Notary fees for property dealers:
optimising the costs

The commitment to resell (French Tax Code art. 1115) grants a reduced land registration tax of 0.715% in exchange for a commitment to resell within 5 years. The commitment to build (French Tax Code art. 1594-0 G A) is more powerful: it grants a full exemption from proportional transfer duties in favour of a mere fixed duty of EUR 125, in exchange for an obligation to build (or heavily renovate) within 4 years. The commitment to build suits development projects; the commitment to resell suits pure buy-and-resell arbitrage without works.

The additional land registration tax becomes payable (the difference between the standard rate, 6.32% in 2026 in the vast majority of departments until 31 March 2028 and 5.81% in the eleven departments that remained at 4.50%, and the reduced rate of 0.715%), together with late-payment interest of 0.20% per month (French Tax Code art. 1727). No surcharge is due merely because the commitment lapses (French Tax Code art. 1840 G ter); the 40% surcharge under article 1729 would apply only in the event of a deliberate inaccuracy in the deed. On a EUR 500,000 transaction, the reassessment on the transfer-duty portion is in the region of EUR 28,000 (EUR 25,500 in the departments that remained at 5.81%; EUR 31,000 for offices in Île-de-France, regional tax included), plus late-payment interest.

Yes, by administrative concession. If you did not make the commitment in the deed of acquisition but you meet the conditions, the tax authorities accept that it be made in a supplementary deed filed with the registration office; the duties paid are then refunded upon a claim, filed no later than 31 December of the second year following the year in which the duties were paid (BOI-ENR-DMTOI-10-40, § 270; Tax Procedure Code, art. R* 196-1). This route is useful where the opportunity to build or renovate arises after the purchase.

The additional 0.6% tax on sales of offices, commercial premises and storage premises in Île-de-France does not apply where the acquisition is made with a commitment to resell or to build (the reduced rate or the fixed duty replaces all the proportional duties). For Paris office transactions carried out as a property dealer, making a commitment is therefore particularly advantageous.

Yes, in two cases: the restoration of an existing building so that it qualifies as new for tax purposes (a renovation that changes the nature of the property; see French Tax Code art. 257, I, 2, 2°) and the addition of storeys to an existing building. These works must be completed within the 4-year period following the acquisition for the commitment to be regarded as honoured.

Yes. For a property dealer, the building is inventory: duties, emoluments, fees and disbursements form part of its cost price and are deducted from the margin taxable as industrial and commercial profits upon resale. The VAT charged by the notary on the emoluments and fees is recoverable only if the resale is itself subject to VAT.

There is no numerical limit, provided each transaction meets its own conditions (5-year deadline, VAT taxable-person status, mention in the deed). In practice, a property dealer can therefore chain buy-and-resell operations while systematically benefiting from the reduced rate, subject to keeping rigorous accounts and being able to document each resale vis-à-vis the tax authorities. In the case of successive acquisitions between taxable persons, the five-year period runs from the first acquisition made under a commitment (French Tax Code art. 1115).