US TOLLFREE
1800 583 2779
UK FREEPHONE
0800 032 5039
Sign up for the KIG NEWSLETTER and receive advance notice of new release properties and developments
A : Yes and No. For instance, title deeds must be signed in front of a Notary Public ("Notaire"). As in England the purchase of a property in France is divided into two stages. First there is a preliminary contract called the "contrat de vente sous conditions suspensives" or "compromis de vente" or "promesse de vente". This may be prepared either by a Notary Public ("Notaire") or by an estate agent. In France Notaries often themselves act as estate agents. Secondly there is a formal deed of sale called the "Acte de Vente". This is signed in front of a Notary Public or "Notaire". The two documents are normally separated by about 10 to 12 weeks.
Q : What if I change my mind about the purchase?
A : The French have introduced a 'cooling off period' of 7 days during which you can, without giving any reason, simply cancel the contract you have signed.
Q : In whose name should I buy the property?
A : There are a number of ways to purchase the property : in your own name, in the joint names of you and your wife or copurchaser(s), in the name of your adult children or in the name of somebody who will eventually inherit the property from you, in the name of a special type of French company called an SCI (these exist mainly to own and manage properties in France), in the name of an ordinary limited company, whether English or French. Each method has its own advantages and disadvantages. Everything depends on your own personal circumstances. We shall be pleased to discuss the various ways of buying with you and to advise as to the most advantageous method for you. It is worth paying careful attention to this point because of the potential tax and other savings that can be made at a later stage. These tax savings arise because of the French system of inheritance tax under which gifts on death can still attract very high rates of taxation. It is possible to pay 60% tax on inherited wealth. The tax savings also arise because of the way that each time a property changes hands, certain taxes and fees become payable. If, therefore, you can prevent the property being inherited and minimise the number of times it changes hands, you can greatly reduce your tax liabilities. As is always the case with tax savings schemes, there is a danger that the Government can come along and close the loopholes that allow the schemes to operate and, as always, there are disadvantages to them as well as advantages. In each individual case, you will have to weigh up the advantages and the disadvantages and decide how you wish to deal with the transaction.
Q : What is the Preliminary Contract?
A : This is a binding written agreement between you and the seller of the property by which you agree to buy it. It is made subject to conditions known as "conditions suspensives" or "clauses suspensives". These state that the contract will only become binding if certain things happen — for example, if the Buyer obtains a mortgage within a stated time. It is very important to be accurate when drafting these conditions and to make sure that they cover all of the points that are important to you. The Buyer will be released from the contract if the conditions are not fulfilled. On the signature of the preliminary contract a deposit, normally of 10%, is paid either to the Notaire or to the estate agent. Not all estate agents are legally entitled to receive a deposit.
Q : What do I need to know about loans and mortgages?
A : If the buyer intends to obtain a loan to buy the property he needs to say so in the preliminary contract. The contract will be cancelled if he is unable to obtain a loan specified in the conditions. While the Notaire is dealing with the drafting of the title deeds etc., the buyer will be busy arranging the finance for the purchase. Financing the purchase of the property may take several forms depending on the circumstances : a first (or second) mortgage on your existing property, a mortgage in Euros on the French property from a French lender, or a mortgage from one of the main French banks made in Sterling and secured by a charge over the French property. French mortgages or British mortgages organised by French banks operating in the UK do not follow the same pattern as UK mortgages secured on UK properties. The loan is usually limited to 80% of the assessed value of the property — our experience is that it is usually nearer 60% — and by the capacity of the borrower to repay the loan. No survey of the property is usually required to obtain a mortgage. Be careful. The rule "caveat emptor" — let the buyer beware — applies in France.
Q : What is the Acte de Vente?
A : This is the title deed proving who is the owner of the property and containing a detailed description of the property itself. Whereas the preliminary contract can be prepared by us or by an estate agent, the Deed of Sale has, by French law, to be prepared by and signed in front of a Notaire.
Q : Who is the Notaire?
