Buying a holiday home in France

My experience of purchasing a holiday home in France 

I’m very fortunate to be on the verge of signing for our own French holiday home. The search took almost two years and spanned much of southern France. We finally found what we were looking for in the Lot, a lesser-known department north of Toulouse. We fell in love with a small, easy-to-maintain rural cottage with a swimming pool, a plot of manageable land and the most peaceful views across a patchwork of green farmland. 

Where we’ve brought isn’t the Mediterranean coast, nor is it the Dordogne (in fact, the Lot is nestled between the two) and because of that our budget has gone much further — we’ve paid half the price of what we would have paid for the same property in more popular areas such as the Var and the Bouches-du-Rhône. 

But the roads that lead there are good (and Toulouse airport is an hour and a half away). There’s a year-round community and an active international crowd, which were important criteria for us. The real estate agent also pointed us in the direction of the local businesses who can look after the property when we are not there as well as manage it should we choose to rent it out on sites such as Airbnb. We can’t wait to start spending our holidays there.

Residency rules after Brexit

It’s a hot topic of discussion in expat forums: can UK citizens buy property in France after Brexit? The answer is, thankfully, yes — but it is important to keep in mind the following:

If you were living in France before December 31, 2020, you maintain your status as an EU citizen, although it must be formalised through the application of a residence permit linked to the UK withdrawal agreement. If you settled in/or plan to settle in the country after that date, you must apply for a non-European national residence permit.

If you do not want residency but are still interested in buying a holiday home in France after Brexit, then, as a non-EU passport holder, you can spend up to 90 days in any 180-day period in the Schengen area. For stays in France between three months and a year, you can apply for a visa de long séjour (as long as you meet the required criteria).

Make sure you bookmark both the relevant French and British government website pages to keep informed of all updates.

Best types of property for a holiday home

France offers such diversity in terms of landscapes, culture and experiences and this is reflected in the types of properties you can purchase. Perhaps you’re dreaming of an alpine chalet for cosy winters and fresh summers or a lock-up-and-leave apartment close to the beach or in a city centre that you plan to use as a base for lots of outdoor exploration. Or, you’re in the market for a run-down Château that you can turn into your very own Escape to the Château.

For many, however, the general definition of a holiday home is a single-standing property that comes with land and, for the summer months, a swimming pool. With enough bedrooms to accommodate you and any guests who may come and visit. Where winters are spent around an open fire, and summers are full of the sounds of laughter coming from the pool area. You’ll find this type of home all across the country — look for the term plan-pied on a real estate listing. 

Lock up and leave options

Security is something to keep in mind when you buy a holiday home in France, especially if it is going to sit empty as much as it will be in use. Apartments are often a great choice for this very reason — it’s worth remembering, however, that there are usually monthly maintenance charges levied by the syndic or building managers. For standalone properties that you plan to lock up and leave for extended periods, check for metal shutters, secure locks on all doors, a gate, and a cover or appropriate protection for a swimming pool (a legal requirement). You may prefer to buy in a small hameau or hamlet made up of a few properties, where your neighbours are full-time residents. 

Best places to buy a holiday home in France

When it comes to the best places to buy a holiday home in France, there’s no right or wrong answer. Numerous reasons could influence your decision, from budget to proximity to certain attractions/services to friends or family already in the area — the list goes on. 

But there are universal considerations, especially when considering a holiday home as an investment. Will the property hold value? Will there be demand for it on the rental market? How close is the location to air and rail and other transport connections? 

Real estate experts will tell you that you don’t buy property in France with the expectation of significant market appreciation — it’s a lifestyle choice rather than an investment. Prime markets, however, are the Alpes-Maritimes and in Paris (where a property takes an average of three weeks to sell). Check out Kyero’s guide to Côte d’Azur and the best destinations to buy a holiday home in the south of France.

When it comes to buying a holiday home in France, Kyero’s data reveals that the Alpes Maritimes is by far the most popular region in terms of both enquiries and eventual purchases, followed by the neighbouring Var department and the Dordogne, in the southwest of the country. In terms of cities, Nice and Cannes on the French Riviera receive the most search enquiries.

Other highly sought-after areas include the Pyrenées-Orientales, Aude and Hérault in the southwest. All three are considered Mediterranean regions with established transport links but where prices have yet to reach the levels of the French Riviera. In the Nouvelle-Aquitaine, the charm of the Charente and Charente-Maritime, on the Atlantic coast, also attracts interest from international buyers. Check out Kyero’s Best destinations to move to in France.

Financial considerations - insurance, taxes, mortgages

You’ve agreed to a purchase price on a property. Great! Along with the notary fees to complete the sale (a one-off payment as part of the overall sales transaction that usually equates to 8% of the purchase price on an old property), there are the ongoing costs of property ownership in France, from the running costs (electricity, water, gas, internet etc) to insurance. Home insurance is mandatory. There are two types: Assurance responsabilité civile (civil liability insurance), the bare minimum, and assurance multirisque (multi-risk insurance), which offers more comprehensive coverage.

Another insurance to factor in is mortgage insurance if you are borrowing to finance the purchase. Mortgage rates are very low at the moment in France and lenders will consider the potential rental income of a property when assessing a mortgage application. If you are borrowing as a non-resident, you will need to speak to a specialist mortgage advisor — not all French banks offer non-resident lending.

France has two annual property taxes to be aware of: Taxe d’Habitation (rates) and Taxe Foncière (property tax). It is important to note that if you are renting out your property long-term, the obligation falls to the tenant to pay the Taxe d’Habitation (as long as they were occupying the property on the 1st of January of the year in question). France also levies a capital gains tax on the sale of a second home and, as of January 1 2021, requires any non-resident selling a second property for more than €150,000 to appoint a fiscal representative.

You should also speak to a financial expert about estate planning to avoid any buying property in France pitfalls and to understand French inheritance laws. The UK government website has a handy list of English-speaking lawyers in France.

Options for renting out your holiday home, AirBnB etc.

The rise of websites such as Airbnb has made the decision to buy a holiday home in France much easier for people who may also need or want their property to generate an income when they are not using it. As a general rule, you can find English speakers in most regions who offer property management services to look after bookings, turnovers and maintenance when you are not there. 

Other popular websites to consider listing your property home on include VRBO and Abritel (which is very popular with a French audience). There are also more boutique sites such as Sawdays, where your application to list your property has to be approved. One other consideration is home-swap style websites such as homelink.org (which I can personally recommend). Non-simultaneous house swaps are a great way to leverage ownership of a property you may not always be using.

Summary

If there’s one lesson I can take from buying a holiday home in France, it’s that you have to be patient. For both our primary residence and our holiday home, the time lapse between when we viewed the property to when we officially took ownership was over six months — however, both have been purchased with mortgages. If you are a cash buyer, you can expect the process to be somewhat faster. When you’ve found the right French holiday home for you, however, the wait is worth it.

Ready to make that house purchase in France? Find your perfect French property with Kyero.