Property in France - things to think of before you sign.

If you own a house in France, you will be liable to inheritance tax on it whether you live there or not. The country where you pay it is decided by where you're domiciled (living permanently). If you’re domiciled in France at the time of death, your worldwide estate will be liable to French tax: so it’s important that your domicile is clear. 

It is vital to decide before buying a French property how you wish to dispose of it should you die. You may wish to put a clause tontine in the purchasing contract (acte de vente) whereby the property goes to your spouse rather than your children (which is the norm in French law). Again, you may wish to buy it through a French Limited company so that the property is held as shares, which can be disposed of under the laws of your own country. There is more about this in the technical books we recommend.

Many people buy old properties cheap, without knowing how much they will cost to renovate. Of those people, lots sell later at a loss. I recently spoke to a lady who had bought a property in the north of France from a doctor who had already spent a fortune on renovation. The reason the doctor had sold it was because the cost and effort of the work had caused his wife to have a nervous breakdown... 

Unless you are able and competent and have the time to do the work yourself (is that how you want to spend your holidays for the next few years?), you need to get estimates for renovation work. 

Another thing to remember is that French properties are not subject to survey by the mortgage lender before sale, so you can’t expect someone else to notice the things you don’t. The buck stops with you.

Location, location, location

This is crucial if you intend to live in France. One of the most common and serious mistakes that the newcomer to France makes is to buy in an isolated position. Learning French is difficult enough. The foreigner stuck up a farm track miles from anyone else is likely to find it impossible.

Similarly, if you are thinking of operating a bed and breakfast business the house should be on, or signposted from, a well-used road. Conversely, if you're looking for a holiday home you'd be unlikely to go for a main road.