A : The Notaire is a public official who is there to prepare title deeds relating to the sale and purchase of land and to put on the public record the fact that the deed has been signed in his presence and understood by the parties concerned. They enjoy a very privileged and highly respected position in French society. The Notaire does not represent or look after the interests of any one party. You should also note that, in the countryside, very often there is only one Notaire available and he works on a monopoly basis in respect of the district covered. Often one Notaire deals with both parties to the transaction. The Notaire will also make various title checks about the property and make sure that the property to be sold matches the title deeds and registry documents, establish the identity of both parties (with the help of birth and marriage/divorce certificates), make sure that the seller is indeed the owner of the property to be sold, make sure that there are no covenants other than those already mentioned in the preliminary contract which might adversely affect the property, search the Land Registry with a view to establishing whether or not there exist any restrictions to the right of disposal of the property, such as easements or mortgages over the property, if the property is mortgaged he will ensure that the purchase price will be sufficient to redeem the mortgage completely, and obtain from the local Town Hall a planning certificate showing the planning rules relevant to the property. Finally, he will inform any people entitled to preemption rights of the impending sale, giving them two months within which to decide whether or not to take advantage of their rights.
Q : Do I have to be in France to complete the transaction?
A : The person buying the house may attend in person before the Notaire, but, if this is inconvenient, arrangements can be made for a Power of Attorney to be granted enabling another person to attend on their behalf. Prior to completion at the Notaire's office, he will have sent the Buyer a completion statement showing the balance of the purchase price of the land and all other registration fees for the purchase which are the responsibility of the Buyer. Once the deed of sale has been signed by both parties, the Notaire will register the transfer (as well as the mortgage if applicable) at the Land Registry (Conservation des Hypothèques). This procedure is similar to that in the UK but the original deed will remain with the Notaire who will give a certified copy to the buyer.
Q : Can I take money into and out of France freely?
A : Yes.
Q : How do I pay the money?
A : When the Acte de Vente has been signed the purchase price is handed over by the Notaire to the Seller. The purchase price must be in the hands of the Notaire by the day of completion, unless other specific arrangements have been signed with the Notaire. The Notaire then pays the money to the seller. The important things to remember are that transferring money to France does take time and that is not as reliable as transfers in the UK.
Q : What does all this cost?
A : This will depend upon if your property is existing, new, or leaseback. With existing properties, the Buyer should normally expect to pay fees and taxes of about 8-9% of the purchase price. These break down, roughly, as follows : Land Registry taxes (known as TPF - Taxes de publicité foncière), comprised of a departmental tax @ 3.6%, a communal tax @ 1.2%, and a further tax of 2.5% calculated on the amount of the Departmental tax is also required @ 0.09%. Stamp Duty fees vary according to the size and importance of the Deed of Sale. Normally one should expect to pay typically £200. Miscellaneous expenses – calculated according to various documents that the Notaire would have had to search in order to draft the Deed of Sale. They usually amount to less than £500. The Notaire's fees charged on the conveyance (and on the mortgage if applicable). They are calculated according to the value of the property and the size of the mortgage. On the conveyance, the fees are calculated as follows: for a property worth up to €3050 - 5%, between €3050 and €6100 - 3.3%, between €6100 and €16800 - 1.65%, over €16800 - 0.825%. On the mortgage, the fees amount to two thirds of the rates mentioned above. The whole fee is subject to VAT at 19.60%. If the property is new (defined by law as a property built within the last 5 years and now sold for the first time since built), the other fees and expenses are, broadly speaking, set out as above but there is an additional tax payable. VAT is charged on the price of the property at 19.6%. This tax is often included in the price of the property as quoted to you. As some small compensation Land Registry Taxes (TPF) are paid at a reduced rate of 0.60% calculated on the price exclusive of VAT. In the case of Leaseback, this VAT is fully refundable to the foreign investor.
Q : After I have settled in, what are my continuing obligations?
A : If you spend less than 184 days a year in France then you are generally speaking classed as a "non-resident" and you must name a fiscal representative, pay your local rates ("impôts locaux"), make a declaration of all your capital assets in France and, where appropriate, pay tax on them, pay income tax on any income deriving from your activities in France, if you have a car, you must pay car tax and arrange suitable insurance cover, you must pay your electricity, water and other bills.
Q : What happens if either I or my Co-owner dies?
A : Jointly owned property does not automatically pass to the survivor. It will (subject to certain limitation imposed by French law) be dealt with according to any instructions which you leave in your Will (either English or French) or, if you do not leave a Will, under the rules relating to intestacy.
