Buying an apartment in France while living abroad

THE NON-RESIDENT'S GUIDE

Can you buy an apartment in France if you live in Sweden, Germany, Hungary, the Netherlands, or another country?

Yes.

And contrary to a common misconception, you do not need to be a French tax resident to own an apartment in France.

Purchasing real estate in France can serve a variety of purposes: a holiday home, a future primary residence, a buy-to-let investment, a pied-à-terre in Paris, accommodation for a student child, or simply building a property portfolio.

However, buying property in France while living abroad requires a clear understanding of the legal right to purchase, financing, taxation, renting out the property, and resale.

An EU citizen can purchase real estate in France without becoming a French resident.

They can buy a primary residence, a holiday home, or a property intended for rental.

However, purchasing an apartment does not automatically grant the right to reside in France. A distinction must be made between two issues:

property ownership and the right of residence.

EU citizens benefit from specific rules regarding movement and residence within the European Union. For nationals of countries outside the European Union, residence rules differ and must be considered separately.

Therefore, purchasing real estate does not, in itself, constitute a residence permit.

VEFA or VIR?

Buying a new-build property

When purchasing a new apartment before it is completed, the transaction generally takes the form of a *vente en l'état futur d'achèvement* (VEFA)—a sale based on a future state of completion. Alternatively, the property may be purchased as part of a total renovation project; this is known as a *vente d'immeubles à rénover* (VIR)—a sale of a building to be renovated.

The process differs from buying an existing property: the buyer purchases a home that is yet to be built or is currently under construction, gradually becoming the owner as the work progresses. The contract and the various stages of the sale are governed by French regulations. (economie.gouv.fr)

This can be particularly attractive for buyers living abroad, as the necessary arrangements can be made remotely with the developer, the notary, and—where required—a bank or specialized broker.

In certain situations, a power of attorney can also facilitate the signing of the legal documents if the buyer is unable to attend in person.

Financing

Buying in France with foreign income

This is often where things get more complex.

Making a purchase is possible; securing French financing is another matter.

A French bank can review an application based on income earned abroad, but it will naturally scrutinize income stability, the country of residence, the currency of earnings, the borrower's assets, the down payment, and available collateral.

A buyer working in Germany, Belgium, or the Netherlands may present a very strong case, yet the bank will still need to analyze income that is not declared in France.

Financing can also be more straightforward when the buyer has a substantial down payment and financial or real estate assets to strengthen the application.

An important tip

For non-resident buyers, it is advisable to verify financial means and borrowing capacity before proceeding too far with the search.

This allows you to determine your exact budget and avoid discovering too late that your planned financing is not feasible under the desired terms.

Taxation

What taxes apply to a non-resident owner?

Being a tax resident of another country does not mean you are exempt from French taxation.

A non-resident who owns an apartment in France may be subject to:

• property tax (*taxe foncière*);
• tax on French real estate income;
• real estate wealth tax (*IFI*) in certain situations;
• capital gains tax upon resale.

In principle, income sourced in France remains taxable in France, subject to the provisions of the tax treaty concluded between France and the country of residence. (impots.gouv.fr)

The tax situation must therefore be examined in both countries: the buyer's country of residence and France.

Property tax (*taxe foncière*)

Property tax is linked to ownership of the property, not the owner's place of residence.

An owner living in Stockholm, Budapest, Brussels, or Berlin may therefore be liable for property tax on their French apartment.

Questions regarding local taxes should be addressed to the tax office responsible for the area where the property is located. (impots.gouv.fr)

One must also consider co-ownership charges and any expenses related to managing the property.

If the property is rented out: where is the rental income taxed?

When a non-resident owns a property in France and rents it out, the income derived from that property is, in principle, taxable in France.

Taxation depends, among other things, on the type of rental.

Unfurnished rental

Rent from an unfurnished property is classified as real estate income (*revenus fonciers*).

The owner may be subject to the *micro-foncier* regime (if conditions are met) or the *régime réel* (actual income/expense regime).

Furnished rental

Furnished rentals fall under a different tax category, generally that of industrial and commercial profits (*BIC*).

