Globally, there is not much offer and demand for quality products is high. So yes, market circumstances are favourable for sellers. Also, good quality
properties always sell faster. The sales process may not be easy and we recommend you use a reliable local real estate agent if you sell.
Once you have decided to put your apartment in Paris up for sale, we can manage on your behalf all stages of the sales process. We ensure an efficient and financially
favourable transaction through one or more local real estate agents. We act as intermediary and select the best real estate agent(s) for you.
By engaging us, you are ensured that you:
ParisScarabee Househunters only charge its services on a pre-agreed and transparant fee basis. We work on a no-cure no-pay basis: if you dont sell your property, you dont pay us the fee.
Retainer fee: 1.000 Euros
However, we do invoice you upfront a retainer fee of 1.000 Euros. This is to cover part of our out of pocket costs in the initial phase and to make sure you are serious about your sale too.
For this amount, we service you for you up to six months. This period may be extended each time by 3 months with mutual consent.
If you decide not to sell, you still owe us this retainer fee. But if you sell, we deduct it from our final fee.
Service fee: a percentage related to your sales price
Only after you have sold the property (no-cure no-pay), we charge you our service fee. This is our real remuneration.
We charge a fee equal to 2,5% of the sales price ("frais d'agence inclus, FAI"), with a maximum of 10.000 Euro for apartments with a sales price (FAI) not exceeding 1 million Euro. For apartments with a sales price beyond 1 million Euro we provide you with a fee upon request.
We may also agree in advance a fixed price for our service to you, so it won't vary with the purchasing price you finally receive: a fee cap.
Of course we deduct the retainer fee of 1.000 euros from your final fee invoice.
On all our invoices we must by French tax law add 20% French VAT.
French government levies an income tax of 19% for EU residents, 33% for non EU residents, plus social taxes of 15,5% (totals 34,5% for EU residents, 48,5% for non EU residents) over the capital gain on real estate owned by foreigners (non-French tax residents). The European Court of Justice has ruled om February 26, 2015 in a case on the matter whether this social tax can be levied by France from EU residents (not residing in France) on revenues from French property. The Court has ruled favourably for EU residents that the social tax is contrary to EU law and should be annulled. It is argued on this basis that the French income tax rate on capital gains should therefore not be higher than 19% for EU residents.
The French Conseil d'Etat has recently ruled in the case of a Swiss resident such that it could be argued that the income tax rate for non EU residents should be equal to the one for EU residents: 19% instead of 33% (read more). We advise non EU residents to seek professional advice as to whether they are subject to the French social taxes given the recent court cases.
EU and non EU residents who could benefit from a favourable ruling should timely protect their rights for a reimbursement of income tax (for non EU residents) or social tax (for EU (and non EU?) residents) already paid or request for delay of payment.
The French tax administration has meanwhile issued a guideline as to the procedure these EU resident tax payers have to follow to submit their refund claims for the years 2012-2015.
The French government has introduced proposals to increase the annual taxes due by non French tax residents from the tax years 2016 onwards to overcome the budget expense caused by the annulment of the social levies.
The capital gain is the difference between the original purchasing price and the final selling price (some corrections are made to either price). The cost of renovations can be included but only if they meet very specific criteria, and that is rarely the case. Normal renovation work does not count for French tax purposes to explain the increase in value of your apartment.
The taxable basis is 100% of the capital gain in the first 5 years. It goes down gradually for both income tax and social security levies. For income tax with 6% per year from the 6th to the 21th year, 4% per year in the 22th year , to reach 0% after 23 years. For social security tax purposes (but beware of the impact of the EU Court verdict for EU citizens!) with 1,65% per year from year 6 to the 21th , 1,6% in year 22, and with 9% as from year 22.
To make it even more complex: the French government has introduced a special increase of the income tax rate as per January 1, 2013. As follows: for a gain between € 50.000 the income tax will be increased with a tax rate between 2% and 6%. Profits of more than € 260.000 are subject to an