QUICK CONTACT FORM
Knightsbridge Investment group Launches Panama website
Knightsbridge Investment Group are proud to launch there new website dedicated to Panama Real Estate
more
New Law Gives Additional Boost to Already Booming Real Estate Market
By Knightsbridge Investment Group.
'Law 41', recently passed by Panama's National Assembly, give's a further boost to the already booming real estate market in the Republic of Panama.
more
Panama-US Trade Accord to go ahead
Panama's Free Trade Agreement with the United States is expected to be signed this month say US government officials, with subsequent approval by Congress.
more
An ecological microcosm of the Americas
The Dominican Republic still has areas that are raw and unconquered – a spectrum of topographies that are unmatched in the West Indies.
more
The Dominican Republic, the NUMBER ONE tourism destination in the Caribbean.
The Dominican Republic has become the NUMBER ONE tourism destination in the Caribbean. It now attracts a large number of tourists that used to visit other countries in the region.
more
LAW 305-68
Most of the foreign investment in the Dominican Republic has focused upon the beach tourism sector.
more
Setting up a Panamanian Corporation
Many people who invest in Panamanian real estate choose to register their land or property under the name of a Panamanian corporation
more
International property gets cheaper for Brits
Yesterday the British pound reached a 15-year high against the US dollar, this is great news for overseas property investors.
more
Panama has best growth forcast in Latin America
Panama continues to make the headlines in Latin News with increased GDP
more
Panama property ripe for investment
Property in By Knightsbridge Investment Group The Dominican Republic is a colorful tapestry of Spanish, French, Haitian, The Panama property market is receiving intense international interest from property developers and investors alike. The general consensus of opinion in the property investor world right now would seem to be that you can’t go wrong with investment real estate in Panama. Panama is a strategically important, stunning, tropical Central American country growing increasingly popular with real estate investors particularly from Northern America and Western Europe. The real estate investment potential in Panama has been growing directly in line with international interest in Panama Royal Caribbean To Offer Southern Caribbean Itineraries From Colón, Panama Here are 8 great attributes to any smart Panama investor. Coming to know a lot of these folks, and with many of them as personal friends, it can be helpful to look at the commonalities of those who truly succeed in the Panama real estate market, to deline Buy a home in Monaco and you'll enjoy iconic beaches, glamorous casinos, a renowned arts and music scene, pulsating nightlife and boutique-packed boulevards. Panamas discount paradise Thanks to Panama’s ‘Law No. 9’, foreign residents can enjoy a first-class lifestyle in a beautiful tropical haven while saving thousands of dollars per year on just about everything, in DFW International Airport Adds Panama, Turks and Caicos Islands to Global Portfolio The World Tourism Organization reports that international tourist arrivals worldwide rose by over 6% from January through April 2007 The Bavaro Open tournament will be held again at the Cocotal Golf & Country Club in Punta Cana. The XVII International Blue Marlin Tournament is ready for 26-28 July in Cabeza de Toro, announced organizers of the Santo Domingo Yacht Club. Loma Quita Espuela is open to true lovers of eco-tourism. By participating in the programmed excursions, visitors are contributing to preserve the mountain. Hard Rock Cafe opened this month at the Palma Real Shopping Village in Bavaro. Copa Airlines is now flying from Punta Cana to Panama City, Panama. American Eagle has announced that its new flights to Samana will start on 13 December 2007. Recent hotel construction in Santiago has placed the nation's second largest city on the tourist map. The Ministry of Tourism published an advertisement in Hoy newspaper (16 August) with tourism numbers. The advertisement highlights the fact that travel to the Dominican Republic is up from 1,925,565 tourists in 1996 to 3,965,055 in 2006 A strengthening Canadian dollar and economy, on the positive side, is boosting Canadian travel. The purchase of real estate in Panama can be confusing and uncertain if you are not well guided, or it can be a very pleasant experience. A dynamic services sector, a strong investment climate and the Panama Canal expansion programme are expected to ensure that economic growth in Panama exceeds last year's 8.1%. As you might know there's rather limited golf opportunities in Panama ... it's a great place for golf with more courses on the way, so I thought I'd