As of April 9, 2025, the landscape of property transactions in France is witnessing a significant shift. Following the enactment of the Budget 2025, many departments are poised to increase property transfer taxes, commonly known as "frais de notaire," by up to 5%. This change is a direct response to a staggering 22.6% drop in the old real estate market over the past year, prompting over twenty departments, including Paris, Seine-Saint-Denis, and Loire-Atlantique, to vote in favor of this increase.
For prospective buyers, this translates into a hefty average increase of 500 euros for every 100,000 euros spent on property. However, there is a silver lining for first-time buyers, as they will remain exempt from this rise. The new fees will take effect starting April 1, 2025, depending on the voting date in each respective department.
In addition to changes in property taxes, French banks are quietly implementing their own fee structures that could affect consumers significantly. Nearly half of French banks impose a "minimum flat rate of debit interest," which is a fixed fee charged even for small authorized overdrafts. For instance, customers at Crédit Mutuel Centre could find themselves paying up to 13.50 euros per quarter, even if their overdraft lasts only a few days. This practice, while legal, has been criticized for its lack of transparency, particularly as it disproportionately impacts vulnerable households. The consumer advocacy group UFC-Que Choisir has called for stricter regulations and greater transparency regarding these fees.
Meanwhile, for those who have purchased trimesters towards retirement, there is an urgent deadline approaching. The 2023 pension reform raised the legal retirement age to 64, rendering some previously purchased trimesters effectively useless for those who had planned to retire at 62. However, individuals born after September 1, 1961, who made their purchases before April 15, 2023, still have an opportunity to request a refund.
Valérie Batigne, founder and director of the retirement consulting firm Sapiendo, emphasized the importance of this refund option, stating, "It doesn’t make sense to reach the legal age with too many trimesters, as it doesn’t increase the pension amount." Eligible purchases for refunds include those related to higher education years, late affiliation to Retirement Insurance, and work periods abroad, among others.
To claim a refund, individuals must send their requests by post to their regional pension fund, including a copy of their purchase contract, proof of payment, and documentation of their current situation. The deadline for submitting these requests is April 15, 2025, after which no refunds will be possible, even for those who meet the eligibility criteria.
Additionally, the 2023 reforms introduced new rules for those yet to purchase trimesters. Individuals can now buy back their years of study at a preferential rate until the age of 40, a significant increase from the previous limit of 10 years post-education. Similarly, the window for redeeming internship periods has expanded from 2 years to 30 years.
As the April 15 deadline looms, individuals are encouraged to check their eligibility for refunds to avoid missing out on a potentially significant financial relief. With the current economic climate and rising costs, this opportunity could make a substantial difference in personal budgets.
In summary, the recent changes in property transfer taxes, banking fees, and pension refund opportunities reflect broader economic pressures and reforms in France. As these developments unfold, it remains crucial for consumers to stay informed and proactive about their financial decisions.
