Published on and written by Cyril Jarnias
For an expatriate, combining a life project with a solid investment is not straightforward. France, however, stands as an exception: a stable real estate market, a protective legal framework, accessible financing for non-residents, and a country that remains the world’s top tourist destination. Buying property in France does not automatically grant a residence permit, but it is a powerful lever for preparing a move, securing part of one’s wealth in euros, and generating rental income.
This article offers a comprehensive guide, based on recent market data and the practical workings of the French system, for expatriates considering investing in real estate… in France.
Why France Attracts So Many Expatriate Investors
France combines several assets rarely found together in one country. On one hand, a highly regulated real estate market, with little speculation, known for being resilient even during crises. On the other, a quality of life, a cultural and tourist offering, and an image as a “safe haven” that attracts buyers from all over the world.
In France, the homeownership rate exceeds 60%, a level higher than in the United Kingdom, highlighting the cultural importance of property. This national preference for ownership helps stabilize prices, even during periods of global economic tension. During financial crises, the French market corrects slowly, without a sharp collapse, thus offering a certain level of security for prudent investors.
In this context, the foreign presence is far from marginal. More than 10% of purchases in Paris and its inner suburbs are made by foreign buyers, with a noted increase in Americans and investors from the Asia-Pacific region. Non-residents are particularly active in “lifestyle” segments: dynamic regional capitals, the Mediterranean coast, Alpine resorts, or charming villages.
In France, non-residents can obtain a mortgage under conditions close to those for residents, provided they present a strong application. Banks generally grant a loan covering 70 to 80% of the purchase price, with long terms and predominantly fixed interest rates.
Finally, France is a country of written law, with a system of public notaries, transparency in land registries, and strict protection of property rights. In global rankings, it is among the least corrupt countries, which reduces the risk of regulatory surprises or opaque practices.
How the French Real Estate Market is Evolving (and Why the Timing is Favorable)
Between 2023 and 2025, France experienced a phase of correction then stabilization. Sales declined in 2022 due to rising interest rates, euro volatility, and a drop in purchasing power. In some major cities like Paris, Lyon, Nantes, or Toulouse, prices slightly decreased, by around 2% on average.
At the same time, coastal and mountain resorts continued to perform well, with annual increases sometimes exceeding 10%. This divergence reflects a long-term trend: since the pandemic, a segment of buyers has favored medium-sized cities, well-connected suburbs, and leisure destinations over hyper-centers.
The most recent projections now describe a market in “cautious recovery” rather than a boom. For 2025, professionals mention a stabilization with moderate price growth of about 2% nationally. For 2026, scenarios estimate average growth between 0 and 3%, with significant regional contrasts.
Number of housing sales forecast for 2025, marking a recovery toward record volumes.
For an expatriate, this normalization phase offers an advantage: room for negotiation has widened (nearly 5% on average in spring 2025) while medium-term prospects remain positive, especially in university and technology cities where demand is booming.
Understanding Prices: From Paris to Rural Regions
France is a patchwork of micro-markets. Prices per square meter range from less than €1,500 in some rural areas to over €12,000 in the most sought-after districts of the capital. For an expatriate investor, the challenge is to align budget, strategy, and location.
The table below provides an overview of some major cities around 2025–2026, based on observed ranges and averages.
| City / Region | Average Price per m² (approx.) | Synthetic Comment |
|---|---|---|
| Paris | ~€9,500–11,000 | Very tight market, strong heritage value, moderate rental yields |
| Nice | ~€7,900 | Strong tourist dimension, French Riviera, high seasonal rents |
| Lyon | ~€5,400 | Dynamic metropolis, strong recent growth, good yield/appreciation compromise |
| Bordeaux | ~€4,900 | City in renaissance, TGV to Paris, stable capital gain potential |
| Marseille | ~€4,500 | Catch-up market, attractive rental yields |
| Toulouse | ~€4,100 | Aerospace and tech hub, strong rental demand from students and professionals |
| Montpellier | ~€4,300 | Rapid growth, attractive climate, leader in price increases |
| Nantes | ~€3,450–4,400 | Highly sought-after city, solid rental market |
| Saint‑Étienne | ~€1,525 | Very low prices, high yields, niche rental market |
| Nancy | ~€2,300 | University city, interesting intermediate yield |
At the regional level, contrasts are equally marked. According to 2024 data, the Île‑de‑France region shows average prices of around €5,920/m² for apartments, while regions like Grand Est or Brittany are around €1,800–2,900/m². Houses there are often cheaper than apartments, except on the highly sought-after coastline.
