Palwing Posted June 25, 2005 Share Posted June 25, 2005 Hi,We are buying a house + barn etc for cash in the Indre region for 150,000 euros (all inclusive of notaires and agency fees). We have already transferred the deposit of 10,000 euros to the Immobilier and will have to transfer the other 140,000 euros (£90k ish) on completion. Someone has just mentioned to me that there may be a tax to pay on moving that amount of cash into France in one go. We haven't heard or read anything about that but it's got us worried. The money will be paid straight to the Notaire come the big day.Does anyone know of a tax payable for paying a Notaire for a property in cash or have experience of this?Please put our minds at rest.Thanx in advance.Pal ~(;-) Link to comment Share on other sites More sharing options...
Nick Trollope Posted June 25, 2005 Share Posted June 25, 2005 Unless you are proposing to turn up at the Notaire's office with wads of Euro's in a suitcase, there are no further taxes to pay (over and above those involved in buying house).After all, this is what most of us who bought in France, do or have done.There are "wealth" taxes in France, but AFAIAA, these do not apply to most property purchases.I am suprised that you paid the deposit to the Agent - it would normally go to the Notaire. Has the agent paid it over to the Notaire? Link to comment Share on other sites More sharing options...
Palwing Posted June 25, 2005 Author Share Posted June 25, 2005 Hi Nick..Thanx for the prompt response. I was still browsing the Forum when you replied. The person who mentioned the tax to us said that most people buy with mortgages so the tax issue doesn't arise but cash transfers over a certain amount may attract some taxation. That got us thinking and kinda worried as we had't budgeted for anything like that.The Immobilier is registered and insured to hold deposits of 10%, hence the 15000 euro payment recently. This will be passed onto the Notaire on completion and not before as he hasn't even recieved any paperwork yet. We are currently waiting for the Compromis de Vente to do the rounds and arrive on our doorstep before the 7 day cooling off period begins. If we pull out the deposit is returned. Thanx again Nick...much appreciated.....anyone else got any thoughts? Link to comment Share on other sites More sharing options...
Miki Posted June 25, 2005 Share Posted June 25, 2005 Palwing,Are you saying you are going to turn up with actual cash ? Like as in readies ?Most, if not all items or services sold here, are subject to a maximum amount being able to be paid in cash. Now I can't be sure of this but wouldn't the notaire be obliged to report such a large sum of cash, after all, this amount of dosh has to be paid in to a bank somewhere along the line and the bank will possibly enquire where it came from. With the laws on laundering tightened up considerably here in France in the last few years, (look at Offshore banking for instance, starting on July 1st most offshore banking changes somewhat)I would be concerned if it was "cash" you were paying with and it not being able to be accounted for and had not been taxed along the line.I might be wrong and you will be OK or indeed, it might not be "cash" exactly you meant but paying by cheque and no mortgage in which case, most people have, more or less anyway, all transferred smallish to large funds to their notaire Link to comment Share on other sites More sharing options...
Palwing Posted June 25, 2005 Author Share Posted June 25, 2005 Hi MikiYep, you are quite right, sorry for any misunderstanding..I mean cash as in "no mortgage" so will be transferring 140,000 euros in one lump to the Notaire on the big day. My friend seems to think that there is some sort of tax involved, however, the more I investigate and hear from you guys, the more I tend to think he doesn't know what he is talking about. Thank goodness for this Forum huh?So far I have transferred 15000 euros via HIFX at a rate of 1.504 which I was pleased with. However, the big day is a few months away so will be watching the exchange rate like a hawk! Did get a quote of buying forward at 147.8 (ish). We are not going to commit to any currency decisions until the 7 day cooling off period has expired. Then we might buy half the amount in euros and gamble on the rest with the exchange rate. Have to work out if leaving the money in a 5% gross bank account is better than gambling on a rate in maybe 6 months time. (due to property being subject to succession)Thanx again Miki..appreciated also. Link to comment Share on other sites More sharing options...
Lizfjr Posted June 25, 2005 Share Posted June 25, 2005 No. I bought for 'cash' and no extra taxes. And I paid deposit to agent who just gave me a receipt. I Paid at completion by bank transfer to Notaire. Link to comment Share on other sites More sharing options...
Palwing Posted June 25, 2005 Author Share Posted June 25, 2005 Thanx Liz et all...looks like we can sleep soundly again for now. Panic over...wait until I see my mate! <grin> Link to comment Share on other sites More sharing options...
zeb Posted June 25, 2005 Share Posted June 25, 2005 LOL we actually did bring cash to pay for our place!! Mind you it was very cheap, but we had such a scare as it was just after 9/11 so my bag with the lolly wasn't allowed in the cabin with me and trundled off on the trolley thing to the hold. Then I had to queue up at the luggage belt at Poitiers with my heart in my mouth.....and the Notaire was a bit surprised. Thought I was being clever and would save time and bankcharges.Never again. Link to comment Share on other sites More sharing options...
Val_2 Posted June 26, 2005 Share Posted June 26, 2005 We paid in money (not actually notes in bundles) but a cheque and not mortgage or loan too and there were no extra charges or taxes to pay. Your friend has heard yet another myth about buying abroad. Link to comment Share on other sites More sharing options...
bizzer Posted June 26, 2005 Share Posted June 26, 2005 Hi GuysI sold my house in England and transfered the balance to my French Bank account it was a fairly easy transaction --- just where it disappears to for about 5-7 days is a mystery, electronic age hmmm!!!--- I did however have to supply my bank with a letter from my English solicitors to say where the money had come from e.g sale of house and I also had to send a copy of the compromis de vente to say where the money was going and what it was for.... and I have such an innocent face!!there was no extra taxation apart from the usual property taxes and Notaires/ Agency fees...cheersBarry Link to comment Share on other sites More sharing options...
Iceni Posted June 27, 2005 Share Posted June 27, 2005 When we first transferred our renovation funds to our French bank from our UK bank we had to prove where the money came from -so we produced the details from the sale of our UK property. I would not bet that someone will not want to know where the money came from at some time, money laundering rules seem to have got totally out of hand these days. Link to comment Share on other sites More sharing options...
Debra Posted July 21, 2005 Share Posted July 21, 2005 Hi Palwing,Hope it all went alright for you. I was a bit concerned to read about your deposit. We are on our second attempt to buy a property and on both we have only had to pay our deposit AFTER the 7 day cooling off period. ie 7 days after the vendor has signed the compromis de vente.Debra Link to comment Share on other sites More sharing options...
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