Buying in Paris: All Costs, Fees and Taxes Explained
Buying property in Paris involves three separate layers of cost: one-time closing costs of roughly 7.5-8% of the purchase price, ongoing annual carrying costs that are low by international standards, and two taxes worth planning around ahead of time, the French wealth tax (IFI) and capital gains tax when you eventually sell. Here’s what to expect at each stage, with real numbers.
One-Time Closing Costs
Budget roughly 7.5-8% of the purchase price on top of what you’re paying for the property itself (less for new construction). This isn’t one fee. It’s a combination of taxes and professional fees, all collected and paid by the notaire at closing:
| Cost item | Typical rate | Notes |
| Land registry tax (taxe de publicité foncière) | 6.35% | For existing (“old”) properties |
| Real estate security contribution | 0.1% | Fixed rate |
| Notaire’s fee | ~0.83% + 20% VAT | Set by law; split between notaires if buyer and seller each use their own |
| Miscellaneous/administrative costs | ~€700 | Assessed by the notaire when preparing the deed |
| Real estate agency commission | 4-5% | Usually built into the listing price and paid by the seller from proceeds |
A concrete example: on a €1,000,000 apartment, closing costs typically land around €75,000-€80,000, most of it the land registry tax and notaire’s fee, not the seller’s agent commission, which is usually already priced into the listing.
Who pays the notaire fees? The buyer does. If both sides are represented by separate notaires, which we recommend and doesn’t cost extra, the fee, which is set by law, is split between the two notaires rather than doubled. For the full step-by-step process this cost applies to, see French Purchase Process: Step by Step.
Ongoing Carrying Costs
This is where Paris compares favorably to many major cities, particularly the US: annual carrying costs are low relative to the purchase price.
| Cost | Typical amount | Notes |
| Property tax (taxe foncière) | ~0.1-0.2% of the purchase price/year | Paid annually by all owners |
| Occupancy tax (taxe d’habitation) | ~0.2-0.3% of the purchase price/year | Only applies to second homes and short-term rentals; primary residences have been exempt since 2023 |
| Building fees (charges de copropriété) | ~€150-300/month | Covers building insurance, water, trash collection, common-area maintenance, and concierge salary where applicable |
| Utilities | ~€250/month | Internet/phone/TV, electricity, gas (water is building-wide and part of your building charges) |
| Homeowners insurance | ~€500-600/year | Required, includes a personal liability component |
For a €1,000,000 apartment used as a primary residence, that’s roughly €8,000 a year total in carrying costs, low compared to what the same purchase price would cost to carry in most major US cities.
French Wealth Tax (IFI)
France’s wealth tax, formally the Impôt sur la Fortune Immobilière (IFI), applies specifically to real estate assets, not financial holdings.
Who’s subject to it?
Anyone, resident or non-resident, whose net taxable real estate assets exceed €1.3 million. What varies by residency is scope, not whether the tax applies: non-residents are taxed only on their French real estate, while French tax residents can eventually have worldwide real estate included after a transitional period.
How much is it?
The tax is graduated, meaning each rate only applies to the portion of value within that bracket, not the whole amount:
| Net taxable value | Rate |
| €800,000 – €1.3 million | 0.5% |
| €1.3 million – €2,570,000 | 0.7% |
| €2,570,000 – €5 million | 1% |
| €5 million – €10 million | 1.25% |
| Above €10 million | 1.5% |
How to reduce or avoid it
Financing and ownership structure both meaningfully affect IFI exposure. Taking a mortgage rather than paying all-cash, for instance, reduces the net taxable value the tax is calculated against.
“We have this conversation with clients during our initial call, not after an offer is accepted,” says Miranda Junowicz, founder of Paris Property Group. “Financing takes time to set up, and if a mortgage is part of how you want to structure the purchase for IFI purposes, that needs to be arranged early. “
A notaire or specialized tax attorney should be part of the structuring conversation before you close, since the structure you choose at purchase is expensive to change later.
Capital Gains Tax When You Sell
There are two components to understand, and they’re taxed differently depending on residency.
Capital Gains Tax: For a primary residence, there’s no capital gains tax on sale, full stop. For any other property (second home, investment property), the state assesses 19% capital gains tax. The gain itself is calculated as the sale price minus the purchase price, acquisition costs, and the cost of material upgrades, or after five years of ownership, sellers can apply a flat 15% increase to the purchase price instead of itemizing actual renovation costs. Tapered relief starts at year six of ownership, with no capital gains tax owed after 22 years.
Social Charges: An additional 17.2% applies on top, for a combined rate of up to 36.2% on non-exempt sales. EU residents (outside France) are exempt from a portion of social charges, since they’re presumed to pay the equivalent in their home country; French residents and non-EU residents are not exempt. Social charges are also tapered, fully phased out after 30 years of ownership.
