Ownership costs for a rental apartment

Although closing costs are quite high in France, (the Notaire will take 7-8%, most of which he or she is collecting for the government) but the property taxes and running costs of an apartment in Paris are not too bad.

For a one bedroom apartment of 50m² in central Paris they would be roughly equivalent to the following:

• Monthly building charges are paid quarterly
Dues range from 100 to 150 euros a month, depending on the size of the apartment, the number of apartments in the building and the services that the building has to offer: a Gardienne, an elevator etc. A good approximation is about 2 euros/square meter of the apartment.

• Once a year Tax Fonciere and Tax d'Habitation. For most US purchasers the 7-8% tax on a purchase seems high, annual property taxes in France are substantially lower than in the United States. Where US property is taxed by the state anywhere from 0.5% to 3% annually, the Taxe Fonciére (land tax) is about 0.1 to 0.2% per year. Tax d'Habitation varies from one place to another and according to the size of the property. (If you rent your property to someone else and they are living there on the first day of January for the year, they are liable to pay this tax.)

• Insurance which includes contents and damage by tenants (but not tenants belongings) about 300 euros per year.

• Internet/Cable/telephone package should be part of the rental package c.30-50 euros per month

• Electricity – is paid by tenant but you could consider wrapping it into the monthly rent (up to 50euros a month for example) to offer a nice "package deal" for your renters and gain a competitive advantage over other apartments on offer.