French Riviera Realty assists clients in obtaining financing for property purchases in France and Monaco. We help identify suitable banks, prepare the financing application and coordinate with the bank and notary through to completion of the transaction.
Property Financing in France
French banks assess each application individually, taking into account the applicant’s income, assets, existing financial commitments, down payment and the characteristics of the property being acquired.
Various financing structures and loan terms may be available to non-resident buyers, depending on their financial profile and the bank’s lending criteria.
Main Documents Required
- Passport and proof of residential address;
- Tax returns and proof of income;
- Bank statements for the last three months and evidence of available funds;
- Employment or business documentation;
- Details of existing property holdings and financial commitments;
- Documents relating to marital status, where applicable;
- Preliminary property sale agreement (Compromis de Vente).
The exact documentation required may vary depending on the bank, the client’s status and the structure of their income.
The Financing Process
1. Preparing the Application
We review the client’s circumstances, identify suitable banks and prepare the required documentation.
2. Bank Assessment
The bank assesses the borrower’s financial profile and the principal terms and characteristics of the transaction.
3. Loan Offer
Once the application has been approved, the client receives a formal loan offer setting out the principal terms and conditions of the financing.
4. Completion with the Notary
The financing is coordinated with the notary and incorporated into the completion process when the final deed of sale (Acte de Vente) is signed.
Financing Options
Depending on the bank and the client’s financial profile, financing may be available at a fixed, variable or adjustable interest rate.
Loans may be structured with conventional repayment of principal and interest or through alternative financing arrangements, including an interest-only loan (prêt in fine).
French Property Wealth Tax — IFI
IFI (Impôt sur la Fortune Immobilière) is the French property wealth tax applicable to real estate assets.
IFI liability arises when the net taxable value of the tax household’s real estate assets exceeds €1.3 million.
IFI Tax Rates
| Net Taxable Value | Tax Rate |
|---|---|
| Up to €800,000 | 0% |
| €800,000 to €1,300,000 | 0.50% |
| €1,300,000 to €2,570,000 | 0.70% |
| €2,570,000 to €5,000,000 | 1% |
| €5,000,000 to €10,000,000 | 1.25% |
| Over €10,000,000 | 1.50% |
The financing arrangements and ownership structure of a property may affect the calculation of the taxable base for IFI purposes.
French Riviera Realty can help arrange a consultation with a specialist tax adviser and coordinate the appropriate transaction structure based on the client’s individual circumstances.
Property Financing in Monaco
Banks in Monaco offer bespoke financing solutions for clients with substantial assets.
Financing is often structured taking into account assets held with the bank, the client’s investment portfolio and mortgage security over the property being acquired.
How the Transaction May Be Structured
Depending on the bank, a significant proportion of the property’s purchase price may be financed while part of the client’s own assets is simultaneously placed with the bank.
The specific loan amount, required level of assets under management, interest rate and security arrangements are determined individually based on the client’s profile and the bank’s requirements.
French Riviera Realty Assistance
- Identifying suitable banks and financing solutions;
- Preparing and reviewing the financing application;
- Coordinating the translation and submission of documents;
- Liaising with the bank, notary and other professionals involved in the transaction;
- Assistance throughout the process, from selecting the property to signing the final deed of sale.
Our objective is to make the financing process clear, well-organised and straightforward for the client.
