Why are transfer fees high in France? And in other countries? Concrete examples
Transfer fees in France, also called notary fees, can seem high due to the combination of several taxes and costs associated with real estate acquisition. The main components of notary fees include the land registration tax, the additional tax, notary fees, disbursements, and other miscellaneous costs.
- Property Advertising Tax and Additional Tax: These taxes represent a significant portion of notary fees. The land registration tax is proportional to the sale price of the property, and it varies depending on whether it is an old or new property. The additional tax is added to the land registration tax.
- Notary's Fees: Notaries receive fees which are regulated by the State. These fees pay for the services of the notary.
- Disbursements and Miscellaneous Costs: Disbursements include costs advanced by the notary on behalf of the buyer, such as costs related to administrative procedures and formalities.
In other countries, the fee structure associated with real estate transactions may differ. For example, closing costs in the United States typically include title, insurance, and recording fees, but they are not as regulated as in France.
France :
- Sale price: €300,000
- Notary fees (estimate): Around 7 to 8%, or €21,000 to €24,000
UNITED STATES :
- Sale price: $300,000
- Closing costs (estimate): About 2-5%, or $6,000-15,000
Germany :
- Property transfer tax (Grunderwerbsteuer): Varies between federal states (3.5% to 6.5%)
- Example: €300,000 property in Bavaria, costs around €15,000.
United Kingdom :
- Stamp Duty Land Tax: Varies depending on price brackets
- Example: House £400,000, tax around £10,000.
Canada:
- Transfer taxes: Vary by province
- Example: Property of 500,000 CAD in Ontario, tax of approximately 12,950 CAD.
Australia:
- Property transfer tax (stamp duty): Imposed by states
- Example: AUD 600,000 house in New South Wales, tax approximately AUD 22,490.
Japan:
- Transfer tax: Relatively low, often less than 1%
- Example: Property of 100,000,000 JPY, transfer fee of approximately 1,000,000 JPY.
Singapore:
- Document Fees (Buyer's Stamp Duty): Imposed for real estate transactions
- Example: Property of SGD 800,000, rights of approximately SGD 24,600.
The examples above highlight the diversity of transfer costs around the world. Differences are influenced by tax policies, local regulations, and real estate market practices specific to each country. Understanding these variations is crucial for international buyers to make informed decisions when purchasing real estate abroad. Remember to consult a local professional for advice specific to your situation.
Example Sale of an old apartment in department 06 for €1,500,000
Transfer duties, notary fees: definition, calculation
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