Many people dream for the day when they can finally move abroad to start a new life. It’s common for people to make such a move after retiring, although some people prefer to make such a lifestyle change much sooner. However, with Brexit currently in a transition period and with so much still unknown, there is a lot of confusion for UK residents, including British nationals, British people, and British residents asking the question, ‘Can I buy property in France after Brexit?’.
Brexit officially began on January 31, 2020, and the transition period is scheduled to last through to the end of the year, if not longer. With so many British expats living in France, and many more hoping to buy holiday or full-time property there, including holiday home buyers and property buyers, a lot of questions have been raised about the pre- and post-Brexit real estate markets and buying processes. France’s cultural richness, historical depth, and regional diversity make it an especially attractive destination for buyers. The good news is that Brexit doesn’t have to hamper your goal of moving to France, especially if you’re able to act within the next few months. Plus, even if you have no choice but to wait, there are still post-Brexit moving options to consider. UK citizens retain the legal right to buy property in France, regardless of the UK’s status in the European Union. As a founding member of the European Union and the Eurozone, France remains integrated into the broader European economic and political framework, which can affect property transactions for both EU and non-EU buyers.
While the answers may change over the course of this year, so if you are thinking of buying property in France after Brexit, here’s what we know so far.
Table of Contents
Is the Brexit Transition Period Definite?
Keep in mind that there is a possibility that the transition period will be extended, which could give you a bit more time to make moving-related decisions. The original plan was for the transition period to last for two years, giving residents ample time to plan ahead. However, after several Brexit delays, the transition period was shortened.
Are Brits Still Buying Property in France?
While fewer British clients are seeking holiday homes in France since the Brexit referendum, the percentage of those searching for full-time residences has gone up, meaning that more people are hoping to permanently relocate from the UK to France. Property prices and the average price per square metre in France have played a significant role in influencing the decisions of British buyers, as they compare costs across different cities and regions.
And while the overall number of Brits who want to buy property in France has gone down a bit, those who are still searching are committed and serious about the move, more so than pre-referendum. Many buyers are especially interested in popular regions such as the French Riviera, Provence, and the Alps, which are known for their high demand and attractive lifestyle.
To find properties that meet their needs, buyers often use online tools and work with property agents to explore the best opportunities available.
Should I Buy a House Before or After Brexit?
The expected duration of the Brexit transition period is roughly the same as the time it takes to buy a house, so if you’re hoping to purchase before Brexit is finalised, your search has to start soon.
There is a step-by-step process involved in buying property in France, from setting your budget to completing legal formalities and transferring funds. The home buying process is longer for people who live in a different country because there’s less familiarity with France’s regions, and there’s also less available time to tour properties.
When making an offer, it is crucial to verify the title deed to ensure legal ownership and avoid potential complications before proceeding. When time isn’t on your side, the best solution is to work with a buyer’s agent who has expertise in France. This can speed up the process of doing in-depth research, making connections and finding hidden gem properties. At the completion of the purchase, you will sign the final contract in the presence of a notaire, which finalizes the sale and transfers ownership.
Furthermore, the Brexit transition period allows Brits to retain their EU rights through the end of the year, which includes the freedom of movement right. If you move to France before the end of 2020, you’ll take your EU rights along with you, including those affecting healthcare, pensions and residence.
What Happens If I Can’t Move Before the Transition Period Ends?
If you’re unable to buy French property and relocate before the end of the year, you’ll still be able to purchase French property as a non resident buyer, but the process will be different since you won’t be an EU citizen any longer.
Non residents can still purchase property in France, but may face additional administrative steps, such as extra paperwork, legal considerations, and possible tax implications.
Owning property in France will continue to be legal, though, since French property ownership is under the country’s control, not the EU’s (and that includes property you plan to rent out). Property owners in France, whether residents or non-residents, benefit from strong legal protections and rights.
What is the Buying Process in France?
Navigating the buying process in France can seem daunting, especially for foreign buyers unfamiliar with the French property market. However, with the right support and a clear understanding of each step, purchasing property in France can be both straightforward and rewarding.
