Paying for the property

[PossiblyTim]

We are on the way to buying a house in France from an English couple who want to come home(!). They have asked us if we would be willing to pay the purchase price in Sterling rather than Euros - reason being that it saves the cost of two lots of exchange - seems fair enough to us BUT will the notaire accept it?

There is no intention of trying to mis report the price to save a few euros on the fees and taxes!

Thoughts anyone?

Thanks

Tim

 

[Val_2]

I very much doubt it as the notaire has other mathematics to do for the fisc and it will completely throw him. It may also cause you problems with the french impôts too when they receive your papers as you very often get a rebate for paying too much on purchase here. Its the notaire who pays the sellers after all the deductions especially the CGT if applicable and his cheque will be in euros anyway.

[Nick Trollope]

This has been covered recently (perhaps not on this Forum).

Basically, no. The money must go through the Notaire & I doubt if you will find a Notaire that will handle Sterling. Taxes must be paid in Euros.

It may also be viewed as "under the table", in which case the Notaire would refuse to complete the sale & you would lose out (as would the Vendor).

 

[Francais]

Surely this cannot be right?

If there is no intention to do the deal under the table and this can be demonstarted to the notaire, then so long as all the fees and taxes that need to be paid in euros are paid in euros and you can show the notaire that the correct balance is being handed over, what possible problem can there be?

 

[Nick Trollope]

[quote]Surely this cannot be right? If there is no intention to do the deal under the table and this can be demonstarted to the notaire, then so long as all the fees and taxes that need to be paid in euros ...[/quote]

Because it is out of the ordinary. Unlike the UK, there are regulations as to how most things are transacted, rather than regulations to produce a result (if that makes sense!).

IFAIAA, ALL money for a property transaction must go through the Notaire's hands (or rather bank account). So, as the Notaire won't have a Sterling account, one would still be involved in the 2 currency transactions...

This is France, where the currency is the Euro. Until the UK adopts the Euro, UK Solictors won't use a foreign currency, so why expect a French tax collector to do so?

 

[Anton Redman]

I would try writing down in good French what you want to do and why ( you will loose a minimum of 2 % on the two exchange transactions ) not that you want to save French taxes. The notaire may well need sufficient funds to cover their fees and known taxes as well as the potential C.G.T. on your sale. I would then try visiting a couple of notaires and asking.

[Motorhead]

There was a thread here not long ago about a notaire who was willing to handle a transaction in sterling. I expect that he was after a skim off the currency rates.

So even if you could find a notaire who would do it I doubt if it would be any cheaper.