Costs when buying an apartment for sale in Nice

Agency fees

The price you see advertised in France always includes the estate agency fee. The only thing you need to factor on top are the Notaire fees. The sum of the agency fee is not really important to the buyer as it is negotiated between agency and seller, and comes out of the seller’s share. In general the buyer does not discuss the agency fee and lets the agent and seller battle it out between themselves. The buyer does not need to pay the agency upon closing and a cheque is written directly to the estate agency by the Notaire.

The buyer should never have to sign a contract with an agency. They all work on a no-sale no-fee basis. There is no up front fee and there is nothing to pay if the sale does not go through to the Compromis stage.

Sometimes the agency fees are listed as paid for by the buyer. This is unusual but legal. Often it is because the seller wishes to lower the official price to pay lower capital gains tax, and the buyer is happy because they pay less in Notaire fees because of the lower official price. Ask your real estate agent to verify the reason before proceeding in the transaction.

Notaire fees

The costs of purchasing a property in France are fixed by the government, even the solicitor/lawyer fees. They even fix how much a Notaire can charge for photocopying a page for you. There is a lot of work that goes on behind the scenes and the Notaire does not know how much it is going to cost until the final deeds come back. For this reason they charge a "provisional amount" of what Notaires will tell you is around 7.8% and then refund you the difference once the Acte has been completed. This is normal up to a few hundred euros.

There are two possible additional costs. The first is the cost of a translator, if you cannot satisfy the Notaire that you speak fluent French. This usually around €350 but it is the translator that sets the price so it may vary. The translator must be an officially registered translator with the Town Hall so you cannot use a French speaking friend or family member. You cannot waive the translation if the Notaire says they require it as it is for the protection of the Notaire rather than your own. They do not want the possibility of a court challenge where you say you did not understand what you were signing. The translator will also sign the deeds to certify you understood the sales document upon closing.

The second possible cost is if you wish to change your marriage regime for inheritance purposes. Foreign wills are not recognised in France unless explicitly registered that you wish your property to fall under it, otherwise it falls under the French inheritance regime. Upon the death of a spouse the estate is divided between wife and children, even from previous marriages. Many wish to have an contract drawn up that makes it explicit that the property is to be passed directly to the surviving spouse. This also means that no inheritance tax is immediately due. Depending on your estate planning, your Notaire may suggest holding the property in a shell company such as an SCI, or drawing up a life-long right of tenancy agreement such as Usufruit.

If you are interested in calculating the Notaire fees yourself, then they are calculated as follows. The two costs are government taxes and legal fees. The first is comprised of three costs: stamp duty is 5.8%, there is a fixed €800 administrative cost, and there is a nominal 0.1% fee for publishing the deed.

The legal costs are €400 for ordering documents, and then on top the lawyer fees which are broken down as follows: 3.87% on the first €6,500, 1.596% up to €17,000, 1.064% up to €60,000, and the rest at 0.799%. Then add 20% VAT to the lawyer fees.

Add the government taxes to the legal fees to end up with your estimated "Notaire fees".

Ongoing costs

There are two ongoing costs, your building maintenance fees and your local government tax. When you buy an apartment you also buy a share of the building and your share, usually based on the size of your apartment, will determine how much of the costs you need to bear. An average apartment in an average building will be around 5%, so if the roof needs repairing and the cost is €10,000 then you will be asked to contribute €500. All decisions of works to be done are taken at the annual general meeting of residents, the property management company serves a purely administrative function and cannot make any decisions on behalf of the residents.

There is a monthly maintenance charge, which does not include rare one-off costs voted for during the annual general meeting, and this covers cleaning the common areas, regular lift inspections, minor repairs, and for the concierge if there is one. A pied-a-terre in the Old Town or Carre d’Or with no lift will incur around €50-€100 per month. A moderate one or two bedroom in the city centre costing €300-€400k will be around €100-€150 per month. A larger apartment in a bourgois building with a concierge will run €150-€250 per month. There are a few new-build and prestige properties that have costs over €300 per month but they are rare. Exercise caution as this can affect resale value.

The other cost is the council tax, due every September. It is based on area and then size. If you are spending up to €300k on a property expect it to be around €600-800 per year, and if spending up to €500k then €1,000 per year, up to €800,000 then €1,200 per year, and if above then around €1,400 per year.