Reducing Notary Fees on a Luxury Purchase
For a luxury property, notary fees represent a considerable sum—7 to 8% of the price for existing properties, the bulk of which comes from transfer taxes. Only one legal mechanism allows for a significant reduction: the deduction of furniture. However, it is essential to understand the precise method and the applicable thresholds.
What notary fees actually cover
Notary fees consist of three distinct components. Transfer taxes (DMTO), collected by the state and local authorities, represent the largest share—approximately 5.8% of the price, depending on the department. Next come the notary's fees, their own remuneration, calculated according to a regulated, sliding scale, and disbursements, expenses advanced on behalf of the buyer (planning documents, land registry, formalities). Only the transfer taxes apply exclusively to the real estate value of the property—walls, land, and elements inextricably linked to the building.
The legal lever: removing furniture from the calculation
Movable property is not subject to transfer taxes. By precisely listing its value in the deed of sale, this sum is deducted from the property price used as the basis for the calculation — a direct and perfectly legal saving, without changing the price paid to the seller.
Concrete example : on a property worth €2,000,000, if €80,000 worth of furniture (4% of the price) is valued separately, the transfer tax is calculated on €1,920,000 instead of €2,000,000. With a rate of 5.8%, the savings amount to approximately €4,640—an amount that increases automatically with the value of the property and the furniture in question.
Tolerance thresholds to know
The tax authorities apply an implicit tolerance rather than a strict legal limit. A deduction representing 3 to 5% of the sale price is generally accepted without particular difficulty. Above 10%, the risk of reclassification by the tax authorities increases significantly, and each item must then be individually justified, with the necessary support from an auctioneer for valuable items—antique furniture, works of art, collectibles, which are particularly common in high-profile transactions.
Furniture or fixtures: the distinction that changes everything
Only movable furnishings —items that can be freely moved without damage or loss of functionality—are eligible for this deduction: furniture, freestanding appliances, removable light fixtures, unsealed curtains and drapes, removable blinds and roller shutters, audio and television equipment, and garden furniture. Conversely, anything considered fixtures by destination remains included in the property price, even if technically removable: custom-built fitted kitchens, built-in wardrobes, bathroom fixtures (sink, bathtub, shower), wall-mounted boilers, tiles, and wall-mounted radiators. The tax authorities may reclassify any element deemed too integrated into the building, including a range hood that is simply screwed on.
The method to follow to ensure the deduction is valid
The furniture inventory, dated and signed by both parties, must be attached to the sales agreement and then included in the final deed of sale—a declaration made after the fact is not admissible. Each item must be valued consistently and justifiably: a clear overvaluation can be challenged by the notary or the tax authorities, particularly when calculating capital gains tax upon resale, since deducting the furniture also reduces this tax base.
Limitations to anticipate
This deduction only reduces transfer taxes—it has a marginal effect on the notary's fees and none on disbursements, thus limiting the actual savings relative to the total cost. Furthermore, banks never finance the portion corresponding to furniture in a standard mortgage: a personal contribution or separate additional financing is required for this amount. Finally, the buyer has five years from the date of signing to take legal action if the furniture listed in the deed has not actually been left on the property.
Get support
On a prestigious property, where the amounts involved justify a rigorous valuation of the furniture - sometimes via an auctioneer for collector's items - the support of a notary accustomed to high-end transactions remains the best guarantee of a solid and uncontestable deduction.
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