Buying Before 2025: Notary Fees Explained.
Prospective homebuyers would be wise to act quickly. Notary fees, which are already substantial, are set to rise starting in 2025. A 0.5-point increase in the transfer tax (DMTO), as provided for in the 2025 budget bill, will lead to higher notary fees in many departments.
An Increase Expected in the Summer of 2025
Prime Minister Michel Barnier announced on November 15 that departments will have the option to increase transfer taxes on real estate transactions starting in 2025. If the measure is adopted, notary fees—which already average 7.5%—could rise to 8% by summer 2025, resulting in additional costs for buyers.
All affected departments?
This increase, included in the draft budget bill, will not take effect automatically. Each department will decide whether or not to implement this increase, but according to Sandrine Allonier, communications manager at the mortgage broker Vousfinancer, it is likely that most departments will choose to implement it. This decision is, in fact, considered more political and less unpopular than an increase in property tax, which could place an even heavier burden on local governments’ finances.
A Significant Additional Cost for Buyers
What impact will this increase have on buyers? Let’s take the example of a property purchased for 300,000 euros. With a 0.5-point increase in notary fees, the buyer will have to pay an additional 1,500 euros, bringing the notary fees to 24,000 euros, up from 22,500 euros today. This difference, while significant, could encourage buyers to move up their real estate plans before the measure takes effect.
A Deadline for Buyers
If the law is enacted in early January, the increase in the DMTO will take effect on June 1, 2025. This deadline could prompt many buyers to finalize their transactions before summer. A similar phenomenon was observed in 2014 following a DMTO increase, when INSEE reported a 26% rise in the number of transactions in the months leading up to the increase.
In short, anyone planning to buy real estate in 2025 would be wise to do so before summer to avoid paying a higher price.
