Finances
Financing Your Alpine Property
Whether you're buying with cash, arranging a French mortgage, or using equity from an existing property, understanding your financing options is key to a successful purchase.
French mortgage rates are historically competitive. Many international buyers find it advantageous to borrow in France rather than releasing equity at home.
French Mortgage Options
Fixed Rate Mortgages
The most popular choice for international buyers. French banks offer fixed-rate loans for up to 25 years, giving you certainty on monthly repayments regardless of market conditions.
Typical loan-to-value ratios range from 70% to 85%, depending on your financial profile and the property.
Key Requirements
Proof of income (3 years of tax returns for self-employed)
Bank statements for the last 3 months
Existing mortgage and loan details
Copy of the compromis de vente
Valid passport and proof of address
Tax Considerations
Taxe Foncière
An annual property tax paid by all owners. The amount varies by commune and property size, typically ranging from €500 to €3,000 per year for a typical Alpine property.
Taxe d'Habitation
A residence tax applicable to second homes. While it has been phased out for primary residences, it still applies to holiday properties and can be significant in popular ski resorts.
Capital Gains Tax
Payable when selling a second home in France. The rate decreases with ownership duration, with full exemption after 22 years for income tax and 30 years for social charges.
Rental Income
If you plan to rent your property, you'll need to declare the income in France. There are two main regimes:
Micro-BIC
For furnished rentals earning under €77,700/year. You receive an automatic 50% deduction on rental income, making it simple and tax-efficient for occasional holiday lets.
Régime Réel
For higher-earning properties. You deduct actual expenses (mortgage interest, maintenance, depreciation) from rental income. More complex but potentially more advantageous for active landlords.