The applicable rules differ and must be assessed based on the owner's specific situation. The French tax authorities specify that income from real estate located in France is taxable in France, depending on its nature and subject to international tax treaties. (impots.gouv.fr)

What about the country where the owner resides?

This is a crucial question.

A Swedish owner receiving rent from an apartment located in France may have reporting obligations in Sweden in addition to those in France.

This does not necessarily mean paying tax twice.

The specific aim of international tax treaties is to determine which state has the right to tax income and how to avoid or limit double taxation.

Therefore, one must always consult the tax treaty between France and the country of residence.

This rule is particularly important when the buyer owns multiple properties or has substantial income.

IFI: a tax relevant to high-net-worth individuals

The Real Estate Wealth Tax (IFI) applies to individuals whose net taxable real estate assets exceed €1.3 million, subject to the rules applicable to their specific situation. (impots.gouv.fr)

For a non-resident, real estate assets located in France may therefore be included in the IFI calculation.

This means that a foreign investor with significant real estate holdings in France must factor this possibility into their wealth management strategy.

Naturally, the IFI is not an issue for the vast majority of buyers purchasing a single apartment, but it becomes significant once French real estate holdings reach a certain scale.

Buy-to-let: what tax schemes are available?

This is arguably one of the points requiring the most clarification.

One sometimes hears:

"French tax benefits are reserved for French nationals."

That is an oversimplification.

What matters is examining the specific conditions of each scheme.

In 2026, a new buy-to-let investment scheme known as *Relance logement* (Housing Stimulus)—also referred to as the Jeanbrun scheme—came into effect. It applies to investments made between February 21, 2026, and December 31, 2028, in multi-unit residential buildings—specifically, either new housing or certain existing properties undergoing major renovations. (economie.gouv.fr)

Notably, the property must be rented out unfurnished as a primary residence for nine years, subject to rent caps.

The scheme allows for a deduction against certain rental income, notably through a depreciation mechanism. (economie.gouv.fr)

But can a non-resident benefit from it?

One certainly should not give an automatic "yes" or "no" answer.

Eligibility depends on the scheme's conditions and the taxpayer's tax situation.

A non-resident investor must therefore verify precisely whether they have a French income tax liability against which the benefit can be offset, and which specific rules apply to them.

There is, therefore, a difference between: being authorized

The various regulations

Can you rent out your apartment freely?

In principle, yes, but renting is subject to French regulations applicable to the specific property.

In particular, the owner must comply with rules regarding:

• the type of rental;
• the lease agreement;
• housing standards (habitability/decency);
• mandatory property inspections/diagnostics;
• co-ownership rules;
• taxation;
• and, in certain municipalities, specific rules concerning short-term tourist rentals.

For an owner living abroad, day-to-day management can also be a significant challenge.

Who welcomes the tenant?

Who conducts the property condition reports (inventory of fixtures)?

Who steps in if a problem arises?

Who oversees maintenance or renovation work?

Who receives administrative correspondence?

A non-resident owner often benefits from considering professional rental management services.

Naturally, the cost of this management must be factored into the profitability calculation.

Resale: what happens?

When a non-resident sells an apartment located in France, the resulting capital gain may be taxable in France.

The general principle is the taxation of real estate capital gains via income tax at a rate of 19%, to which social security levies may be added depending on the seller's situation. Exemptions and allowances may apply, particularly based on the length of ownership. (impots.gouv.fr)

Specific rules regarding social security levies apply to individuals affiliated with certain social security schemes in the European Union, the EEA, or Switzerland. (impots.gouv.fr)

The length of ownership is also a key factor: allowances increase progressively, leading—under general rules—to an exemption from income tax after 22 years and from social security levies after 30 years.

The notary handles the calculation and payment of the capital gains tax at the time of sale, where applicable. (Service Public)

Does a non-resident from the EU receive special treatment? In several areas, yes.

This is particularly evident regarding the taxation of capital gains and social security levies.

Nationals of the European Union and certain EEA countries benefit from special rules in specific situations.

For example, individuals affiliated with a mandatory social security scheme in another EU/EEA state or Switzerland may, under certain conditions, be exempt from the CSG and CRDS levies on certain real estate capital gains, while remaining subject to the solidarity levy. (impots.gouv.fr)

This illustrates why it is risky to treat non-residents as a single tax category.

