CURRENCY
THE DIFFERENT STAGES OF A FRENCH PROPERTY PURCHASE Looking for a property
Opening a foreign exchange account early will give you access to experts who can help you get familiar with both the currency and the process. Let us help you get started!
• Get familiar with the euro: Look at what’s changed over the last 12 months and get comfortable with the idea of spending in the currency.
• Start monitoring the exchange rate: Keep an eye on fl uctuations and get an idea of what you think is a good and bad rate.
• Defi ne your budget and account for fl uctuations in rates: How does this all impact your budget? What would the diff erence be if you exchanged when the rate is in your favour versus when it isn’t? Come up with a range that your budget can tolerate.
Once you fi nd a property
This is the fi rst point at which you will need to know the exact exchange rate of your property price in your home currency.
• Top tip: Make a note of the exchange rate when you make an off er. This will give you a benchmark to help you make decisions later on.
Your off er gets accepted, and it’s time to get serious about money
Next, you’ll sign a purchase contract, or ‘compromis de vente’ as it’s known. This is a legally binding commitment to buy the property. There’s a 10-day cooling-off period, but aſt er that, you’re all in!
Deposit
The deposit (dépôt de garantie) is your fi rst payment and requires a 5-10% payment once the purchase contract has been signed and the cooling-off period has expired.
Completing your purchase
Normally, completion takes two to three months. On the completion date, the signature of the title deeds takes place in front of a notaire in France. To make sure there are no delays,
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Be aware of currency risk. None of the information contained in this article constitutes, nor should be construed as financial advice. TTT Moneycorp Limited (company number 738837) is registered in England. Its registered office is at Floor 5, Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ. Moneycorp is a trading name of TTT Moneycorp Limited which is authorised and regulated by the Financial Conduct Authority for the provision of payment services (firm reference number 308919). Date of approval 24/10/2024
UK, several taxes might apply to you (see Moneycorp’s online ‘Quick Guide: Taxes & Fees’ section for more information).
• Top tip: With two to three months until your fi nal payment is due, this time can be unsettling for buyers because exchange rates can fl uctuate signifi cantly. If you haven’t fi xed the rate at the time of paying your deposit, make sure you monitor the exchange rate and take the opportunity to plan and get some guidance from a foreign exchange expert. This will help you maximise any opportunities and manage the risk – so there are no unwelcome shocks!
Settling in
Aſt er buying your property you might still be exposed to currency exchange payments when paying for a mortgage, for example, or ongoing maintenance fees or taxes. A currency specialist company will be able to off er you fl exible and automated solutions to manage such payments.
you’ll need to wire the fi nal funds and any outstanding fees directly to your notaire’s account before the day of completion. At this point, you’ll also pay any outstanding taxes. Like in the
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