Another useful analytical framework for an expatriate is that of sectors, which allows for analyzing and understanding the professional and economic environment of the host country by segmenting it by field of activity. This approach helps identify job opportunities, market dynamics, and cultural specificities unique to each sector.
– Economic Metropolises: Paris, Lyon, Toulouse, Bordeaux, Nantes, Marseille. Good balance between long-term appreciation and structural rental demand.
– Premium Tourist Regions: French Riviera, Provence, Alps, Arcachon Bay, Île de Ré. High prices, strong seasonal tensions, often a heritage market.
– Medium-sized and Secondary Cities: Rennes, Montpellier, Nancy, Le Mans, Angers, Tours, Pau, Bayonne, Arras. More accessible prices, sometimes higher yields, underestimated growth potential.
– Rural and Small Towns: Dordogne, rural Burgundy, certain parts of Occitanie or Centre-Val de Loire. Very affordable entry-level, but caution regarding rental vacancy.
What Investment Strategy for an Expatriate?
The same country can host completely different markets. The right strategy depends on your profile: are you looking for a self-funding pied-à-terre, a simple rental investment, or a medium-term capital gain operation?
Long-term Rental Investment: The Most Stable Strategy
Buying to rent for several years (leases of at least 6 months) remains the most robust approach. It relies on strong housing demand in urban and university areas and relatively predictable rents.
The most sought-after property types in this context are:
– 2 or 3-room apartments in metropolises and large university cities;
– small townhouses or family homes in well-served suburbs;
– small subdivided buildings (3–6 units) in medium-sized cities.
Gross yield data places the French average around 4.8–6% according to sources, with real variations:
| City / Segment | Average Gross Rental Yield (approx.) |
|---|---|
| Marseille (targeted districts) | ~5.1–5.5% |
| Lyon | ~4.5–5.0% |
| Nantes | ~4.3–5.0% |
| Toulouse | ~4.6–4.7% |
| Bordeaux | ~4.6% |
| Saint‑Étienne | ~5.85–6.4% |
| Nancy | ~5% |
| Paris (entire market) | ~5.2% gross but net yield compressed by prices |
These figures remain averages: a good location, a suitable layout (studio near a university, 3-room near an employment hub), and controlled management often allow for better performance.
For an expatriate, cities like Toulouse, Montpellier, Marseille, Lyon, or Nantes offer an interesting compromise: demographic growth, dynamic economy, solid rents, and prices still below those of major global capitals.
Vacation and Seasonal Rentals: High Profitability, High Constraints
Another very popular option: buying in a tourist area (Provence, French Riviera, Dordogne, Atlantic coast, Alps) to operate the property for short-term rental. France welcomes about 90 to 100 million tourists per year, creating an exceptional baseline of demand.
This strategy can generate high income, but it has become highly regulated. In several cities, strict rules limit the annual rental duration of primary residences or require a change of use for secondary residences. In Paris, for example, tourist rental is capped at 90 days per year for a primary residence; penalties ranging from €5,000 to over €50,000 can be imposed on owners operating outside the law.
Tourist Rental Regulations
The financial interest remains real, especially in:
– highly sought-after Provençal villages (Uzès, Saint‑Rémy‑de‑Provence, L’Isle‑sur‑la‑Sorgue);
– charming regions like the Dordogne, Languedoc, or the Loire Valley;
– certain coastal or Alpine resorts where stays follow one another almost year-round.
Key points to consider for success in tourist rentals, especially for expatriates.
