Transfer taxes in France 2024-2025

Transfer taxes in France 2024-2025: key information for property buyers

When purchasing a resale property in France, transfer taxes, also referred to as dmto (droits de mutation à titre onéreux), represent a significant portion of the transaction costs. Often mistaken for "notary fees," these taxes are applicable to property transactions between June 1, 2024, and May 31, 2025, and include registration duties and land registration taxes. This guide will explain everything you need to know about dmto, including its definition, applicable properties, tax rates by department, and how to calculate them.

What are transfer taxes (dmto)?

Dmto refers to taxes levied during real estate transactions, also known as property transfers. These taxes are distributed among three entities:

- Departments (the largest share),

- Municipalities,

- The state (a minimal share).

Dmto is primarily composed of two key taxes:

1. Departmental land registration tax (tpf),

2. Municipal surcharge on the tpf and registration duties.

In some cases, additional charges may apply, such as a 0.6% tax on certain commercial premises in Île-de-France.

What types of properties are subject to dmto?

Dmto applies to various categories of real estate and property rights, including:

- resale properties (houses, apartments, buildings),

- new properties subject to vat,

- building plots,

- usufruct and bare ownership of real estate.

How are dmto rates determined?

Dmto rates differ across departments. The standard rate is set at 3.80% by French law (article 1594 D of the tax code). However, departmental councils can raise this rate up to a maximum of 4.50%.

For the period between June 1, 2024, and May 31, 2025, 97 departments have adopted the maximum rate of 4.50%, with only a few exceptions:

- Indre: 3.80%,

- Morbihan: 3.80%,

- Mayotte: 3.80%.

Potential rate increase in 2025

Beginning in 2025, the government proposes a temporary increase of the maximum dmto rate to 5% for a period of three years. This adjustment aims to boost departmental fiscal revenues.

Example of dmto calculation

For a resale property purchased at €200,000 in a department with the maximum 5.81% rate, the dmto calculation would be as follows:

- Purchase price: €200,000

- dmto rate: 5.81%

- dmto amount: €11,620

This total includes property-related taxes but excludes notary fees.

Are there advantages for new properties?

In the case of new properties, dmto is significantly reduced to 0.715% of the pre-tax sale price. This preferential rate applies to properties subject to vat, such as off-plan purchases (vefa). However, new properties sold by individuals remain subject to the standard dmto rate.

Who pays the dmto?

In most cases, dmto is paid by the buyer. However, in specific agreements known as "acte en main" transactions, the seller may cover these costs.

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Sources : https://www.collectivites-locales.gouv.fr/