{"id":10931,"date":"2024-05-08T14:19:32","date_gmt":"2024-05-08T14:19:32","guid":{"rendered":"https:\/\/staging.consultants-immobilier.com\/?page_id=10931"},"modified":"2024-05-08T16:54:14","modified_gmt":"2024-05-08T16:54:14","slug":"transfer-taxes","status":"publish","type":"page","link":"https:\/\/staging.consultants-immobilier.com\/en\/sellers-guides\/notary-fees\/transfer-taxes\/","title":{"rendered":"Understanding transfer taxes"},"content":{"rendered":"

[vc_row full_width=”stretch_row_content” content_placement=”top” css=”.vc_custom_1670852810251{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”back_div”][vc_column css=”.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJteV9iYWNrX2J1dHRvbiUyMiUzRSUwQSUwOSUwOSUwOSUwOSUwOSUwOSUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuY29uc3VsdGFudHMtaW1tb2JpbGllci5jb20lMkZlbiUyRnByb3BlcnR5LWd1aWRlcyUyRiUyMiUzRSUzQyUyMEJhY2slMjB0byUyMHByb3BlcnR5JTIwZ3VpZGVzJTNDJTJGYSUzRSUwQSUwOSUwOSUwOSUwOSUwOSUzQyUyRmRpdiUzRQ==[\/vc_raw_html][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1715177448061{background-image: url(https:\/\/staging.consultants-immobilier.com\/wp-content\/uploads\/2024\/05\/mutation.jpg?id=10932) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”override_left”][vc_column css=”.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}”][\/vc_column][\/vc_row][vc_row el_class=”override_pos”][vc_column][vc_row_inner css=”.vc_custom_1662026446228{background-color: #e4e4e4 !important;}”][vc_column_inner][vc_custom_heading text=”Understanding transfer taxes” font_container=”tag:h1|font_size:37|text_align:center|color:%23040e31″ use_theme_fonts=”yes” css=”.vc_custom_1715177630623{padding-right: 20px !important;padding-bottom: 30px !important;padding-left: 20px !important;}” el_class=”relative_pos”][\/vc_column_inner][\/vc_row_inner][vc_row_inner equal_height=”yes” el_class=”firstblock guide-wrapper-row vc_row-o-equal-height vc_row-flex” css=”.vc_custom_1765897502487{background-color: #ffffff !important;}”][vc_column_inner width=”4\/5″][vc_column_text css=”” el_class=”resume_block”][\/vc_column_text][vc_column_text css=”” el_class=”content_block”]Transfer taxes can be either free of charge or for consideration. These taxes, often referred to by the public as “notary fees,” represent a significant portion of the additional costs during a real estate transaction. They vary from region to region and can significantly impact the price of real estate sales or acquisitions.<\/span><\/p>\n

Transfer Taxes: What Are They?<\/b><\/h2>\n

Transfer taxes are fees that any real estate buyer must pay (Article 1593 of the French Civil Code). They encompass various components: registration fees or land registration tax, real estate security contributions, and notary fees.<\/span><\/p>\n

There are two types of transfer taxes:<\/span><\/p>\n

Transfer Taxes for Consideration<\/b><\/h3>\n

Transfer taxes for consideration (DMTO) are taxes collected during the transfer of property ownership. They represent a significant portion of additional costs during a real estate acquisition and vary depending on the property’s location.<\/span><\/p>\n

Several legal operations, such as a capital contribution to a company, an auction, or a sale, trigger the obligation to pay transfer taxes for consideration.<\/span><\/p>\n

Transfer Taxes Free of Charge<\/b><\/h3>\n

Transfer taxes free of charge relate to property transfers occurring during a gift or inheritance (intestate or testamentary transfers). They do not involve any financial consideration by the recipient.<\/span><\/p>\n

In the context of inheritances, transfer taxes free of charge are calculated on the net share received by each heir. The tax rates also vary based on the degree of kinship.<\/span><\/p>\n

Good to know:<\/b> The filing of the declaration and the payment of inheritance tax must be done within 6 months after the date of death.<\/span><\/p>\n

How Are Transfer Taxes Calculated?<\/b><\/h2>\n

The amount of transfer taxes is primarily based on the value of the real estate being acquired. They are calculated on the purchase price or the fair market value of the property. Note that a<\/span> real estate appraisal<\/span><\/a> is essential to determine the value of any real estate asset.<\/span><\/p>\n

Generally, DMTO consists of three main components: the departmental portion, the municipal portion, and the portion that goes to the state.<\/span><\/p>\n