Anticipate periods of high demand and off-peak activity, which impacts cash flow.
Complex management of cleaning, check-in/out, and regular property maintenance.
Regulations often change depending on cities and countries, requiring careful monitoring.
Successful expatriates often entrust management to specialized agencies or concierge services.
New Build, Renovation, and “Value Add”: Leveraging Taxation and Value
France also offers opportunities for more seasoned expatriates, who wish to optimize tax and create value.
New builds have several attractions: recent energy standards, reduced notary fees (2–3% instead of 7–8% for existing properties), potential tax schemes (like Pinel for certain operations), and often easier access to financing at good rates. In expanding cities like Montpellier, Toulouse, Lyon, or certain districts of Marseille, these developments can accompany the upgrading of entire neighborhoods.
Renovation / value‑add involves buying an undervalued older property, updating it (and bringing it up to energy standards), then renting it at market rate. This is a particularly relevant strategy in gentrifying cities or in buildings from the 1970s–1990s needing aesthetic and technical upgrades. It allows investors to benefit from the French market’s high sensitivity to comfort criteria (balcony, insulation, fitted kitchen, etc.) and energy labels.
Energy renovation work has a double advantage: it increases the property’s value and may qualify for public grants like MaPrimeRénov, which covers a significant part of the costs for certain profiles and types of work.
The Legal Framework: A Market Open to Foreigners
Legally, France is one of the most open countries in Europe: there are no specific restrictions on real estate purchase based on nationality. An American, Canadian, British, Asian, or other national can buy an apartment in Paris, a house in Provence, or a chalet in the Alps under the same conditions as a French citizen.
No quotas, no prohibited zones (outside extremely specific cases related to national defense) limit these acquisitions. The same property rights apply, and the same procedures are followed.
It is crucial to understand that buying real estate in France does not automatically confer a right of residence. There is no ‘golden visa’ linked to purchase. Although property ownership can strengthen a visa application by proving resources, ties, or accommodation, it is not a free pass to obtain a residence permit.
To stay for more than 90 days within a 180-day period, a non-European must apply for a long-stay visa suited to their situation (visitor, employee, entrepreneur, Talent Passport, etc.). After five years of continuous residence, they can then apply for a long-term resident card, or even naturalization, subject to conditions (French language level, integration, clean criminal record, etc.).
How Buying a Property in France Actually Works
For an expatriate, the process may seem more cumbersome than in their home country, but it is highly codified. The notary plays a central role: a public officer appointed by the Ministry of Justice, they secure the transaction for both parties and for the state.
The typical sequence of an acquisition looks like this:
The purchase of real estate in France by a non-resident follows a structured process. It begins by defining a search area and a budget including the purchase price, notary fees (7-8% for existing properties), renovation costs, and a 10-15% safety margin. The search is conducted via online portals (SeLoger, Le Bon Coin, etc.) and can be facilitated by a local agent. A written offer, often conditional, is then made. If accepted, a preliminary sales agreement (compromis de vente) is signed, with a deposit of 5 to 10%. The buyer then benefits from a 10-day cooling-off period. Securing financing, protected by a loan contingency clause (45 to 60 days), is crucial. The notary conducts legal and technical checks (cadastre, mandatory diagnostics). Finally, the authentic deed of sale is signed at the notary’s office after 2 to 3 months, with payment of the balance and handover of keys.
For expatriates, the good news is that it is not mandatory to be physically present. A signed power of attorney (and, if necessary, legalized) allows a representative or the notary’s clerk to sign on your behalf. Notaries increasingly use videoconferencing and electronic signatures to simplify these procedures.
What Acquisition and Holding Costs Really Amount To
One common pitfall for foreign buyers is to underestimate the total cost of the operation. In France, listings always distinguish between the net seller price and additional costs.
Purchase Costs
For an existing property (over 5 years old), you should budget for:
– Transfer duties and taxes: approximately 5.8 to 6% of the price in most departments.
– Notary fees: a regulated scale, bringing the total “notary fees” to a range of 7 to 8% of the price (including transfer duties).
