading
Bedrooms: 2 Bathrooms: 3 Floor: 4th floor (with elevator) Size: 140 m2 (1507 square feet) Price: € 1,895,000 This is a stunning, 1507 square foot, two bedroom, three bathroom apartment with a view of the Eiffel Tower in Paris’ elegant 7th arrondissement. The apartment has kept its charm with original crown moldings, fireplace and wood flooring, but …Continue Reading
IKEA built a dwelling of 54m2 inside the Auber station of the Paris metro. It was inhabited by 5 Parisians from January 9th to the 14th. Watch this interesting video of the project.
A historic building, part of the gorgeous Palais Royal in Paris’ 1st Arrondissement, that dates back to the times of Cardinal Richelieu in 1629, was recently renovated by New Yorker Amanda Sykes. After convincing the French bank who has owned the building for years and years that she could rent the apartment and oversee the …Continue Reading
High end real estate has taken off after the financial crisis of 2010 in cities like Paris, London, and New York. Prices rose 20% in Paris between January 2010 and January 2011, according to Nestoria. But how is this so when the economic outlook is so dark? The answer is massive foreign investment. …Continue Reading
Your apartment in Paris is a big investment. Focusing on a few key details can help maximize your return when it’s time to sell. Setting a high, but attainable price is a good first step that will help your property to go quickly with a flurry of bidders. Taking steps to minimize your capital gains …Continue Reading
Have an extra $50 million to spend? Well, even if you don’t, it’s fun to imagine buying your own private mansion in one of Paris’ premiere neighborhoods. This historic 10,700 square foot, 10 bedroom, 10 bathroom private mansion located near Place des Victoires has been renovated into separate luxury apartments while preserving the architectural details, including …Continue Reading
Recently we had a chance to catch up with Penny Drue Baird, author and interior designer extraordinaire. Her work has been featured numerous times in Architectural Digest and she enjoys working with clients on both sides of the ocean and beyond. PPG: What originally brought you to Paris? PDB: My love affair with Paris began …Continue Reading
An interesting look at who owns investment property that is rented out short term in France and who their renters are. Perhaps unsurprisingly over 80% of all short term rental apartments are owned by French, followed by Italian, American and Swiss owners. Who rents apartment short term in Paris for vacations or temporary …Continue Reading
The client, an attorney from the Philippines, hoped to find a pied-á-terre on a quiet street near the charm and bustle of the 6th arrondissement. Though the apartment was a quick and lucky find, our expertise and negotiating skills ultimately saved her a substantial sum. The apartment had great bones that only needed to be …Continue Reading
A new law enacted July 2011 significantly alters existing tax and trust rules in France. The new law affects the wealth tax, gifts and inheritances and trusts beginning in 2012, and in some cases is applied retroactively. Tax will now be imposed on all wealth in France over 1.3M euros, including real estate, with few …Continue Reading
Having the right information and choosing the right ownership structure can be key to maximizing the potential of your property investment. There are several options for structuring the property purchase: in your own name in the joint names of you and your spouse or co-purchaser(s) in the names of your adult children or of someone …Continue Reading
These Australian clients (she’s a food writer and restaurant critic, he’s an engineer and businessman) were referred to us by another client. They wanted to find a 2-bedroom apartment in an eclectic, up and coming neighborhood that would have an authentic feel, away from the tourist zones. During their house-hunting visit to Paris the clients …Continue Reading
Clients from the Philippines, a lawyer and a businessman, sought a very rare combination: a 2 bedroom, 2 bath apartment with major Eiffel Tower views. Now a beautiful Paris vacation rental, the central hub of the apartment is the kitchen, the rest of the space is divided between the bedrooms and bathrooms connected down a long hallway, …Continue Reading
“We love paris property group – You all were just wonderful! We were so extremely impressed with the efficiency and competence of everyone on your staff. It was a pleasure working with you, Kathryn and Jerome. I will let Madelyn know also how much I appreciate her referral to you.” Nikki B Los Altos Hills, …Continue Reading
Property owners who spend less than 184 days a year in France and do not pay income taxes in France are considered “non-resident.” Non-resident owners are expected to: pay property taxes (“taxe foncière”) pay occupancy taxes (“taxe d’habitation”), unless you have a long-term renter in the property, in which case this tax is their responsibility …Continue Reading
Prior to the final signing, the notaire will send the buyer a completion statement showing the balance of the purchase price and all other fees and taxes required to complete the purchase. The buyer will need to get those funds into the escrow account of the notaire in time for the date fixed for the …Continue Reading
We wrote an article a few weeks ago about the current status of the debate on the legality of short-term rental of apartments in Paris. As we noted, despite the threats to vigorously prosecute and end short-term rentals in Paris, to date Mayor Delanoë has done little to make good on that threat. Capital magazine, …Continue Reading
