FrançaisIntroduction
Starting April 1, 2025, a major reform in real estate law will take effect: French departments will be authorized to raise transfer duties on valuable consideration (DMTO) up to 5%. This measure, introduced by the 2025 Finance Law, raises many questions among buyers, investors, and real estate professionals. A real estate lawyer can assist you in analyzing these changes and securing your property transactions.
I. What the Reform Provides: Higher Transfer Duties
The DMTO, commonly known as “notary fees,” represent a significant portion of the cost of a real estate purchase. Currently capped at 4.5%, these duties may now be raised to 5%, at the discretion of local departmental councils.
A local decision: Each department can choose whether or not to apply this increase. For instance, Paris has already decided to raise the DMTO, which will mechanically increase the overall cost of real estate purchases in the capital. In contrast, Nice has so far refused to vote in favor of this increase.
A direct impact on real estate purchasing power: For a property valued at €400,000, a 0.5 percentage point increase represents an additional €2,000 to be paid starting April 1st.
A real estate lawyer can help you anticipate these increases by reviewing the timeline of local decisions and securing clauses in your preliminary contracts (compromis de vente) related to acquisition costs.
II. A New Obstacle for the Real Estate Market? The Role of the Real Estate Lawyer
This increase comes at a time when the real estate market is already under strain: rising interest rates, slower transactions, and cautious investors. Professionals in the sector fear this could further hinder access to home ownership.
Why consult a real estate lawyer?
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Cost anticipation: A lawyer can integrate these changes into your investment strategy.
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Legal security: In a volatile market, purchase agreements must be precisely adapted.
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Tailored advice: Not all departments will adopt the same policy. A lawyer analyzes local impacts and adjusts your file accordingly.
The increase in DMTO is not just a budgetary detail — it raises issues of wealth strategy, contractual negotiation, and legal optimization. A real estate lawyer is therefore a key partner in helping you anticipate the effects of this reform.
Conclusion
The DMTO reform set to take effect on April 1, 2025, marks a significant development in French real estate law. In this changing landscape, being supported by a real estate lawyer ensures that your transactions are secure and the financial consequences of the reform are minimized.
Are you planning a real estate project in 2025? Contact Me Ribeiro de Carvalho, real estate lawyer, today for personalized legal support.
