Brexit – practical aspects of moving to Paris
Brexit is likely to lead to a number of financial professionals relocating to Paris from this year onwards. This article sets out some key practical considerations if you are considering a move.
Rent or buy?
The rental market in Paris is strong. Flats are typically rented furnished. Most flats available for rental are 1, 2 and 3 bedrooms of between 30 and 120 square metres. Good areas in which rentals are relatively plentiful are the Marais, the Left Bank and the 16th arrondissement.
You normally have to pay a deposit of one month’s rent. Typical rental figures for a 100 square metres flat in central Paris is € 3,500. Leases are usually for 12 months.
Rents usually include the service charge and local taxes. Points to look out for when you are asked to sign a lease are renewability and conditions suspensives (these are clauses inserted in the contract, pertaining to non-standard matters the owner wants to cover).
In 2017 the price per square metre to purchase is around € 11,000 for a flat in good condition. The market is busy, with the supply of flats limited and prices have been increasing over the last 12 months.
The French conveyancing process usually takes at least 2-3 months.
Where to live in Paris
In central Paris the best arrondissements are the 3, 4, 5, 6, 7, 8, 16 and 17. The most expensive streets to live on are on the Left Bank.
Up and coming areas where there is a good chance of capital growth are 9, 10, 11 and 12 arrondissements.
The usual mortgage rate is below 2 %. Mortgages are usually taken over 20 years. It is compulsory to have life assurance to cover the mortgage.
Main residences are exempt from capital gains in France. If you reside 6 months plus you are likely to become a French tax resident.
Agents who act for buyers rather than sellers usually charge a fee of 3% but it can be well worth it if they help you to avoid expensive mistakes.
Proximity of schools
The main international schools are in the west of Paris. Property around these schools fetches a premium which is likely to increase post Brexit.
Other aspects to consider
Working from home is usually not a problem. However if you receive customers at your flat you may be in breach of the flat rules.
Service charges are usually between €200 and €300 per month.
Parking is a problem in Paris. In Central Paris there is a parking permit system. Garage parking spaces typically rent for €250 per month.
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