Buying property in Réunion: fees, taxes and notary fees
Acquisition costs, transfer taxes, notary fees, VAT, financing, property tax and second homes: what expenses and checks should be anticipated before buying a property in Reunion Island?
Buying property in Réunion requires considering the overall cost of the transaction, not just the listed price. In addition to duties and taxes, there are regulated notary fees, administrative costs, disbursements, potential financing costs, loan guarantee fees, and expenses related to ownership after the purchase.
As Réunion is an overseas department and region, French real estate law provides the general framework for property acquisition. However, there are specific pricing and tax regulations that a buyer should be aware of, particularly regarding notary fees and the locally applicable VAT.
She gives the impression that the entire sum paid during the transaction goes to the notary. This is not the case.
Acquisition costs include taxes and duties, regulated notary fees, formalities and disbursements incurred to prepare and secure the file.
For a prestigious property, it is therefore preferable to ask the notary for a precise provisional statement adapted to the price, the nature of the property and the status of the buyer.
🇫🇷 Buying in Reunion Island: what is the legal framework?
Reunion Island is a French overseas department and region. Real estate acquisition is therefore governed by French law, with land registration, authentic deeds, and notarial involvement to finalize the sale.
Regarding transfer taxes, the tax authorities specify that real estate transfers in Réunion are subject to land registration taxes and additional taxes under the same general conditions as in mainland France.
💶 What do acquisition costs actually include?
🏛️ Transfer taxes: what has changed in Réunion
The finance law for 2025 has temporarily authorized departments to raise their standard rate of transfer duties beyond 4.5% and up to 5%, for the period provided for by law.
The situation in Réunion evolved in two stages.
In April 2025, the Department had announced that the rate would remain at 4.5%.
But the official table from the Directorate General of Public Finances applicable from June 1, 2026 now indicates for department 974: 5% under the temporary scheme and 4.5% under the common law rate.
These percentages alone do not represent the total acquisition costs. Additional applicable taxes, assessment fees, property security contributions, fees, and disbursements must also be added.
The exact rate must therefore be verified at the time of acquisition, as a deliberation or legislative amendment may change the situation.
🏠 First-time buyer: does the 5% increase apply?
Not necessarily.
The national scheme provides that the temporary increase beyond 4.5% does not apply when the property constitutes a first property within the meaning of the rules provided for by law and is intended to become the main residence of the purchaser.
However, the qualification of first-time buyer must be verified in light of the specific situation of each buyer.
The rules become more technical in particular in the case of joint ownership, married couples or prior ownership of certain real estate rights.
Therefore, simply having "never bought alone" should not automatically be assumed to mean that the exception will apply. The notary will verify the legal status of the buyers.
⚖️ An important detail: the notary's fees in Réunion
Notary fees are regulated. However, Réunion benefits from a specific fee schedule.
The Commercial Code stipulates that the relevant fees of notaries are increased by 36% in Réunion.
These rates are applied in tiers: therefore, the total price of the property is not multiplied by 1.087%.
Service-Public recommends asking the notary for a detailed written quote or a cost estimate for the operation.
🏗️ Buying new: why are the costs different?
The purchase of a new property may be subject to a different regime than that of an older property.
The tax authorities point out that buying new property is characterized in particular by a reduced rate of land registration tax in transactions that meet the conditions provided.
The tax definition of a new building is subject to specific criteria. A property that has simply been renovated or recently resold therefore does not automatically qualify for the reduced tax regime.
In a new or off-plan luxury property purchase, the developer and the notary must specify the applicable VAT regime and duties.
📝 The main steps in buying a property
🏦 Financing a property purchase in Reunion Island
Financing should be considered before committing to a property, especially for high-value acquisitions.
The IEDOM regularly publishes statistics on the rates charged by credit institutions in Reunion Island.
These statistics obviously do not constitute a funding proposal.
The rate offered to a buyer will depend in particular on their contribution, income, assets, debt, loan term, guarantee and banking profile.
For a luxury property, financing can also be structured differently from a standard home loan.
📑 The loan contingency condition
When a property is purchased with the use of a mortgage loan, the preliminary sales agreement must specify the origin of the financing and include a condition precedent of obtaining the loan.
This clause protects the buyer if financing corresponding to the characteristics provided for in the preliminary contract is not obtained, subject to compliance with their obligations and contractual conditions.
Service-Public specifies that the period planned to obtain the funding cannot be less than one month, even if the parties may agree on a longer period.
For a major acquisition or a complex asset management case, it is therefore prudent to prepare the financing even before submitting an offer.
🏡 What taxes are due after the purchase?
The real estate budget does not end on the day of signing.
In 2026, the cadastral rental values of the buildings and unbuilt properties concerned were subject to a flat-rate increase of 0.8%. Local rates, however, are voted on by the local authorities.
A buyer must therefore request the latest property tax statement for the property and not extrapolate from a neighboring property.
🌍 What if the buyer does not reside in Reunion Island?
