The new notary fees for 2014

Isère, Paris, Morbihan, Mayenne and Yvelines.Remember this list of 5 departments as these are the only one which won’t witness an increase of the fees collected by the notary when you purchase a property.

What is commonly called the “notarial fees” is in fact a bit more.
The percentage of transaction’s price notaries earn, the duty on onerous transfer of property, is divided into two beneficiaries:

–          The notary himself (or his office)

–          The local authorities (stamp duty)

You might be afraid that notaries have increased the amount they perceive but it has nothing to do with them. Since Saturday 1st of March 2014, 66 French departments have increased the tax they perceive on every real estate transaction from 3.80% to 4.50%.

“Why such a measure in a property market which goes across a feverish period?” You might wonder, and that is would be a very relevant question.

The answer is that this tax is a solution the government and the local authorities have found to support the numerous public expenses regarding a social purpose like (Active Solidarity Incomes or allowances).
This is an alternative to an increase of an income tax which could have engendered a revolution and would have betrayed the current president campaign promises.

To illustrate this governmental decision, let’s take two examples.
Somebody who wants to buy a property in Nice (where the increase occurred) for €400,000 will have to spend €2,800 more than last year.
Another person who wants to buy a house in the Ain department (North of Lyon) will have to pay €1,400 to sum he would have paid before March 2014.

You can find below a map of France from the French newspaper les Echos that shows in grey the departments where the increase already occurred and in white the one where the increase is planned to happen soon and, finally, our five resistant!

If you want to buy a property in Paris, the current mayor and his council have decided not to follow this politic. Though elections are occurring soon in France, the two candidates to his succession will keep the “notary fees” to their current level.
As the notary fees will remain the same, you can take your time to think if you consider purchasing a property.

However, if you want to envisage this option in a “still grey” department (30 areas), I highly suggest you to seize this opportunity to buy the property of your dreams while the local authorities haven’t increase the amount of money yet.