This Australian client wanted to find a 2-bedroom pied à terre in a period building with good bones. Since she spends a lot of time in Paris, she focused her search in the 9th and 18th arrondissements, looking for a village-like residential feeling, removed from the normal tourist zones. We found her an apartment with charming street views on one …Continue Reading
The essential purchase process is divided into two stages. First, the purchase is formalized by a preliminary contract that may be prepared either by a notaire – a promesse de vente – or by an estate agent or privately between the parties – a compromis de vente. In either case, the seller is obligated to …Continue Reading
Agency fees are included in the listing price that buyers see for a property. Listing fees are ordinarily about 5%. The purchase is ordinarily structured so that the buyer pays the seller and the seller pays the agency out of his total. But, it is also possible for the purchase contract to separate the two, …Continue Reading
Property purchase in France requires the seller to provide to the buyer the results of 6 required diagnostic examinations of the property: loi carrez – precisely defined measurement of the surface area of the property presence of lead presence of asbestos presence of termites condition of the electricity installation condition of the natural gas installation …Continue Reading
In France, no capital gains tax is paid on the sale of a primary residence, however for second homeowners big changes are looming. For all secondary residence or investment properties sold after February 1, 2012, the schedule for reductions in capital gains tax for owners who have held property for a certain number of years …Continue Reading
The allure of living in a Paris pied-à-terre for a week or month, and paying much less than for a hotel room, has created strong demand for short-term lodging, but its growing popularity has raised the ire of hotels and residential property owners. “Residents complain about the noise, about the comings and goings, about the …Continue Reading
One hundred years ago, a 19-year-old artist named Picasso settled into an atelier along the cobblestone streets of the 18th arrondissement in Paris. Today, Picasso’s first Montmartre workshop has been converted into an apartment and is now on the market for €1,500,000. With views of Sacre Coeur and an ideal location in the heart of …Continue Reading
Normally, property in France doesn’t come cheap, but thanks to judicial reforms, there are a number of small-town courthouses priced to sell. A decline in religious conviction means that there are also priories, abbeys and churches on the market. Both church and state are having difficulty bringing in the customers, so if you have always …Continue Reading
A flurry of articles in the French and international press (including the New York Times) created an outcry about a year ago about a crack-down by Mayor Delanoë’s office on short-term rentals of Paris apartments. Essentially, the mayor’s position is that, if an apartment is designated “residential” and not “commercial” property, rentals of less than …Continue Reading
Maybe you’d like to buy property in Paris, but you’re afraid of losing money. What makes an apartment a great investment property? The top rental agencies in Paris refer their best clients to us because we understand what the key components are that create lasting value. That elusive “it” quality is important when looking for …Continue Reading
It is the regular business meeting of the co-owners association in a building. The syndic mails out the agenda several weeks before the meeting to all the co-owners, and voting is strictly limited to the issues listed in that notice. Items include building management fees, approval of the syndic’s management contract, proposed building works, as …Continue Reading
There is no capital gains tax on the sale of a primary residence in France. For a secondary residence owned either individually or through an SCI, the amount of capital gains owed at the time of sale is determined by (1) the fiscal residence of the seller, and (2) the number of years that the …Continue Reading
What is the difference between a compromis de vente and a promesse de vente? A compromis de vente is a mutual obligation of the buyer (to buy) and the seller (to sell). Literally translating as “a promise to sell,” the promesse de vente is a unilateral obligation to sell. There are two substantial drawbacks to …Continue Reading
Whether the parties sign a compromis de vente or a promesse de vente, the preliminary contract will always contain the following terms: The agreed purchase price. Any conditions for completion of the sale, including the minimum acceptable terms for financing if the buyer will be seeking a mortgage. The party to whose benefit any conditional …Continue Reading
The buyer should normally expect to pay fees and taxes of about 6.5-7.5% of the purchase price. These break down roughly as follows: Land Registry taxes (known as TPF – Taxes de publicité foncière) of approximately 5.1% Miscellaneous expenses – calculated according to various documents that the notaire must search and examine in order to …Continue Reading
French banks will lend up to 85% of the assessed value of the property and renovations to most non-resident buyers. French banks respect a very strict loan-to-income ratio for issuing mortgages, although some are more flexible in considering assets and investment income. Mortgage rates can be fixed or variable rates or a combination of the …Continue Reading
The notaire is a public official with legal training (but different from a lawyer) who prepares and registers official acts such as wills and property ownership transfers. Notaires enjoy a very privileged and highly respected position in French society. In the context of property sales, while the preliminary contract can be prepared by either …Continue Reading
