New build or resale in France: costs, VAT, PTZ

What “new” means to the tax authorities

The new-build regime applies to buildings completed no more than five years ago, bought from a person liable for VAT, which in practice means a developer or a professional (BOFiP, BOI-ENR-DMTOI-10-40, § 110). Article 1594 F quinquies, A of the Code général des impôts (General Tax Code) makes these transfers, “where they are subject to value added tax”, liable to the land registration tax at the rate of 0.70%.

A four-year-old home resold by a private individual is therefore subject to the duties for older homes: the age of the building is not enough, the status of the seller counts.

Purchase costs: the big gap

Source: impots.gouv.fr, page updated on 17 July 2026. For a first purchase as a main residence, impots.gouv.fr specifies that “the maximum rate remains set at 4.5%”. In practice, a first-time buyer keeps the rate voted by the département (art. 1594 D): generally 4.50%, 3.80% in the Indre and the Hautes-Pyrénées (DGFiP schedule of 1 June 2026; see hausse des droits de mutation (transfer duty increase)).

Example at €300,000 (impots.gouv.fr scale):

• new build: €2,100 of tax + €44.94 of assessment fee + €300 of contribution = €2,444.94;
• older home, at the overall maximum rate: €18,960 + €300 of contribution = €19,260.

The notaire’s (notary’s) remuneration follows the same regulated scale in both cases (impots.gouv.fr). Do the calculation for your property with our calculateur de frais de notaire dans le neuf (new-build notary fees calculator), or see our frais de notaire (notary fees) page for older homes.

VAT, included in the price of a new home

For a new home, the sale is subject to VAT: “The VAT rate is 20% in most cases” (impots.gouv.fr). A reduced rate of 5.5% applies to the purchase of a home intended to become the occupier’s main residence in ANRU zones (urban renewal areas) and quartiers prioritaires de la politique de la ville (priority urban neighbourhoods), subject to conditions: income not exceeding the ceilings for the prêt locatif social (social rental loan) increased by 11%, and a capped price.

This VAT is included in the price advertised by the developer. The useful comparison is therefore of the total price, costs included, not of notary fees alone. Only supplies made by a person liable for VAT acting as such fall within the scope of VAT (BOFiP, BOI-ENR-DMTOI-10-40, § 20): an older home sold by a private individual is not subject to it.

Guarantees: the advantage of new build

During construction (VEFA, off-plan sale). The seller must provide a completion guarantee: either a garantie d’achèvement (completion guarantee) or a garantie de remboursement (refund guarantee) (service-public.gouv.fr, page F39743). See our guide garantie financière d’achèvement (financial completion guarantee).

After acceptance of the works (service-public.gouv.fr, page F2958):

• parfait achèvement (completion guarantee), 1 year: all defects reported at acceptance or appearing within the year;
• bon fonctionnement (equipment guarantee), 2 years: removable equipment;
• décennale (ten-year guarantee), 10 years: structural soundness of the building and non-removable elements.

These guarantees run from acceptance of the works. They are not specific to new homes bought off-plan, but it is the buyer of a new home who benefits from them for their full duration.

Property tax: 2 years’ exemption for new homes

New constructions benefit from a temporary 2-year exemption from taxe foncière, from 1 January following completion (see our taxe foncière guide; for the 2-year duration: service-public.gouv.fr, page F2799, verified on 16 April 2026). Condition: file the property declaration no later than 90 days after completion of the works, online in your Finances publiques (tax) account (section “Biens immobiliers”) or on a paper form. Impots.gouv.fr points out that all new constructions must be declared by the owner within this 90-day period. The commune or the inter-municipal body can reduce this exemption (see our taxe foncière guide).

PTZ: new homes everywhere, older homes under conditions

According to service-public.gouv.fr (page F10871, verified on 15 September 2026):

• for new homes, the PTZ is available throughout the country for loan offers issued since April 2025. In apartment buildings, it finances up to 50% of the transaction in income band 1, 40% in bands 2 and 3, and 20% in band 4;
• for older homes, it only finances the purchase of a home with improvement or energy-saving works amounting to at least 25% of the total cost of the transaction, in zones B2 or C, and the works must be completed within 3 years.

Estimate your entitlement with our calculateur de PTZ (PTZ calculator).

Which professional to consult

The agent immobilier (estate agent) helps you compare prices of older and new homes in the same neighbourhood. The notaire (notary) calculates the exact duties according to the status of the seller and the age of the property. The courtier en crédit (mortgage broker) checks your eligibility for the PTZ and factors VAT and costs into the financing plan. For older homes, the diagnostiqueur (property surveyor) carries out the surveys that inform the works budget.