Transfer rights: definition and calculation

Transfer taxes, which include registration fees and land publicity tax, are due when a property changes ownership.

This transfer of ownership can be done free of charge during a donation or inheritance or for consideration (sale, contribution to a company). Explanations!

FL INTERIEUR PROVENCE has established a partnership to obtain a dated statement for 100 euros.

What are transfer taxes when buying or selling real estate?

Transfer taxes are fees that the buyer of real estate must pay during a real estate transaction.

• These transfer fees include registration fees and land publicity tax.
• There are two types of transfer rights: transfer rights for consideration and transfer rights free of charge.

Registration fees

Registration fees are a tax due at the time of signing the deed of sale of a property. They are collected by the notary who handles the transaction.

The amount of registration fees is generally calculated as a percentage of the purchase price of a home.

Land advertising tax

There land advertising tax is calculated as a percentage of the purchase price of the property. It is collected by the tax authorities rather than by the notary.

The buyer must pay this tax within two months of signing the deed of sale.

Transfer tax or VAT?

In a real estate transaction, the buyer may be subject to transfer taxes or VAT depending on the nature of the transaction and the real estate.

Unlike transfer taxes, VAT is included in the sale price. Therefore, the buyer does not pay VAT on top of the purchase price.

FL INTERIEUR PROVENCE has established a partnership to obtain a dated statement for 100 euros.

 

Transfer rights for consideration

A form of property tax

Transfer tax can be defined as a tax to which the following are subject: real estate sales.

They are due by the purchaser who purchases the property, at the time of signing the authentic deed of sale and full payment of the sale price at the notary.

Transfer fees due to the notary

Transfer rights are included in the notary's remuneration, or notary fees.

However, these include all costs paid in addition to the sale price and any fees owed to a real estate agent:

• registration fees;
• emoluments;
• fees paid to obtain the documents necessary for the sale.

These transfer fees are made up of registration fees applicable depending on the nature of the property purchased (land, new or old building) and the seller (subject to VAT or not).

In which cases do you have to pay transfer taxes?

Several legal transactions result in the payment of transfer duties:

• the sale;
• the contribution to society;
• sharing;
• L'adjudication.

Specifically, transfer duties are collected when the transactions relate to:

• buildings (built or unbuilt);
• company securities;
• of the business funds.

When to pay transfer taxes?

When purchasing real estate, the purchaser pays on the day the authentic deed is signed at the notary's office:

• the sale price of said property;
• transfer rights calculated on this sale price.

 

FL INTERIEUR PROVENCE has established a partnership to obtain a dated statement for 100 euros.

Free transfer rights

Principle of gratuitous transfer rights

Free transfers are those which do not, in principle, involve any financial compensation from their beneficiary.

These mutations come from a liberal intention, and result:

• either death (intestate or testamentary transmissions);
• or a donation between living persons.

Free transfer taxes are highly personalized: the personal situation and family situation of the taxpayers have an influence on the liquidation of the tax.

What are inheritance tax?

Inheritance tax on death (during an inheritance) is calculated on the net share returning to each beneficiary, after application of a reduction.

The rate of inheritance tax applicable to each hereditary share is that in force on the day of death.

• It is determined based on the family relationship between the heir and the deceased.
• The relationship is, in principle, established in accordance with the rules of civil law.

What are transfer taxes in a donation?

A donation inter vivos is an act by which the donor irrevocably divests himself of one of his assets in favor of the beneficiary donee who accepts it.

• Free transfers between living persons are subject to the same registration fees as transfers upon death.
• However, they give rise to the payment of land publicity tax when they relate to buildings.

What is the amount of transfer tax?

How to calculate transfer taxes?

Transfer taxes are calculated on the price of the property transferred, increased, where applicable, by any sums that may be owed to the seller.

• For example, transfer taxes are calculated on the price indicated in the deed.
• However, be careful of the tax administration's right of reclassification. If the latter proves an insufficient price, the rights are recalculated on the real value of the property.

The rates applicable in 2025: this point will be the subject of a following article following the latest regulations

Transfer tax rates vary depending on the type of transaction.

Thus, within the framework of the sale of a building, a tax at the common rate is collected for the benefit of the State, the department and the municipality.

It is composed of:

• of a departmental tax;
• of an additional municipal tax;
• of a national assessment and collection tax applied to the departmental tax.

The rate of departmental registration fees is set by each Departmental Council, for the period from June 1 of the year to May 31 of the following year.

Transfer taxes may also be at a reduced rate in the case of the following sales:

• The sale of a new building subject to VAT (registration fees apply in addition to VAT).
• The acquisition of real estate with a commitment to resell it within five years.

Who should pay the transfer fees to?

Registration fees are paid to the notary who collects the tax and then pays it to the Public Treasury.

Case of transfer rights for consideration when selling a condominium lot

In the case of the sale of a lot in co-ownership, the trustee may request transfer fees.

Before the ENL law of July 2006, the payment of these transfer fees was the responsibility of half the purchaser and half the seller.

Since this date, the fees must only concern the seller of the co-ownership lot.

THE condominium trustee invoice the former owner for the administration fees at the time of the transaction (justified amount of the operations necessary for a change of owner, between 150 and 800 euros).

FL INTERIEUR PROVENCE has established a partnership to obtain a dated statement for 100 euros.

The seller has the right to refuse to pay these transfer taxes if:

• they are not provided for in the co-ownership regulations;
• they were not voted on at the general meeting of co-owners.