– Potential agency fees: often included in the listed price (mentioned as FAI or HAI), ranging from 3 to 8% of the price.
– Bank processing fees and mortgage guarantee costs if you take out a loan (around 0.5–1% of the loan amount).
– Cost of any additional diagnostic or technical inspection, if you commission a more in-depth audit than the mandatory diagnostics.
Purchase price of an existing apartment, before including fees and an improvement budget.
For a new-build property sold off-plan (VEFA) or less than 5 years old, the scheme changes: the price is subject to VAT (generally 20%, already included in the listed all-in price) but transfer duties are reduced to 0.7%. “Notary fees” then typically amount to around 2–3% of the price.
Annual Taxes and Charges
Once an owner, you will have to pay several recurring items:
In France, owners must anticipate several annual expenses. The property tax (taxe foncière), calculated on the cadastral rental value, varies greatly by municipality but is generally well below American levels. The residence tax (taxe d’habitation) is abolished for primary residences but due for secondary ones. Co-ownership charges (common maintenance, insurance, equipment) are estimated at around €50/m²/year. Multi-risk home insurance is mandatory (€200–500/year on average). It is also prudent to budget for routine maintenance and mandatory major works, like facade renovation.
For a rental investor, a large portion of these expenses (management fees, loan interest, renovations, insurance, etc.) is deductible from taxable rental income under certain tax regimes.
Financing as an Expatriate: What French Banks Expect
Contrary to popular belief, it is neither essential to reside nor to work in France to secure a mortgage. The French banking system is accustomed to dealing with non-residents, even though requirements are stricter than for residents.
The main principles are as follows:
To obtain a mortgage in France as a non-resident, several conditions apply. The required personal contribution is generally 20 to 30% of the price, potentially reaching 30–40% for certain profiles outside the EU. The debt-to-income ratio is capped at 35% of gross monthly income, sometimes reduced to 30–33% for higher-risk profiles. Income stability is crucial: a permanent contract (CDI) is preferred, while self-employed individuals must present 2 to 3 years of accounts. The minimum loan amount often ranges between €100,000 and €250,000. Finally, fixed-rate loans over 15 to 25 years are the most common, with options like variable rates or interest-only loans reserved for specific cases.
Interest rates have become attractive again: after a peak around 4.5% in 2023, they were between 3.1% and 3.5% for a resident in 2025. Non-residents generally pay a premium of 0.3 to 1 point, bringing rates to around 3.5–4% for a 20–25 year loan. Projections for 2026 anticipate stability or a slight decrease within this range, following European monetary policy.
The bank frequently requests: proof of income, bank statements, and information on monthly expenses.
– opening a bank account in France to domicile flows and repayments;
– taking out borrower’s insurance (death-disability), sometimes through their partner, although the law allows choosing another;
– a very complete application: ID, proof of address, account statements, tax returns, employment contracts, possibly credit reports from the country of residence and certified translations.
Using a broker specialized in expatriate profiles significantly facilitates the process, by targeting banks open to your nationality and situation (income in foreign currency, entrepreneur status, etc.).
Taxation: What a Non-Resident Owner in France Needs to Know
Owning property in France means entering the French tax radar, at least concerning that property. This does not necessarily mean punitive double taxation, as France has signed numerous bilateral tax treaties, but requires a good understanding of the landscape.
Taxes Related to Property Ownership
For a non-resident, three categories of taxes are essential:
The owner is liable for the annual property tax (taxe foncière), calculated on the rental value of the property and local authority rates. The residence tax (taxe d’habitation) remains due for secondary residences, with a possible surtax in tourist municipalities. The Real Estate Wealth Tax (Impôt sur la Fortune Immobilière – IFI) applies to net real estate assets exceeding €1.3 million. For non-residents, only property located in France is concerned. Real estate debts are deductible, and the primary residence benefits from a 30% allowance for French tax residents.
