We’re seeing an increasing number of cash-rich buyers opting to finance their property purchase in France with a mortgage – and for good reason. If you’re considering a cash purchase, it’s essential to consider the benefits of a mortgage. Here’s why:

  • In France you can only raise finance when you purchase a property and you cannot raise finance against the property at a later date years down the line - even if it is debt free, or if you have added value.
  • A French mortgage will shield you from exchange rate fluctuations – using a mortgage reduces the amount of foreign currency exchanged into Euro’s, significantly limiting exposure to exchange rate volatility.
  • Preserving capital investment – French mortgage rates remain comparatively low when compared to potential investment returns.
    • 15 year fixed mortgage rate 3.95%
    • Average return on a Stocks and Shares ISA (Feb 2024 – Feb 2025) 11.86%* (*Source: Moneyfacts.co.uk)
  • Buyers can offset their mortgage interest against the rental income to reduce the taxable profit which reduces their income tax burden
  • Wealth Tax – applicable to those with a property portfolio in France with a net value over €1.3m. Buyers can offset the Euro debt against the value of the property to reduce the wealth tax burden.

Cash-rich buyers needn’t have a suspensive clause (although we would always recommend it) – they can take a mortgage without it being a condition of the sale. A mortgage needn’t delay completion. In fact, 50% of our clients have completed ahead of the date in their Compromis so far this year.

30 May 2025

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