The journey begins with finding the right property. Many buyers choose to work with a real estate property agent who understands the local property market and can help you identify properties that match your criteria, whether you’re searching for a holiday home, investment property, or a permanent residence. Property agents can provide detailed information about available properties, guide you through viewings, and help you negotiate the best deal.
Once you’ve found your dream property, the next step is to make an offer, typically through your real estate agent. If your offer is accepted, you’ll sign a compromis de vente, a preliminary contract that sets out the terms of the sale, including the purchase price and any conditions that must be met before completion. This contract is legally binding, so it’s important to review it carefully and seek legal advice if needed.
As a non-EU citizen or British national post-Brexit, you may need to obtain a long-stay visa and, eventually, a residence permit if you plan to live in France for more than 90 days at a time. The application process for these permits requires proof of sufficient income and, in some cases, health insurance. Opening a French bank account is also essential, as it will be used for the property purchase and ongoing expenses.
Understanding French property law is also important, as there are several taxes and fees associated with buying property in France. Notary fees and stamp duty (known as droit de mutation) are significant costs to factor into your budget, typically amounting to around 7-8% of the purchase price for existing properties. You’ll also need to consider local taxes, such as taxe foncière (land tax) and taxe d’habitation (residence tax), as well as potential capital gains tax if you sell your property in the future.
The purchase process is overseen by a notaire, a public official responsible for ensuring the sale complies with French law. The notaire will handle the legal paperwork, register the property with the land registry, and ensure that all taxes and fees are paid. Legal fees and notary fees are usually paid by the buyer, so it’s important to budget for these expenses from the outset.
For those interested in investment property or generating rental income, France offers a range of opportunities, from city apartments to rural holiday homes. It’s wise to research the rental market in your chosen area and seek advice on the tax implications of rental income. Exchange rates and transfer fees can also impact the overall cost of your property purchase, so it’s worth consulting with financial experts to get the best deal.
In summary, buying property in France as a British buyer or non-EU citizen involves several steps and administrative procedures, but with the guidance of an experienced real estate proeprty agent and a clear understanding of French property law, you can navigate the process with confidence. Whether you’re searching for a holiday home, investment property, or a new place to call home, the French property market offers something for everyone—making your dream of owning property in France a reality.
What Else Should I Know About Purchasing Property in France During Brexit?
The French government plays a significant role in regulating property purchases and residency, with specific policies affecting both foreign buyers and French residents.
If you plan to become a French resident, you may benefit from access to things like local healthcare, education, and financial support services, but you must also meet certain residency requirements.
For those considering a long-term stay, obtaining permanent residency in France involves meeting eligibility criteria, submitting required documentation, and demonstrating language proficiency, which grants additional travel and residency rights.
When applying for visas and residency permits, keep in mind that there are several categories, including employed, self employed, student, and family reasons.
If you are a UK citizen, you should apply for the Global Health Insurance Card, which replaces the European Health Insurance Card (EHIC) post-Brexit and is essential for accessing medical benefits abroad.
If you are interested in different property types, you may also want to buy land in France. This process requires understanding local regulations, planning permissions, and often involves working with real estate agents or advisors.
When it comes to financing your property purchase, French banks offer mortgage options to foreign buyers, with competitive rates and specific criteria regarding deposits and currency exchange.
Let’s go over some of the different factors to consider when deciding if you should move before or after the Brexit transition period.
Driving
If you become a French resident before the transition, you can switch your UK license over to a French permit. There’s a backlog, though, and even if you request the change now, you may not be approved for several months, which could mean going through the process post-transition – and it’s unclear exactly what that could involve. Once the transition period ends, you may need an international driving permit to drive in France, which you can get over-the-counter from a British post office.
Health Insurance
It’s unclear if Brits will be allowed to use their European Health Insurance Card (EHIC) post-transition. The global health insurance card is the new document UK citizens should apply for to access healthcare in France after Brexit. If you can’t continue using it, you may need to purchase travel health insurance when visiting France, even if you’ll be living there for part of the year.
Mortgages and Rental Property Tax
It’s possible that non-EU residents will not be allowed to borrow as much for a French mortgage as EU residents, though the debate is still out on this. French banks offer mortgage options to non-EU buyers, but they have specific criteria such as higher deposit requirements, proof of income, and may consider currency exchange risks. Additionally, after the transition, Brits may be subject to double taxation on rental property.
