The increase in transfer taxes for valuable consideration (DMTO), more commonly known as notary fees, is one of the measures mentioned by the government to deal with the drop in community revenue, particularly since the abolition of the housing tax of definitively for main residences since 2023. These fees are taxes levied on real estate transactions, representing 7 to 8% of the total cost thereof.
Note that part of these fees is paid to notaries, another to the State and 3.8 to 4.5% goes to local authorities. Notary fees have fallen relatively in recent years, due to the crisis affecting the real estate sector. While they reached 16.4 billion euros in 2022, they fell to only 10 billion euros in 2024.
In order to help them increase the budgets of the departments, the government says it is in favor of increasing transfer taxes for payment (DMTO). The Prime Minister, Michel Barnier, in fact announced, on November 15, at the Assembly of Departments, the possibility of increasing notary fees. Thus, while currently, the maximum rate of transfer duties for valuable consideration (DMTO) is 4.5%, the tenant of Matignon offers communities the possibility of raising this rate up to 5%, an increase of 0.5%. This increase will be effective for a period of three years. Concretely, the departments will be able to increase notary fees if they wish. As they can also maintain the current rate.
First-time buyers and new property buyers will not be affected by the increase in notary fees
However, this announcement sparked a reaction from real estate professionals who consider that the increase in notary fees could have harmful repercussions on the real estate market, already weakened by the drop in supply. “Owners should not be the permanent adjustment variable for the cash flow concerns of local authorities and the State,” reacted the National Real Estate Federation (FNAIM). For her part, the spokesperson for the broker Meilleurtaux denounced “bad news for first-time buyers who are already struggling to have the contribution which finances notary fees”.
It seems that the message has gotten through. The Prime Minister is backtracking on this measure or is, at least, proposing adjustments. In fact, Matignon specified on November 22 that first-time buyers will not be affected by the increase in the ceiling that the departments may decide. This measure will not apply to new properties either, whether the buyers are first-time or second-time buyers. According to several media, this is a subamendment allowing this exemption, which should be tabled and debated in the Senate in the coming days.
