The news came like a hammer. On November 15 in Angers, Michel Barnier unveiled a measure that is already raising eyebrows in the real estate sector: the increase in the ceiling on transfer duties for valuable consideration (DMTO). Behind this technical term hides a concrete reality for buyers, notary fees will increase by 0.5 points for three years.
An increase that comes at a bad time
The real estate market is already going through a zone of turbulence. Interest rates have soared, prices remain high, and now a new burden is added to buyers’ budgets. For Loïc Cantin, president of the National Real Estate Federation (Fnaim), the timing could not be worse. “This increase risks discouraging first-time home buyers and compromising the timid recovery observed following the drop in interest rates”he warns.
The numbers speak for themselves. For an apartment costing 200,000 euros, the increase represents 1,000 euros in additional costs. This sum rises to 1,250 euros for a property costing 250,000 euros. A significant additional cost, particularly for first-time buyers who already have to juggle a tight budget.
The departments in charge
The measurement is not automatic. Each department retains the freedom to apply it or not. The standard departmental rate will increase from 4.5% to a maximum of 5%, in addition to the municipal tax of 1.20%. The departments will have to vote on the new rate, applicable to transactions carried out between June 1, 2025 and May 31, 2026.
But let’s make no mistake. According to industry professionals, most departments should jump at the opportunity. Their finances have been in the red since the fall in real estate transactions, and these transfer taxes represent around 20% of their revenue. The government estimates that this increase could bring them an additional 1 billion euros.
A vicious circle that worries
The National Union of Developers (Unam) points out a worrying paradox. The drop in revenue from notary fees is a direct result of the collapse of the real estate market. Increasing these rights risks further slowing down transactions, thus creating a vicious circle.
Professionals also fear that this “temporary” three-year measure will become permanent. History has shown that temporary tax increases often tend to become a lasting part of the French tax landscape.
Michel Barnier nevertheless defends his decision. “The indicated effort is acceptable”he affirms, while recognizing the need to remain vigilant on the conditions for the recovery of the real estate sector. An optimism that is not shared by market players, already scalded by other measures such as the surge in property taxes.
- Notary fees will increase by 0.5 points from June 2025
- This increase will represent €1,000 more for a purchase of €200,000
- The measure is presented as temporary over three years, but professionals fear its sustainability