Rental Income
If you rent out your property, your rental income is taxable in France, even if you are a tax resident elsewhere. You are, in principle, subject to:
– income tax, according to progressive brackets, with a specific minimum rate of 20% for non-residents (above a certain income threshold, a higher rate may apply);
– social contributions, which usually amount to 17.2%, but can be reduced to 7.5% for taxpayers affiliated with a social security scheme of an EU/EEA country, Switzerland, or the United Kingdom.
Several tax regimes exist for rental income:
– the simplified micro regime, with a standard deduction (e.g., 30% for unfurnished rental, 50 to 71% for furnished rental depending on the case);
– the actual regime, which allows deducting actual expenses (loan interest, taxes, management fees, renovations, insurance, etc.) from rental income.
The LMNP (Non-Professional Furnished Landlord) status is a privileged tax regime for expatriates investing in French rental real estate. It notably allows for deducting accounting depreciation on the value of the property and furniture. This deduction significantly reduces, or even cancels out, the taxable base on rental income for several years.
Resale: Capital Gains Taxation
Upon resale, a non-resident may realize a taxable capital gain. This is taxed at:
– 19% for income tax;
– additional social contributions (17.2% under the standard regime, possibly 7.5% in certain European cases).
This taxation is, however, mitigated over time by a system of progressive allowances. For the “income tax” portion, the capital gain is fully exempt after 22 years of ownership. The social contributions are extinguished after 30 years of ownership. Surtaxes apply to very large capital gains but mainly concern high-end transactions.
Certain specific exemptions exist (sale of a primary residence for a resident, situations of returning to the home country, etc.), but they require case-by-case examination.
Managing Your Property Remotely: The Key Role of Managers and Concierge Services
One of the main practical hurdles for expatriates is: how to manage an apartment rented in Marseille or a vacation home in the Dordogne when living in Singapore, Montreal, or London?
The French rental management market is structured around property management and concierge companies, which must hold a professional card issued by the Chamber of Commerce and Industry. It includes both large national networks and specialized players, for example, focusing on expatriate clients or short-term rentals.
These managers can handle:
Professional property management covers all stages and responsibilities related to a property. This includes: finding and selecting tenants, drafting leases and inventory checks; collecting rent, monitoring arrears, and daily relations with occupants; coordinating contractor interventions and monitoring work. For seasonal rentals, it also handles online listings, cleaning, key handover, and maintenance.
Fees generally range between 7 and 12% of collected rents for standard management, and higher for premium concierge services. These fees are tax deductible under the actual expense regime, mitigating their impact.
For an expatriate wanting a “hands-off” approach, this is often a cost well invested, especially since statistics show that professionally managed properties benefit from better occupancy and rent optimization, which can offset part of the fees.
Real Estate and Residence: Linking Investment and Life Project
Even though buying a property is not enough to obtain a residence permit, it often fits into a broader strategy. Expatriates settling in or returning to France frequently combine several schemes.
The country does not offer an investor passport based solely on real estate purchase, but it has established multi-year permits targeting active investors and entrepreneurs, like the “Talent Passport – Investor” which requires investing at least €300,000 in a French company and creating or maintaining jobs. Real estate can come into play when it involves, for example, a hotel or para-touristic project structured as a company.
To obtain a long-stay “visitor” visa to live in France without working, one must prove sufficient resources (passive income, pensions, rental income, dividends) and health insurance. Although not mandatory, owning local housing facilitates proving accommodation and strengthens the application.
In the long term, after five years of uninterrupted legal residence, an expatriate can apply for a 10-year resident card, or even French nationality if they meet integration and language mastery conditions. In this journey, real estate often plays the role of a wealth foundation, offering stability and local anchoring.
How to Choose Your City When Investing from Abroad
The question of “where” is arguably the most delicate. An expatriate does not always have an intimate knowledge of neighborhoods or local dynamics. Yet, France offers highly differentiated city profiles.
A few key trends can help:
Overview of the main rental investment opportunities based on objectives and investor profiles.
