Small increase in notaire fees for property buyers expected in france

THE FEE IS EXPECTED TO GENERATE REVENUE OF €30 MILLION A YEAR TO FIGHT AGAINST COASTAL EROSION Notaire fees are likely to rise very slightly for property buyers in France after parliament

voted for a small extra tax to help fund the fight against coastal erosion, which is threatening thousands of homes. The Assemblée Nationale voted on Friday, November 8 for an amendment to

the 2025 draft budget, which will add a small extra tax to the ‘droits de mutation à titre onéreux’ (DMTO), the mandatory notaire fees. The draft budget has yet to be approved by the Senate,

but this amendment appears likely to be approved, as it was put forward by an MP from the government's group in the assembly. If the budget and amendment are also passed by the Senate,

it will become law. DMTO fees are mainly made up of local and national taxes required for the transfer of property ownership. They usually represent 7 to 8% of the purchase price in older

properties, and 2 to 3% in new-build properties.  Read also: Explainer: Role of notaire in France and what to do if not happy Read also: 13 things you can do through a French notaire apart

from buy a house  The new amendment was tabled by Gironde MP Sophie Panonacle (Ensemble pour la République), and adds a small fee to the DMTO “to finance action to prevent coastal erosion”.

The issue of coastal erosion hit headlines in her department in early 2023, when the 1960s ‘Le Signal’ building, which had been on the beachfront at Soulac-sur-Mer, was demolished at a point

when the sea was just 20 metres away, and the building was at risk. ‘TAX WILL NOT AFFECT BUYERS’ BUDGETS’ Yet, Ms Panonacle has sought to reassure buyers.  “[The tax] is very limited, and

will not affect buyers’ budgets,” she states in the amendment’s explanatory memo. “It would amount to €10 per [a property cost of] €100,000. A property purchase of €250,000 would require an

extra tax of just over €20 for the buyer.  Yet, Ms Panonacle states that the new tax will generate national revenue of around €30 million a year, which will be allocated to a new coastal

erosion fund. The fund will finance measures such as land acquisition, protection, and property relocation projects.  Read also: Online map shows which French cities may be submerged by sea

in future  Read also: COP26: New map shows 20% of French coast at risk from erosion  The new tax comes amid news that a farming couple has become the first household to be forcibly displaced

by authorities in Normandy, due to the encroaching sea rendering their property unsafe. Read also: Farming couple must move, first people displaced in Normandy by climate change  And by

2028, a total of 1,046 homes in France could be at risk of coastal erosion problems, estimates the Centre d'études et d'expertise sur les risques, l'environnement, la mobilité

et l'aménagement. It has also said that by 2050, this is set to increase to 5,208 - including almost 2,000 second homes. Additionally, an increase in the number of natural disasters

and weather-related damage claims is contributing to a hike in home insurance costs in France, which are expected to continue rising in the coming years.