It was a request from the departments. “An increase of one point in transfer taxes for valuable consideration (DMTO) (notary fees, Editor’s note) – would also give us some oxygen”explained François Sauvadet, president of the Côte-d'Or departmental council and the Assembly of French departments (ADF), during the meetings in Angers (ADP), from November 13 to 15. “Eighteen months ago, fourteen departments were in an alarming situation: there are around sixty today”he pleaded.
The request was heard. During his speech to Congress on Friday, November 15, Prime Minister Michel Barnier announced the possibility of raising the ceiling on taxes levied on real estate transactions.
Transfer taxes for valuable consideration (DMTO), often called “notary fees” by misnomer, constitute the majority of the costs paid for the purchase of real estate. They represent a fifth of departmental revenues and have fallen sharply over the past two years with the real estate market crisis.
An increase of 0.5 points to 5%
The departments can set a DMTO rate of up to 4.5% of the purchase price of an old property, to which are added taxes collected by the State and the municipalities. Michel Barnier proposes to raise this ceiling by 0.5 points, to 5%, for three years, and leaves the departments the choice of whether or not to take up this option.
If François Sauvadet is satisfied to have been ” heard “this measure, on the other hand, makes real estate professionals bristle. “The intention is laudable for local authorities”but the increase in DMTO “risks discouraging first-time home buyers and compromising the timid recovery observed following the – beneficial – drop in interest rates”estimates Loïc Cantin, president of the National Real Estate Federation (Fnaim).
For Maël Bernier, communications director of the broker Meilleurtaux, it is a “very bad news for younger buyers”for whom the “first purchase” sera “even more difficult”she reacted on X.
Also worried about the real estate purchasing power of first-time buyers, Caroline Arnould, general director, calculates that the 0.5 point increase in DMTO “represents an additional €1,250 for an average credit of €250,000”.
An “acceptable effort”, according to Michel Barnier
For its part, the Superior Council of Notaries “takes note” of this announcement and waits to be able “measure the impact on the real estate market, which has not yet recovered”underlines its spokesperson Céline Deschamps.
“We must remain vigilant (…) on the conditions of the recovery” of the real estate sector, currently ” off “also recognized Michel Barnier. He nevertheless considers that “the indicated effort is acceptable from this point of view”.
François Sauvadet refutes fears of an acceleration of the real estate crisis. He recalls that “new construction is not impacted” and considers it understandable to pay “a few hundred euros more to contribute to cohesion”.