The location of the property and the tax residence of the buyer are two different issues.
A property owner who does not have their tax residence in France remains particularly concerned by local taxes attached to their French property.
The tax authorities specify that property tax and, where applicable, housing tax on a secondary residence are managed by the tax office of the place where the property is located.
For an international buyer or a taxpayer with residences in several countries, personal taxation, inheritance, the method of ownership and the applicable tax treaty must be the subject of tailored advice.
🔎 What should you check before signing?
⚠️ In Réunion, risk assessment is part of the purchase
Legal and tax verification is not enough.
In Réunion, the buyer must also examine the exact situation of the property with regard to natural risks and urban planning regulations.
The risk assessment may include, in particular, natural hazard prevention plans, seismicity, coastal erosion or other information required by regulations.
Since August 2026, Reunion Island also has a revision of the Soil Information Sectors intended to strengthen information concerning certain lands presenting soil pollution issues.
The future article no. 4 is therefore deliberately devoted to this subject: cyclones, floods, landslides, volcano, coastline, PPR, Georisks and urban planning.
📋 Condominium apartment: additional documents
Purchasing an apartment or villa located in a condominium requires the examination of additional information.
Before the acquisition, it is particularly useful to study the condominium regulations, the descriptive statement of division, the minutes of the last general meetings, the charges, the reserve fund, any outstanding payments, the maintenance log and the planned works.
The price of an apartment with an ocean view may seem attractive, but a major condominium renovation project can change the actual cost of the purchase.
🏊 Luxury villa: beware of outbuildings
For a high-end villa, due diligence should also focus on what exactly constitutes the property's value.
Swimming pool, pool house, terraces, extensions, outbuildings, walls, access, parking or major developments must be considered in light of the available permits and documents.
A beautiful photograph or a mention of "fully renovated villa" does not demonstrate the administrative compliance of the work.
This is particularly important when the buyer is subsequently considering an extension or new construction.
💎 Buying a luxury property: think in terms of overall budget
For a property costing €600,000, €1 million or several million, the purchase price is only part of the budget.
You must also anticipate acquisition costs, any necessary work, local taxes, insurance, maintenance of the land, swimming pool and equipment, as well as the cost of financing where applicable.
On a large property, annual maintenance can be very different from that of an apartment, even if both properties have a comparable acquisition value.
The correct method is therefore to calculate the cost of acquisition and then the cost of ownership, before comparing several properties.
🌋 Luxury real estate dossier in Reunion Island
This third guide complements the first two pages dedicated to the market and the sectors where to buy.
💎 Search for a luxury property in Reunion Island
Propriétés De Charme is a real estate portal and not a real estate agency.
The portal features properties of character, prestige and luxury, including properties located in Reunion Island.
For properties offered for sale, the minimum price for publication on Propriétés De Charme is set at €600,000.
Before buying: get a quote and verify the transaction
In Réunion, the advertised price is not enough to determine the actual budget for a purchase.
Ask the notary for a preliminary statement of costs, prepare the financing and check the legal, tax, technical and urban planning documents before making a final commitment.
For a prestigious property, securing the purchase begins well before the signing of the official deed.
Directorate General of Public Finances — registration fees and land registration tax, rates applicable from June 1, 2026. Source used to verify the rate voted in Réunion: 5% as part of the temporary increase and 4.5% as the standard rate.
Consult the official DMTO table
BOFiP — General rules governing real estate transfers. Consulted regarding the temporary increase in transfer taxes, the exception concerning certain acquisitions by first-time buyers intended for their main residence, and the operation of transfer taxes.
BOFiP — tax regimes for overseas territories. Source used to confirm the regime applicable to real estate transfers in Réunion.
Consult the overseas tax regime
Service-Public — notary fees. Source used for the breakdown of fees, the fee schedule applicable in Réunion, the 8.5% VAT and the recommendation to request a provisional statement.
Légifrance — Commercial Code, article A444-53. Legal source used for the 36% increase in the fees of notaries in Réunion.
impots.gouv.fr — property purchase and VAT in the French overseas departments. Sources used to distinguish between old and new properties, the land registration tax, the property security contribution and the standard VAT rate of 8.5% in Réunion.
Costs associated with a property purchase — VAT in the French Overseas Departments
IEDOM — Credit rates in Réunion, first quarter 2026. Source used for the average rate of new housing loans, the average duration and the average amount of loan.
Public Service — preliminary sales agreement and financing contingency. Consulted for the 10-day withdrawal period and the rules relating to the loan contingency.
Directorate General of Public Finances — property tax and housing tax. Sources used for local taxation after acquisition.
ADIL of Reunion Island. ADIL offers free, neutral and personalized information on the legal, financial and tax aspects of housing.
Important: This guide is for informational purposes only. Tax rules, rates, financing conditions, and personal circumstances may change. Before making a purchase, the exact amount of taxes and fees should be verified with the notary and, if necessary, with a legal, tax, or financing professional.