Taxation: the departments ask for an increase in “notary fees”

Will the cost of real estate transactions increase further? Not because of yet another price increase… but because of a potential increase in taxation. During each real estate transaction, buyers must pay what are commonly called “notary fees”. In reality, these are essentially “transfer duties for valuable consideration” (DMTO), taxes collected by notaries but which are then paid to their beneficiaries, local authorities (departments and municipalities) and the State. To this are added the assessment and recovery costs which represent a percentage of departmental law, and the property security contribution, at the rate of 0.1%.

To finance the creation of a solidarity fund of 1.5 billion euros in favor of the departments in difficulty, the Assembly of the departments of France calls, according to The echoes, a 0.2 point increase in these transfer taxes. An increase equivalent to that proposed by Édouard Philippe a year ago before Matignon backtracked. The maneuver would raise some 500 million euros. But above all to upset a good number of homeowners, while transfer duties had already increased by 0.7 points in 2014.

400 euros more for a purchase of 200,000 euros

The overall rate of transfer taxes now stands at 5.81%. On this part, the rate applicable to the departments weighs 4.50%. Only 5 departments have kept an unchanged rate at 3.80%: Indre, Isère, Morbihan, Martinique and Mayotte. According to INSEE, DMTOs represent an important source of income for French departments, around 10 billion euros per year. On the real estate market, the effect of a tax increase is significant: Insee had counted an average monthly decrease in transactions of around 6% during the last increase in 2014 over the first three months, with an estimate minimum gross of 15,000 lost transactions.

For households, the additional amount they would have to pay (around 400 euros for a property worth 200,000 euros) should not be such as to fundamentally call into question a purchase decision. But an announcement like this could weigh on their morale: “Notary fees are already weighing on household budgets, in particular first-time buyers, already penalized by the drop in aid such as PTZ and APL. In addition, even in times of low interest rates, most banks still ask borrowers to match these fees. This possible increase could have an impact on the dynamism of the real estate market, which is currently in good shape ”, analysis Sandrine Allonier, spokesperson for the broker Vousfinancer.