Paris and its beautiful central districts (Marais, Saint‑Germain, Latin Quarter) offer maximum heritage value and near-guaranteed liquidity, despite modest net yields. Particularly appreciated by expatriates.
Employment hubs like Lyon, Bordeaux, Toulouse, and Nantes, highly connected and experiencing demographic growth, offer strong rental demand for stable investment.
Marseille, Saint‑Étienne, Nancy, Le Mans, or certain university cities can offer gross yields around 5–7%, subject to rigorous selection of location and tenant type.
The French Riviera, Provence, Dordogne, coastal Brittany, or the Alsace wine region combine a second home and seasonal rental, with exposure to tourist fluctuations.
Montpellier, Rennes, Pau, Bayonne, or regional capitals like Bourges or Arras offer more affordable entry prices with growing attractiveness (transport, culture, European status).
In all cases, caution requires preparatory work: analysis of market rents (specialized platforms, public data), understanding of local rental rules (rent controls, tight zones, restrictions on tourist furnished rentals), and identification of urban projects (new tram lines, development zones, university hubs).
The Main Risks… and How to Reduce Them
No investment is risk-free, even in a country as regulated as France. For an expatriate, some threats are specific:
Rental investment in France involves several specific risks, but measures exist to manage them. The vacancy risk, higher in rural areas, is managed by targeting tight markets and budgeting for 8 to 10% annual vacancy. The risk of tenant default, complex due to strong legal protection, requires rigorous screening, rent guarantee insurance, and a local manager. The currency risk for foreign investors can be hedged with financial instruments or partial portfolio alignment in euros. Regulatory risk (taxation, energy performance, short-term rentals) requires active monitoring and diversification. Finally, the administrative and language risk is greatly reduced by surrounding oneself with French and English-speaking professionals (notary, lawyer, manager).
Despite these risks, the fundamentals remain solid: housing shortage, cultural weight of ownership, massive tourism, quality infrastructure, relative political stability. For an expatriate accepting a medium to long-term approach, France thus constitutes a credible building block in an international diversification strategy.
As a Roadmap
Investing in real estate in France as an expatriate is far from a quick sprint. It is a project that requires preparation, often over several months, following a logical sequence:
To succeed in real estate investment abroad, it is essential to follow a structured approach: 1. Clarify your objectives (personal use, yield, capital gain, preparing a return, tax optimization). 2. Define a realistic budget including all ancillary costs and a safety margin. 3. Select one or two zones consistent with your strategy. 4. Pre-negotiate your borrowing capacity with a bank or broker to obtain a “comfort letter”. 5. Assemble a local team (real estate agent, notary, and possibly a tax lawyer and manager). 6. Visit, physically or virtually, enough properties to understand price ranges and demand. 7. Do not sign any document without clear translation and explanation, especially regarding contingency clauses and penalties. 8. Anticipate, from the purchase stage, the questions of inheritance (drafting a will designating applicable law) and future exit (rental, resale, transfer).
French real estate does not promise quick fortunes or extravagant yields. Instead, it offers a rare compromise: a robust legal framework, a deep and diversified market, financing possibilities, and a territory that remains one of the most attractive in the world to live in for a few months a year, work, or prepare for retirement. For an expatriate looking to anchor part of their wealth in continental Europe, it is a candidate hard to ignore.
A French business owner around 50 years old, with a well-structured financial portfolio already in Europe, wanted to diversify part of his capital into residential real estate in France to seek rental yield and consolidate his exposure to the euro. Allocated budget: €400,000 to €600,000, without using credit.
After analyzing several markets (Île-de-France, Lyon metropolitan area, French Riviera), the chosen strategy was to target an apartment or rental property building in a growing city like Lyon or Nantes, combining a target gross rental yield of 6 to 7% – the higher the yield, the higher the risk – and medium-term appreciation potential, with a total cost (acquisition + notary fees + light renovations) of around €500,000. The mission included: selection of the city and neighborhood, connection with a local network (real estate agent, notary, accountant), choice of investment structure (direct ownership, via SCI or commercial company) and definition of a wealth diversification plan over time.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