Pensions
If you’re currently retired, you can receive your pension in France no matter when you move, and you may also qualify for additional French benefits. French residents are often eligible for a wider range of pension and social support services, making residency status important for accessing these benefits. If you move before the end of the transition and become a French resident, your pension will continue as usual and that’s true if you retire after moving or after the end of the transition.
However, it’s important to know that if you move post-transition, your pension may be up-rated each year. There hasn’t been a final decision made, but it’s a possibility.
Visas and Residencies
While it’s still unclear exactly how UK residents will be treated after Brexit, non-EU citizens must obtain a long-stay visa from their home country before moving to France. Non-residents who wish to stay in France for an extended period must apply for the appropriate visa and have it validated as a residency permit within three months of arriving in France.
In terms of the right to residence, you will not need a visa if you stay in France for less than half a year, which means being there for 90 out of every 180 days. That means you can stay in France for approximately three months at a time before returning home for approximately three months, and you won’t need a visa to do that. This is good news for anyone buying a holiday home in France, whether that’s before or after the transition.
If you’ll be living in France full-time or for more than half the year, though, and if you cannot move before the transition period ends, you’ll need a visa. There are several types of residency permits available, including those for employed, self employed, student, and family reasons. Over time, it is possible to apply for permanent residency in France, which involves meeting eligibility criteria, submitting required documentation, and sometimes demonstrating language proficiency.
Becoming a French Resident
If you hope to become a French resident and once again enjoy the benefits of being part of the European Union, the process can take a long time. You must meet one of the following:
- Live as a resident of France for five years (which may make you eligible for permanent residency, granting you long-term rights and benefits as one of the french residents)
- Live as a resident of France for two years, and postgraduate studies were completed at a French university
- Be married to a French resident for four years
- Have children who were born in France – you can apply for citizenship when they turn 13
There are also different residency permit categories, including routes for the self employed, employed, students, and family members. You may eventually become a bona fide French resident, but it’s not a short-term strategy that will help when deciding when to move to France. Plus, since it’s such a long process, moving to France pre-transition and retaining your EU rights is the simpler, more dependable option.
Are British Expats Who Currently Live in France Impacted?
According to the Brexit Withdrawal Agreement, Brits who are lawful residents of another EU country, like France, are allowed to stay there. This applies to British nationals, British people, British residents, and UK citizens who established residency before the end of the transition period, but their residency rights have changed post-Brexit. The French government now regulates the residency status of UK nationals, requiring additional administrative steps and compliance with new legal requirements. However, it’s important to understand that being a legal resident of France is different from simply remaining in France for an extended period of time. To be considered an official resident of France, certain criteria must be met. For example, you have to prove that you’re financially self-sufficient.
Final Thoughts About Buying Property in France During Brexit
With the UK being part of the EU, there’s a lot of freedom of movement. When those rights end in 2020, though, what will happen, and what hoops will you have to jump through to travel to or live in France?
The main problem is that it’s still unknown what will happen post-transition, so there are no guarantees about what the process or regulations will be like. It’s likely that moving post-transition will be more complicated and expensive than moving now, which is similar to what Americans or Australians go through when relocating to Europe.
If you want to buy a holiday home in France that you’ll only spend time in for part of the year, when you buy won’t matter much. You won’t be allowed to work in France if you only travel there infrequently, but you probably won’t want to work while on holiday anyway. You also may have to take out private travel insurance for your trips.
While it will be easier to move to France now instead of waiting until Brexit is finalised, it won’t be impossible to move post-transition. If you’re able to move to France before the transition period is over, you’ll retain your EU rights for life, as will your spouse and your dependents.
Home Hunts are here to help you through the process of buying property in france. If you would like to speak to one of the team to discuss your needs or just to have a chat about the market, you can call us on +33 970 44 66 43 or send us a mail to [email protected]. If you just want to browse through thousands of beautiful French homes, visit our website at www.home-hunts.com or follow us on Facebook or Instagram.
