Among the measures mentioned by the government to make an effort of 60 billion euros in savings is the increase in transfer taxes for valuable consideration (DMTO), more commonly known as notary fees. These fees are taxes levied on real estate transactions, which represent 7 to 8% of the total cost thereof.
Part of its fees is paid to notaries, another to the State and 3.8 to 4.5% goes to local authorities. In recent years, due to the crisis affecting the real estate sector, notary fees have fallen relatively. While they reached 16.4 billion euros in 2022, they fell to only 10 billion euros in 2024.
With the abolition of the housing tax, communities have seen a drastic decline in their finances. In order to help them increase their budget, the government says it is in favor of increasing transfer taxes for payment (DMTO). This was confirmed by Prime Minister Michel Barnier on November 15 at the Assembly of Departments. However, this measure is far from unanimous. According to the president of the National Real Estate Federation (Fnaim), Loïc Cantin, this increase could dissuade buyers from making a purchase. Consequently, it risks slowing down the resumption of purchases observed since the drop in interest rates on bank loans.
How much will notary fees increase?
Currently, the maximum rate of transfer duties for valuable consideration (DMTO) is 4.5%. Michel Barnier 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. This increase also worries the communications director of the broker Meilleurtaux, Maël Bernier, who did not fail to share her opinion on The purchase will be more complicated.
For her part, the general director of the broker Cafpi estimates this increase at “an additional 1,250 euros for an average credit of 250,000 euros,” she told AFP. Consequently, the increase in notary fees could have harmful repercussions on the real estate market, already weakened by the drop in supply. Finally, the Superior Council of Notaries first wishes to “measure the impact on the real estate market, which has not yet recovered”, as its spokesperson Céline Deschamps indicated to AFP.