do a quick review. The groundbreaking at the Panama Canal on Sept. 3 won't involve the usual golden shovels; instead, dignitaries of the order of Organization of American States Secretary General Jose Miguel Insulza and former U.S. President Jimmy Carter will be treated A few hundred years ago, Panama was a malaria-infested tropical swamp of no particular interest to anyone. The Panama Canal is still an engineering marvel, even 100 years after building began. Only four days after the formal start of work to expand its world-famous canal, Panama will mark on Friday the 30th anniversary of the historic Torrijos-Carter Treaties. Cruise ships will have more space to operate once the $5.25 billion expansion of the Panama Canal is completed by 2014. Panama is one of the most modern and progressive tourism destinations in Central America. On September 3rd, Panama has officially started a new project to enlarge the Panama Canal so that even the largest ships can pass through it. When we first started looking at a Panama Retirement back in 2002 - 2003 we made up a list things we wanted and we also looked at the things we wanted to escape from. Panama will eradicate illiteracy in the country by 2009, Panamanian Social Development Minister Maria Roquebert announced Saturday A new kind of tourism is sweeping into Panama, but these visitors are not just coming for sun and fun. Kite surfers are gearing up for the British Open this weekend. Charles Starmer-Smith was initiated into their sport in the warmer waters of the Caribbean. Dominican Republic -- Sitting behind a massive wooden desk, the Dominican Republic's minister of tourism lists the attractions that lure visitors to this Caribbean nation: endless beaches for sun-seekers, white-water rapids for adrenaline junkies,mere The United States and Brazil have chosen the Dominican Republic as one of the four countries where biofuel will be produced with their assistance in financing and technical support. This week I will be in Panama City, Panama for an equipping conference with a number of preachers who work in the Darien Province of Panama. It's the start of a wave of Baby Boomers retiring abroad. This has been made an easier choice by the ease of long-distance travel, internet communications, well-trained doctors and surging US prices that have made traditional retirement sites like Flo Americans are traveling abroad for medical care like never before and now looking to Panama as a destination to cure their insurance woes, high prices and delaysfor treatment back home. The Panamanian Institute of Turismo (IPAT) informed today that the country is prepared to become the destiny preferred of the European, and indicated in this sense that Dutch company KLM will announce in October the beginning of a new route between Panama
more
Panama's property market in progress
more
Long Term Property Investment in Panama is Excellent opportunity
Panama is currently one of the most considered and researched locations with many investors.
more
The Dominican Republic
and African influences woven by a rich and storied history.
more
Panama Property
more
Panama Investment Property Buying Tips
more
Panama for Real Estate Investors
more
Panama Real Estate Investment Potential
more
Royal Caribbean Itineraries from Colon, Panama
Cruise Line Continues Growth in Latin America For 2008-09 Season
more
How to be a smart Panama investor
more
World's Most Overpriced Real Estate Markets: Its not Panama
more
Panamas 'discount paradise'
more
DFW International Airport Adds Panama, Turks and Caicos Islands to Global Portfolio
more
Travel up 6%
more
Bavaro Open
more
Sports fishing in Punta Cana
more
True ecotourism
more
Hard Rock Cafe in Punta Cana
more
Copa starts new flights
more
American Eagle to Samana
more
Santiago goes tourist
more
Big numbers for tourism
more
Canadian travel to DR way up
more
4 Tips to Buy Real Estate in Panama
more
Panama's Economy Surges Ahead
more
A Quick Review of Golfing Opportunities in Panama
more
Can Panama Be the Americas' Hong Kong?
more
Panama Canal: work begins on a $5bn project to widen the canal that revolutionised the transport of goods
more
A Historic Moment for Panama
more
30th year of Panama Canal
more
Expansion of Panama Canal Begins
more
Panama Cruises
more
Panama Canal To Be Enlarged
more
Escape to Panama!
more
Panama to eradicate illiteracy by 2009
more
Panamas Health Tourism Boom
more
Kite surfing: taking wing over the waves
more
Retirees find their 'paradise'
more
Dominican Republic to produce biofuel
more
National Geographic: Into the Wild Panama Rainforest
more
Baby Boomers Flock to Panama
more
Uninsured Americans traveling to Panama for health care
more
Panama is prepared to become tourist destiny of European
more
Bulgaria 
Canada 
Estonia 
France 
Italy 
Spain 
Dominican Republic 
Brazil 
Germany 
Panama 
Egypt 
Belize