French Property Transfer Tax Increase by 2025:

The French government has announced plans to increase the property transfer taxes, known as Droits de Mutation à Titre Onéreux (DMTO), by 2025. This change will affect real estate transactions in the country, and it's essential to stay informed. Here's what you need to know:

What is DMTO?

DMTO stands for Droits de Mutation à Titre Onéreux, a tax levied on the transfer of real estate property in France. The tax is paid by the buyer and is calculated based on the property's sale price.

Current DMTO Rates

Currently, the DMTO rate varies between 5.09% and 5.80% depending on the property's location and the buyer's relationship with the seller.

Planned Increase

By 2025, the French government intends to raise the DMTO rate to approximately 6.00%. This increase is expected to generate additional revenue for the government and contribute to the nation's economic growth.

How Will This Impact Real Estate Transactions?

Buyers should be prepared for the increased DMTO rates when planning their real estate transactions. The tax hike might affect property prices and negotiation strategies. It is also essential to consider the additional costs when budgeting for a property purchase.

Stay Informed

Stay updated on the DMTO rate changes and consult with your notary or real estate professional for guidance on how these changes might affect your transactions. By staying informed, you can make well-informed decisions and smoothly navigate the French real estate market.

Real Estate Transactions in France Read our comprehensive guide on real estate transactions in France to learn more about the process, taxes, and other essential considerations.