What to know before buying a holiday home in France

Purchasing a holiday home in France remains a popular move for many British buyers attracted by lower prices, lifestyle and proximity to the UK, but experts and owners warn that purchase fees, annual running costs and intermittent large repairs can quickly erode the appeal of a seemingly cheap property.

Around 86,000 holiday homes in France are owned by Britons, with many purchases clustered between €100,000 and €250,000, and an estimated 150,000 Britons now living permanently in France. Despite those figures, the average French property price fell 4.2% in 2024, according to Notaires de France, underscoring that buyers should expect modest capital appreciation over short periods and plan primarily for lifestyle rather than rapid profit.

Buyers and agents say motivations are predominantly emotional and practical rather than investment-focused. "The main reason is usually to have a physical base in an area that they love, rather than renting someone else’s home," said Tim Swannie of Home Hunts. Longstanding holiday ties, family connections and the convenience of driving or short flights from the UK are commonly cited reasons for buying rather than continuing to rent.

The initial financial outlay goes beyond the advertised price. Notaire fees and transfer taxes typically add about 8% to 9% for older properties, and buyers should budget about 10% of the purchase price overall for fees, surveys, currency-exchange costs and legal advice, said Judith Whitlow of Beaux Villages, Savills’ French associate. Those notaire fees include transfer taxes, land registry fees and administrative costs.

Annual ownership costs vary widely by region, property type and usage. Two principal recurring taxes are taxe foncière, a property ownership tax, and taxe d'habitation for second homes. Savills says the average taxe d'habitation is roughly €1,000 a year. Examples in listings show taxe foncière ranging from about €1,031 a year on a four-bedroom house in the Dordogne to €2,016 for a similar-priced property in the Aude.

Running and maintenance costs can be substantial and unpredictable. Owners report yearly bills covering insurance, utilities, internet, water, local taxes and general upkeep. One couple who bought a two-bedroom property in Carcassonne in 2023 calculated annual running costs of €5,195, which included higher-than-expected taxe foncière and taxe d'habitation plus maintenance and utilities. In the Occitanie region, Leggett Property Management estimates typical annual running costs for a three- to four-bedroom detached house with a pool and medium garden at €6,500 to €12,200, excluding second-home tax.

Recurring seasonal costs appear in many owners' accounts. Garden maintenance commonly costs €25 to €40 an hour; having two hours of gardening for 30–35 weeks a year can add €1,200 to €2,800 annually. Pool management costs another €1,100 to €3,000 a year if fully outsourced. Keyholding or regular property checks can cost €1,300 to €3,000 a year, and odd-job maintenance is typically €300 to €1,000 annually. Insurance premiums for second homes are generally higher than for main residences, often cited at €300 to €600 a year, and some regions have seen insurance rises of 8–12% as recent weather events increase risks.

Major capital expenses occur less frequently but can be costly. Roof works, pool renovations, heat-pump replacements and indoor heating upgrades typically arise every 15–20 years and can run into five-figure sums. Owners who plan to let their property must also factor in additional outlays for furniture, safety compliance and potential professional management.

Renting out a second home is a common strategy to offset costs. Management companies that handle short-term lets usually charge 15% to 30% of rental income plus cleaning and other fees. Owners must declare rental income and pay tax on profits, and many use accountants to navigate changing rules and rates. Examples from owners show rental income can cover a material portion of running costs: one owner in Normandy rented an annexe as a two-bedroom gite at about €115 a night and hoped the income would cover half his ongoing costs.

Comparisons with long-term renting vary by use. Travel agents say a three-bedroom villa with a pool in the Dordogne might cost €2,000–€3,000 a week. If a household rented such a villa for six weeks a year over a decade, the total cost might be about £150,000 — roughly 50%–60% of the price of purchasing a comparable property, suggesting that buying can be economical for frequent users but costly for occasional visitors once ownership expenses are included.

Financing is another consideration. Some buyers cite access to French mortgages and low borrowing rates as key enablers. A 20-year fixed French mortgage made a purchase straightforward for one buyer who planned to treat his house as a long-term project. Currency exchange and transfer fees also affect the total cost of ownership and ongoing payments.

When owners decide to sell, capital gains tax applies to non-resident sellers. French capital gains tax for non-residents typically comprises 19% income tax plus 7.5% social charges, though Britons may benefit from reduced social charge treatment compared with other non-EU nationals. Tax adviser Geraud Nayral of French Connections HCB noted that allowable deductions — including stamp duty, agent fees and renovation costs — and taper relief linked to ownership duration can significantly reduce the taxable gain. He provided an example in which a €100,000 gain on a €300,000 property over ten years could result in a tax bill of about €5,681 after deductions and reliefs. Owners with French property assets above €1.3 million may also face payable wealth tax (IFI).

Owners' experiences underscore the variety of outcomes. Some see a holiday home as a family base and a long-term project that justifies steady expenditure and occasional rental. Others find properties become "expensive ornaments" when family patterns change and usage drops, leading to decisions to sell. One couple said their Highland-to-Pyrenees house, purchased as a retirement project, now costs £4,000 to £5,000 a year to maintain and is for sale after family relocations reduced its use.

Financial and practical calculations matter: how often the property will be used, the likely annual and intermittent costs, the potential to offset bills through letting, the tax implications on sale, and the availability of local services to manage the property when owners are absent. Agents and owners recommend factoring in viewing-trip costs, legal and survey fees at purchase, and realistic estimates of insurance and maintenance rises as climate-related events and local tax reassessments can change costs quickly.

For buyers focused on lifestyle, many say the benefits outweigh the costs. Owners who use their properties for extended periods each year report convenience, social ties and the ability to customise and store belongings as major advantages. For those for whom usage will be limited, advisers and owners warn that the combination of up-front fees, annual taxes, ongoing maintenance and occasional big-ticket repairs can transform a headline bargain into a long-term financial commitment.

Prospective purchasers are advised to obtain targeted legal and tax advice, budget for both predictable and unexpected outgoings, consider professional property management if letting, and compare the total cost of ownership against the cost and convenience of continued short-term rentals. Where the numbers do not add up, continuing to rent remains a viable option for those who want to avoid the administrative and financial complexity of second-home ownership in France.