A Swedish national, a British national, an American, and a resident of another country may all face different situations.

Primary or secondary residence?

The nature of the purchase plan also makes a significant difference.

Buying to live in France

The buyer is preparing to settle in the country.

The question of the right of residence may become important for non-EU nationals.

Financing, social security coverage, taxation, and tax residency status must also be considered.

Buying a secondary residence

The owner retains their tax residency abroad while owning a property in France for personal use.

This is a very common scenario in certain French regions.

Buying to rent out

The objective shifts to asset investment.

Yield, taxation, rental demand, operating costs, financing, and the tax implications of resale must all be considered together.

Why buy a new-build apartment when living abroad?

New-build properties offer several features that can appeal to international buyers.

In particular, a new home offers:

• up-to-date energy efficiency standards;
• modern amenities;
• no need for immediate renovation work;
• construction-related warranties;
• generally lower acquisition costs compared to existing properties (depending on the transaction structure);
• and, through off-plan purchasing (VEFA), the opportunity to buy a property before it is completed.

For an owner living outside France, the absence of immediate renovation work can be a significant advantage.

A new apartment may also be easier to rent out, especially given that tenants often seek modern, energy-efficient, and comfortable homes.

The real issue: choosing the right property

However, tax considerations should not be the starting point.

A tax benefit cannot turn a bad investment into a good one.

Before looking at the tax implications, you should examine:

• Location.
• Rental demand.
• Price per square meter.
• Quality of the development.
• Apartment layout.
• Aspect/orientation.
• Service charges.
• Resale potential.
• Proximity to transport and amenities.

These are the factors that determine the property's fundamental quality.

Tax planning serves to optimize the project.

Buying from abroad: planning is key

You can purchase real estate in France without living there, but the process requires careful planning.

The prospective buyer will need to arrange for the following:

• defining the project;
• searching for the property;
• arranging financing;
• the reservation agreement or preliminary sales agreement;
• notarial procedures;
• signing the deed of sale;
• insurance;
• property management;
• tax filings;
• and, potentially, renting out the property.

For a buyer who is not fluent in French, understanding contracts and legal documents is obviously essential.

An opportunity for European investors

French real estate can appeal to an international clientele for a wide variety of reasons.

A Belgian might look for an apartment in Paris; a German might plan a buy-to-let investment; a Swede might want to acquire a holiday home; a Dutch national might consider moving to France in the future; an Italian might buy a property for a child who is a student. Investors living outside Europe may also explore the French market, subject to rules that vary depending on their country of residence. There is no single profile for a foreign buyer, but rather a multitude of different plans.

Key takeaways

Buying real estate in France while residing abroad is entirely feasible.

However, there are six questions to consider:

1. Can I buy? In the vast majority of cases, yes.

2. Can I get a loan? Yes, though conditions may differ for non-residents.

3. Where will I be taxed? In France, for income and transactions subject to French tax law, while taking into account the tax treaty with your country of residence.

4. Can I rent out my property? Yes, provided you comply with French rental regulations.

5. Can I benefit from a tax incentive scheme? Potentially, depending on the scheme and your tax situation; conditions must be checked on a case-by-case basis.

6. What happens when I resell? Capital gains realized in France may be taxable, subject to specific rules for non-residents.

The "Esprit du Neuf" Perspective

Buying property in France from abroad can seem complex.

In reality, the principle is quite simple: a foreign buyer can invest in French real estate, but the project must be evaluated from real estate, financial, and tax perspectives.

That is precisely why a non-resident buyer should not start by looking solely for "the best tax benefit."

They should begin by looking for the right property, in the right location, for the right project.

Tax considerations should then support that decision.

And for a real estate investment, this is probably the best rule to remember:

A good investment starts with a good property. Tax considerations come next.

Important

This article outlines the general principles applicable in 2026. A non-resident's tax situation depends on factors such as their country of residence, nationality, the nature of the property, the ownership structure, the property's use, and the applicable tax treaty.

Before making any decision, it is recommended to have the proposed structure validated by a notary or a tax advisor specializing in international taxation.

We work with top experts who can advise you on the taxation and yield of your investments.

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