The notaire calculates and collects whatever is owed directly at the closing of the sale. There’s no separate filing required on the buyer’s side at that point.
Putting It All Together: A Real Example
For a €1,000,000 apartment, purchased as a primary residence with a mortgage:
- Closing costs at purchase: ~€75,000-80,000 (one-time)
- Annual carrying costs: ~€8,000/year
- Wealth tax (IFI): None owed if net taxable value stays under €1.3M (financing reduces this)
- Capital gains tax on eventual sale: None, primary residences are exempt from both the 19% capital gains tax and the 17.2% social charges
Paris carries low ongoing costs relative to major US cities, but the upfront closing costs and the wealth tax threshold are both worth planning around before you make an offer, not after. Learn more about working with Miranda, or see our full buyer’s agent services. For the process these costs fit into, see French Purchase Process: Step by Step and How to Buy an Apartment in Paris. For financing specifics, see French Mortgages in 2025: Why Non-Resident Buyers Should Consider French Financing, and for what happens after closing, see Property Tax in France for Non-Residents.
Frequently Asked Questions
How much are the closing costs when buying property in Paris?
- Roughly 7.5-8% of the purchase price, covering land registry tax (6.35%), a small security contribution, the notaire’s fee (~0.83% plus VAT), and minor administrative costs. Seller’s agency commission is usually already built into the listing price.
How much is the French wealth tax?
- It applies to anyone, resident or non-resident, whose net taxable real estate assets exceed €1.3 million. Non-residents are taxed only on their French real estate, while French tax residents can eventually have worldwide real estate included. The tax is graduated from 0.5% up to 1.5% depending on value.
How do I reduce my wealth tax exposure in France?
- Financing and ownership structure are the two main levers. Taking a mortgage rather than paying in cash lowers net taxable value; the right structure is worth discussing with a notaire or tax attorney before you close, since it’s expensive to change afterward.
What is the capital gains tax on selling property in France?
- For a primary residence, none. For any other property, 19% capital gains tax plus 17.2% social charges (less for EU and some other European citizens), with relief that increases starting in year six of ownership and reaches full exemption from capital gains tax after 22 years.
Are there any costs people commonly forget to budget for?
- Building fees and homeowners insurance are the two most often underestimated, both are recurring monthly or annual costs, not one-time. Utilities and the small annual property tax are also easy to overlook when budgeting purely around the purchase price.
Buying in Paris: All Costs, Fees and Taxes Explained
Buying property in Paris involves three separate layers of cost: one-time closing costs of roughly 7.5-8% of the purchase price, ongoing annual carrying costs that are low by international standards, and two taxes worth planning around ahead of time, the French wealth tax (IFI) and capital gains tax when you eventually sell. Here’s exactly what to expect at each stage, with real numbers.
One-Time Closing Costs
Buyers should budget roughly 7.5-8% of the purchase price on top of what they’re paying for the property itself (less for new construction). This isn’t one fee, it’s a combination of taxes and professional fees, all collected and paid by the notaire at closing:
| Cost item | Typical rate | Notes |
| Land registry tax (taxe de publicité foncière) | 6.35% | For existing (“old”) properties |
| Real estate security contribution | 0.1% | Fixed rate |
| Notaire’s fee | ~0.83% + 20% VAT | Set by law; split between notaires if buyer and seller each use their own |
| Miscellaneous/administrative costs | ~€700 | Assessed by the notaire when preparing the deed |
| Real estate agency commission | 4-5% | Usually built into the listing price and paid by the seller from proceeds |
A concrete example: on a €1,000,000 apartment, closing costs typically land around €75,000-€80,000, most of it the land registry tax and notaire’s fee, not the seller’s agent commission (which is usually already priced into the listing).
Who pays the notaire fees? The buyer does. If both sides are represented by separate notaires (which we recommend and doesn’t cost extra), the fee, which is set by law, is split between the two notaires rather than doubled. For the full step-by-step process this cost applies to, see French Purchase Process: Step by Step.
Ongoing Carrying Costs
This is where Paris compares favorably to many major cities, particularly the US: annual carrying costs are exceedingly low relative to the purchase price.
| Cost | Typical amount | Notes |
| Property tax (taxe foncière) | ~0.1-0.2% of purchase price/year | Paid annually by all owners |
| Occupancy tax (taxe d’habitation) | ~0.2-0.3% of purchase price/year | Only applies to second homes and short-term rentals; primary residences have been exempt since 2023 |
| Building fees (charges de copropriété) | ~€150-300/month | Covers building insurance, water, trash collection, common-area maintenance, and concierge salary where applicable |
| Utilities | ~€250/month | Internet/phone/TV; electricity,gas (water is building wide and part of your building charges) |
| Homeowners insurance | ~€500-600/year | Required, includes a personal liability component |
For a €1,000,000 apartment used as a primary residence, that’s roughly €8000 a year total in carrying costs, genuinely low compared to what the same purchase price would cost to carry in most major US cities. For reference, a €795,000 two-bedroom apartment carries roughly €6,824/year in real costs (€1,200 property tax, €2,124 building fees, €500 insurance, €3,000 utilities) — well under 1% of the property’s value.
