Furniture and notary fees: deducting it from the price

Why furniture changes the bill

The BOFiP puts it bluntly: where a sale covers both furniture and real property, the parties have an interest in increasing the share of the price allocated to the furniture, which is generally taxed less heavily or does not give rise to proportional duty, and in reducing the share of the property by the same amount. Article 735 was written to “thwart this fraud” (our translation) (BOI-ENR-DMTOI-10-120, § 1 and 10).

Transfer duties on a resale home are made up of a departmental share (5% at most from 1 April 2025 to 31 March 2028; for a first purchase of a main residence, the rate voted before the increase, generally 4.50% and lower in a few départements, see hausse des droits de mutation (transfer duty increase)), a municipal share of 1.20% and assessment charges, giving an overall rate of 6.32% at most (impots.gouv.fr). The breakdown is on the frais de notaire (notary fees) page.

Example: a house sold for €250,000, including €8,000 of furniture correctly described and valued in the deed. Duties at the overall rate of 6.32% are charged on €242,000 instead of €250,000, a saving of 8,000 × 6.32% = €505.60.

The two conditions of article 735

For the furniture to escape the property rate, two conditions must be met at the same time (BOI-ENR-DMTOI-10-120, § 120).

1. A separate price stipulated in the deed of sale. It must be a genuine commitment by the parties; a mere estimate with no binding force is not enough. The price must appear in the deed itself, in an annexed document or in a marginal reference. Case law refuses to take into account a valuation made in an earlier or later deed, or even one executed on the same day, unless the deed of sale expressly refers to a detailed deed or statement drawn up before the sale (§ 140 and 170). An allocation made “for duty collection purposes only” leads to the property rate being applied to the whole (§ 150).

2. Description and valuation item by item. An overall price for “the furniture” is not enough: if some items are not valued separately, the property rate applies to the whole price (§ 180). There is some leeway: items of the same kind (crockery, kitchen utensils, materials) may be valued as a group (§ 190).

The valuation must appear in the deed or in an annexed statement. The deed may also refer to an authenticated inventory or to a deed with a certain date prior to the sale that is not too old. On the other hand, a statement without a certain date, or one drawn up after the sale, is worthless, and the omission cannot be remedied by a supplementary deed after registration (§ 200 and 210).

The rule applies only if the furniture and the property are sold by the same sellers to the same buyer (§ 100). It does not apply where the property is subject to VAT on real estate (§ 90).

Which items can be allocated separately

Only movable property can be taken out of the price: the sale must cover both real property “by nature or by intended use” and tangible or intangible movable property (BOI-ENR-DMTOI-10-120, § 60). Anything that is an immeuble par destination (fixture treated as part of the property) therefore follows the property. In practice, items built into the structure are left off the list, and items that can be taken away are included: furniture, free-standing appliances, removable light fittings, linen, crockery. These examples reflect common practice, not a list set by law.

In practice, the statement is often prepared at the stage of the compromis ou la promesse (preliminary sale contract or option agreement), so that the allocation is carried over as is into the acte authentique (final deed of sale); what matters to the tax authorities is that it appears in the deed of sale or in an annexed statement (§ 200).

Justifying the value

The BOFiP sets no percentage cap. It merely points out that article 735 makes it possible to check whether the price set for the property matches its market value (BOI-ENR-DMTOI-10-120, § 10): an inflated furniture share artificially lowers that price.

Neither article 735 nor the BOFiP requires any particular supporting evidence. In practice, a credible list gives, for each item, its description, its condition and a consistent second-hand price, and careful sellers keep something to back it up in the event of an audit: purchase invoices for the most expensive items, dated photos, comparable second-hand listings.

A piece of furniture bought new ten years ago is no longer worth its purchase price: a valuation at the new price draws attention to an excessive allocation.

The risk of reassessment

If the tax authorities consider that the furniture share is overvalued, they may adjust the basis on which duties are charged. For registration duties, their right of reassessment runs in principle until the end of the third year following the year in which the deed was registered, where the deed sufficiently disclosed that the duties were payable (LPF (livre des procédures fiscales, Tax Procedures Code), art. L180; BOI-CF-PGR-10-40, § 40).

Back duties come with late-payment interest of 0.20% per month (CGI, art. 1727; BOFiP). If the authorities establish a manquement délibéré (deliberate failure), a 40% surcharge is added; it rises to 80% in the event of fraudulent manoeuvres (BOI-CF-INF-10-20-20, § 20). Concealing part of the price is expressly targeted by these surcharges. On an allocation of a few thousand euros, the gain is limited; the risk is not.

Which professional to consult

The notaire (notary) drafts the deed: they insert the separate price for the furniture and the valuation statement, and may refuse an allocation they consider excessive. The agent immobilier (estate agent) who negotiated the sale can help draw up the list from the offer and preliminary contract stage onwards, with consistent second-hand values.