Sale deed fees: what to plan for during a transaction

The sale deed generates costs for both parties, well beyond the price of the property. Typically, the buyer provisions 7 to 10% of the price in the resale market. On the seller’s side, one can see 30% of their net price disappear after capital gains tax, inspections, lien releases, and commissions… A €500,000 apartment can thus cost the buyer €50,000 in various fees. Meanwhile, the seller actually receives only €350,000 after all deductions. These are therefore substantial amounts that go away between unavoidable legal obligations and negotiable fees. Let’s review these different “sale deed fees”—it affects your cash flow!

What fees are charged to the buyer?

Transfer taxes: the most significant sale deed fees

Transfer taxes represent the bulk of acquisition costs, as is well-known. They are commonly called “registration fees,” for the simple reason that they feed the coffers of the State and local authorities. The standard rate is around 5.80% of the sale price.

Since April 1, 2025, departments have had the power to increase it by an additional 0.5 points. This can raise the rate up to 6.30% in the departments that have opted for this increase. Therefore, there are now significant variations from one department to another!

These transfer taxes are added to the notary fees proper. Together with the price, they form the basis of the overall acquisition budget.

If we look at the details, this tax is broken down into three parts—the departments slightly adjust these rates within the legal framework:

• The departmental tax (around 4.50%),
• The municipal tax (around 1.20%),
• Assessment fees for collection (around 0.10%).

Practical illustration: for a property at €800,000, transfer taxes amount to approximately €46,400. And up to €50,480 in departments that applied the increase. This difference inevitably influences the geographical choices of savvy investors.

Important: this 0.5-point increase does not apply to first-time buyers when the acquired property is intended to be their primary residence. First-time buyers = persons who have not owned their primary residence in the previous two years.

Notary fees: regulated compensation

Contrary to popular belief, the notary receives only a fraction of the so-called “notary fees!” Their remuneration is strictly regulated by decree. The notary calculates it according to a national decreasing scale. For a sale at €300,000, the notary’s fee is around €3,900 excluding VAT. At €1 million, it is about €8,500 excluding VAT. VAT at 20% is added systematically.

Since 2020, notaries can grant a discount of up to 20% on their fees for transactions over €100,000.

But then, what composes the rest of these “notary fees”? There are several disbursements that complete the bill:

• Urban planning documents,
• Land registry certificates,
• Cadastre fees,
• Mortgage registry fees,
• Etc.

Generally budget between €800 and €2,000 depending on the complexity of the file. The real estate security contribution adds about 0.10% of the price. These fees allow, among other things, the preparation of the authentic sale deed and verification of the seller’s title deed.

Note that purchasing new construction benefits from a more lenient tax regime. Transfer taxes disappear and are replaced by VAT already included in the price. Fees then drop to about 1.5 to 2% (with notably a 0.715% tax on the pre-VAT price paid to the land registry), compared to 7 to 10% in the resale market.

Be aware, this regime applies only to off-plan property sales (VEFA) or new housing sold by a VAT-registered professional. The resale between individuals of a recent property remains subject to the classic transfer taxes.

What fees are charged to the seller?

Capital gains tax: taxation of profits

Capital gains tax represents the heaviest burden for the seller. Its calculation has become more complex in recent years, such that the final amount received is often surprising.

The principle is as follows: the difference between the sale price and the purchase price generates a capital gain taxable at 19%, plus social contributions of 17.2%, for a total of 36.2%. Exemptions apply based on the period of ownership:

• 6% reduction per year from the 6th to the 21st year,
• 4% reduction in the 22nd year for income tax,
• Full exemption applies after 22 years for income tax, and after 30 years for social contributions.

Example: a property bought for €300,000 and resold for €500,000 after 10 years will show a gross gain of €200,000. After deductions (30% for income tax, 6.5% for social contributions), the taxable gain is €140,000 for income tax and €187,000 for social contributions. Total tax: about €58,000. The seller keeps only €142,000 of their gain…

Without going into too much detail, note that primary residences benefit from full exemption. Work carried out can increase the purchase price under strict conditions. A property appraisal allows you to anticipate these calculations and optimize your sales strategy!

Mandatory inspections: unavoidable costs

It is also the seller who bears the cost of mandatory technical inspections. Their list regularly grows: energy performance (DPE), asbestos, lead, termites, gas, electricity, sanitation, environmental and risk assessment, etc.

Their cost varies according to the area and age of the property. Generally budget the following amounts:

• Studio or one-bedroom apartment: €300 to €500
• Single-family house: €600 to €1,200
• Atypical property or large area: €1,500 to €3,000

Inspections have limited validity periods. A DPE remains valid for 10 years, electricity and gas for 3 years, termites for 6 months. Here, caution: an expired inspection at the time of signing leads to file cancellation and renewal costs.

Mortgage release (mainlevée):

A mortgage loan in progress requires what is called a “mortgage release” to sell. It is an expensive formality, with notary fees (about 0.3% of the remaining capital), cancellation fees, and the land registry tax.

Practical illustration: for remaining capital of €200,000, the release generates about €1,200 in fees. Added to this are the early repayment penalties on the loan, capped at 3% of the repaid capital or six months of interest.

Which fees are shared or negotiable?

Agency commission

The real estate agent’s commission represents between 3 to 8% of the sale price. How it is shared actually depends on local customs and negotiation. There are three possible arrangements:

• Seller’s commission: the seller bears the entire commission. The price is thus listed “including agency fees.”
• Buyer’s commission: the buyer pays, in addition to the net seller price.
• Shared commission: the payment of fees is split, often 50/50.

The current trend favors charging the seller, which helps streamline transactions. The real estate listings in Paris and regions generally specify who must pay the agency fees. Note that the commission itself bears 20% VAT, already included in the announced percentages.

Additional and unforeseen fees

In practice, several “small last-minute fees” often slip into the final bill. From experience, here are the more common small disbursements:

For the seller:

• Condominium area measurement certificate (Carrez law): €100 to €300
• Coproperty establishment if division: €2,000 to €5,000
• Urgent compliance work
• Pro rata of property tax and charges

For the buyer:

• Bank guarantee fees: 1 to 2% of the loan
• Supplementary appraisal: €1,500 to €3,000
• Moving and installation costs

In summary

(NB: estimated fee amounts provided for informational purposes only; this is not investment advice, nor a recommendation.)

Sale deed fees significantly impact the real economy of the transaction. The informed investor who integrates these parameters from the start secures their operation and retains control over their net profitability.