Notary fees on a rental property in France: deductible from rent?

Under the réel regime, article 31 of the Tax Code lists what comes off the rents: upkeep and repairs, insurance, property tax, loan interest, management costs. Transfer duties, the notary’s fees and the estate agent’s commission on the purchase are not on it.

For the tax authorities, these are costs incurred to acquire real estate capital: they follow the property, not the rents. So they do not create a rental deficit in the year of purchase.

Even the new depreciation for new or heavily renovated homes in apartment buildings, introduced by the 2026 Finance Act, is calculated on the price “net of fees”.

Under micro-foncier the question does not arise: the 30% allowance replaces all costs, whatever they are.

That part is deductible under the réel regime. When the loan is secured by a mortgage or a lender’s lien, the notary’s fees for that security, VAT included, count as loan costs, like the bank’s arrangement fees.

The tax authorities require their nature and amount to be shown separately from the purchase deed. And if the loan also paid the transfer duties, the interest on that part of the loan is deductible like the rest.

Yes: they are added to the purchase price, which reduces the capital gain. They count at their actual amount, with invoices, or as a flat 7.5% of the price, without proof.

In the example, the flat rate gives €15,000 and the invoice €16,631: the receipts add €1,631 to the price used.

The flat rate only applies to a property that was bought. For a property received by inheritance or gift, only the costs actually paid count, with proof.

A furnished landlord under the réel regime follows business rules: transfer duties, fees and commissions on the purchase are expensed in the year of purchase, or added to the cost of the property and depreciated with it. The choice is made by how they are recorded in the accounts.

This choice is irrevocable and applies to every asset on the balance sheet, not just the first property.

Under micro-BIC, profit equals receipts less a flat-rate allowance: the purchase costs change nothing. On resale, with some exceptions, depreciation deducted under the réel regime lowers the purchase price used.