French Wealth Tax (IFI)
France’s wealth tax, formally the Impôt sur la Fortune Immobilière (IFI), applies specifically to real estate assets, not to financial holdings, and only kicks in above a real threshold.
Who’s subject to it? Anyone, resident or non-resident, whose net taxable real estate assets exceed €1.3 million. What varies by residency is scope, not whether the tax applies: non-residents are taxed only on their French real estate, while French tax residents can eventually have worldwide real estate included after a transitional period.
How much is it? The tax is graduated, meaning each rate only applies to the portion of value within that bracket, not the whole amount:
| Net taxable value | Rate |
| €800,000 – €1.3 million | 0.5% |
| €1.3 million – €2,570,000 | 0.7% |
| €2,570,000 – €5 million | 1% |
| €5 million – €10 million | 1.25% |
| Above €10 million | 1.5% |
How to reduce or avoid it: Financing and ownership structure both meaningfully affect IFI exposure. Taking a mortgage rather than paying all-cash, for instance, reduces the net taxable value the tax is calculated against. A notaire or specialized tax attorney should be part of the structuring conversation before you close, since the structure you choose at purchase is expensive to change later.
Capital Gains Tax When You Sell
There are two components to understand, and they’re taxed differently depending on residency.
Capital Gains Tax: For a primary residence, there’s no capital gains tax on sale, full stop. For any other property (second home, investment property), the state assesses 19% capital gains tax. The gain itself is calculated as the sale price minus the purchase price, acquisition costs, and the cost of material upgrades, or after five years of ownership, sellers can apply a flat 15% increase to the purchase price instead of itemizing actual renovation costs. Tapered relief starts at year six of ownership, with no capital gains tax owed after 22 years.
Social Charges: An additional 17.2% applies on top, for a combined rate of up to 36.2% on non-exempt sales. EU residents (outside France) are exempt from social charges, since they’re presumed to pay the equivalent in their home country; French residents and non-EU residents are not exempt. Social charges are also tapered, fully phased out after 30 years of ownership.
The notaire calculates and collects whatever is owed directly at the closing of the sale, there’s no separate filing required on the buyer’s side at that point.
Putting It All Together: A Real Example
For a €1,000,000 apartment, purchased as a primary residence with a mortgage:
- Closing costs at purchase: ~€75,000-80,000 (one-time)
- Annual carrying costs: ~€8,000/year
- Wealth tax (IFI): None owed if net taxable value stays under €1.3M (financing reduces this)
- Capital gains tax on eventual sale: None, primary residences are exempt from both the 19% capital gains tax and the 17.2% social charges
Frequently Asked Questions
How much are the closing costs when buying property in Paris? Roughly 7.5-8% of the purchase price, covering land registry tax (6.35%), a small security contribution, the notaire’s fee (~0.83% plus VAT), and minor administrative costs. Seller’s agency commission is usually already built into the listing price.
How much is the French wealth tax? It only applies to non-resident owners with net taxable French real estate assets over €1.3 million, and it’s graduated from 0.5% up to 1.5% depending on value.
How do I reduce my wealth tax exposure in France? Financing and ownership structure are the two main levers. Taking a mortgage rather than paying in cash lowers net taxable value; the right structure is worth discussing with a notaire or tax attorney before you close, since it’s expensive to change afterward.
What is the capital gains tax on selling property in France? For a primary residence, none. For any other property, 19% capital gains tax plus 17.2% social charges, with relief that increases starting in year six of ownership and reaches full exemption from capital gains tax after 22 years.
Are there any costs people commonly forget to budget for? Building fees and homeowners insurance are the two most often underestimated, both are recurring monthly or annual costs, not one-time. Utilities and the small annual property tax are also easy to overlook when budgeting purely around the purchase price.
Paris carries genuinely low ongoing costs relative to major US cities, but the upfront closing costs and the wealth tax threshold are both worth planning around before you make an offer, not after. Learn more about working with Miranda, or see our full buyer’s agent services. For the process these costs fit into, see French Purchase Process: Step by Step and How to Buy an Apartment in Paris. For financing specifics, see French Mortgages in 2025: Why Non-Resident Buyers Should Consider French Financing, and for what happens after closing, see Property Tax in France for Non-Residents.
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