Buying a holiday home in France: costs, taxes and the true price of the dream

Thousands of British buyers continue to be drawn to French holiday homes by low asking prices, proximity and lifestyle appeal, but estate agents and owners warn that purchase costs, recurring taxes and upkeep can quickly inflate the true cost of ownership.

There are about 86,000 British-owned holiday homes in France and some buyers arrive expecting bargains: many properties change hands in the €100,000–€250,000 range. Still, experts and recent purchasers say that buying is more about securing a long-term base than making a quick profit. Tim Swannie of estate agent Home Hunts said buyers typically want “a physical base in an area that they love, rather than renting someone else’s home.”

Upfront costs extend beyond the purchase price. Notaire fees, transfer taxes and land registry charges can add around 8 to 9 percent for older properties, and total buying costs are commonly about 10 percent of the purchase price once surveys, legal advice and currency exchange fees are included. Judith Whitlow of Beaux Villages, Savills’ French associate, said buyers should allow for those additional budget lines when comparing prices with the U.K.

Mortgages are available to non-residents, and some buyers cite favourable fixed-rate deals as part of the rationale for buying. Graeme Powlesland, a primary school teacher who bought a four-bedroom house in Normandy for €120,000 in 2015, said a 20-year fixed French mortgage made the purchase feasible. He has renovated an annexe into a rentable gîte and expects rental income to cover about half his running costs.

Annual ownership costs vary widely by region, property type and usage. Two separate taxes apply: taxe foncière, an annual ownership tax, and taxe d’habitation, a tax on second homes. Savills estimates an average taxe d’habitation of roughly €1,000 a year, but local charges fluctuate. Whitlow cites examples of a four-bedroom Dordogne home with a taxe foncière of €1,031 and a similar property in the Aude with a taxe foncière of €2,016.

Running costs commonly include utilities, building insurance, internet, water, garden and pool maintenance and periodic major works such as roof repairs, heating replacement or pool renovations. Charles Cramailh of Leggett Property Management estimates that a typical three- to four-bedroom detached house in Occitanie with a pool and medium garden costs between €6,500 and €12,200 a year to run, excluding second-home tax. Owners quoted in recent interviews reported a wide range of experiences: Rhian and Dave Gait-Parker said their two-bedroom longère in Brittany costs about £2,500 a year to run, while Sue and Tony Bridges in Carcassonne reported annual outgoings of €5,195 after underestimating costs.

Property-management and letting add further layers of cost and complexity. Owners seeking to offset running costs by short-term letting should expect management fees of about 15 to 30 percent of rental income plus professional cleaning and maintenance. Rental income is taxable, and landlords face separate accounting and compliance costs. There are also practical expenses for owners who live abroad: keyholding, regular checks and local contractors can add €1,300–€3,000 a year, while pool and garden services vary by region and season.

The investment case is mixed. France’s Notaires de France reported a 4.2 percent fall in average property prices in 2024, underscoring that buyers are unlikely to see rapid capital growth unless they hold for many years or buy in strong local markets. Some purchasers view a French property as a long-term or lifestyle investment and as a euro-denominated asset that can provide a currency hedge. Others find that changing family circumstances reduce usage and make a house an “expensive ornament.” Kevin and Kirsty Munson of Whitstable are selling their five-bedroom house in the Haute-Pyrenees after less than six years because their sons relocated to Australia.

Comparing buying with renting depends on use. Travel agents say a three-bedroom villa with a pool in the Dordogne might cost £2,000–£3,000 a week in high season; renting six weeks a year for ten years at that rate could cost around £150,000, about half to two-thirds the total cost of purchase in some mid-range cases. Longstanding renters who visit a location frequently sometimes decide that ownership—despite its costs—offers convenience and continuity: Jo and Peter Taylor, who had rented in Saint-Jean-de-Belleville for years, purchased a three-bedroom property in 2023 and estimated annual running costs of about £2,240 while valuing the convenience of having furnishings and gear in place.

Tax and exit planning can reduce the net cost but require professional advice. Capital gains on property sales for non-resident owners are levied as 19 percent income tax plus 7.5 percent social charges, though allowable deductions—stamp duty, estate agent fees, renovation costs and taper relief based on years of ownership—can significantly reduce the taxable gain. Tax adviser Geraud Nayral of French Connections HCB said that on a hypothetical €100,000 gain from a €300,000 sale over ten years, the tax bill could be reduced to about €5,681 after allowable offsets. Owners with French real estate holdings above €1.3 million may also face the wealth tax (IFI).

Insurance and local risks are further considerations. Insurance premiums for second homes are typically higher than for main residences, and recent climate events have pushed premiums up in some regions. Owners interviewed and property managers warn that storms, fires and changing local tax assessments can create unpredictable costs that are difficult to budget for in advance.

For prospective buyers, estate agents and owners recommend calculating total cost of ownership before committing. That calculation should include purchase-related fees, annual taxes and running costs, periodic major repairs, the cost and tax treatment of letting, and currency-exchange implications. Many buyers still prioritise lifestyle and family use over financial return, but data from notaries and real-world owner accounts show that the headline purchase price is only the start of what can become a complex, and sometimes costly, cross-border asset.