why the “all-inclusive” bill for your real estate purchase could increase

To appease the anger of the departments, concerned about their budget, Prime Minister Michel Barnier announced on Friday November 15 the possibility of raising the ceiling on taxes levied on real estate transactions. In short, increase notary fees. We'll explain it to you.

What are notary fees?

The term is “improper”, respond the Notaries of France. Indeed, during a real estate transaction, the buyer pays acquisition costs which are added to the price of the property. These are taxes levied by the State at the time of the sale and not a sum received by the notaries. They consist of duties owed to the Public Treasury: transfer (or registration) fees, land registration tax and VAT. But also the reimbursement of the costs incurred by the notary to prepare the file, prior to signing the deed of sale, and, finally, the remuneration of the notary, defined by a State decree since 2020.

Acquisition costs depend on the value of the property purchased. They are around 8% in old real estate and 2 to 4% in new properties. For more precision, the Notaries of France offer a simulator on their website.

Also read. Real estate loan: how to keep your old rate when purchasing a new property?

What could change in 2025

Prime Minister Michel Barnier plans to raise the ceiling on transfer taxes for valuable consideration (DMTO) to relieve the finances of the departments. The departments can set a rate of up to 4.5% of the purchase price of an old property. It could be increased by 0.5 points for five years.

DMTOs represent a fifth of departmental revenues and have fallen sharply over the past two years in the face of the real estate market crisis.

The implementation of this measure will depend on the outcome of the debates on the 2025 Budget and the decision taken by each department which will be free to transpose it or not. If this is their choice, the increase will not be effective before spring 2025.

What effect on the wallet?

This increase “risks discouraging first-time home buyers and jeopardizing the timid recovery observed following the fall in interest rates”estimates Loïc Cantin, president of the National Real Estate Federation (Fnaim), who also recalls “the surge in property taxes”. On a transaction worth €250,000, the note could increase by €1,250, according to calculations by broker Cafpi.