Department in nouvelle-aquitaine to increase property purchase fees

LOCAL COUNCILS HAVE BEEN GIVEN ABILITY TO RAISE FEES IN NEW BUDGET Purchasing property in many areas of France is set to become more expensive in the coming months as departments are

permitted to increase notaire fees paid on acquisitions. The Charente-Maritime department has become the latest to confirm they will increase the ‘transfer tax’ element of ‘notaire’ fees –

droits de mutation à titre onéreux (DMTO) - to 5%, up from the current maximum of 4.5%.  The increased rate will apply on property purchases made in the department after April 1.  Despite

their name, notaire fees are collected by local departments on property purchases and are a source of local funding. France’s 2025 budget, which is now final having been published in le

Journal Officiel, gives departments the right to increase DMTO fees, provided the departmental council approves the decision.  Although the increase is optional a majority of departments are

expected to vote for the change as a means to increase revenue amid local funding cuts of around €2 billion included in the budget. Currently all but two departments have the 4.5% rate in

place. Paris was the first department to officially announce it would increase the fees. Several departments including Essone and Ille-et-Vilaine will bring in the increase from April 1. 

Read more: Buying a property in France may cost more from April as ‘notaire fees’ allowed to rise Notaire fees represent between 7% to 8% of the purchase price for a non-new build, and 3%

for a new-build property.  The increase in fees to 5% roughly corresponds to a €500 increase in tax per €100,000 spent on a property.  However, in many cases first-time buyers are exempt

from the raise. Read more: Are there any ways to reduce notaire fees when buying a property in France? LOCAL COUNCILS MUST APPROVE CHANGE A resolution to apply the increase in the western

department was passed at an extraordinary meeting of the conseil départemental (departmental council) in La Rochelle. These councils meet at least three times a year, but can call additional

sessions to discuss urgent matters, such as an increase to the fees.  Council leaders said the session was called and the fees increased due to “a precarious financial situation” according

to media outlet Le Parisien.  The 5% cap will remain until 2028, when it can be altered again.  Read more: When will ‘notaire fees’ for property purchases increase in France?