Actualité - What is the Transfer Tax?

Article updated on 23/10/2026

In France, the transfer duty (droit de mutation) is an essential concept in real estate transactions. It refers to all the fees, taxes and charges that the buyer of a property must pay upon the sale of that property. These fees are calculated based on the value of the property and vary depending on the nature of the transaction, particularly in the case of life annuity sales (viager).

We will therefore look at how transfer duty works, the specific cases for occupied or vacant viagers, as well as the elements needed to understand how notary fees are calculated.

In summary

Transfer duty refers to all the fees, taxes and charges that the buyer must pay when purchasing a property, often called "notary fees" (frais de notaires), and it is calculated based on the value of the property.
In a vacant viager (viager libre), transfer duties are calculated in the traditional way, on the total value (market value) of the property, as in a standard sale.
In an occupied viager (viager occupé), they are calculated on the "remaining amount to be sold" (reste à vendre), that is, the market value of the property minus the value of the right of use and occupancy (DUH), which depends in particular on the seller's life expectancy and age.
According to the FAQ, transfer duties are not refundable if the transaction fails, may vary by region or département, and can be estimated before the sale, with the precise calculation being made by a notary.

Update of Friday, 23 October:
Since the 2025 Finance Act (loi de finances 2025), départements may raise their rate to 5% for sales signed between April 2025 and March 2028; 84 have done so, which amounts to approximately €1,500 more on €300,000. First-time buyers are exempt from the increase. Source: WebLex; UFC-Que Choisir.

The principle of transfer duties

Transfer duties are fees that the buyer must pay at the time of purchase, and they are calculated based on the value of the property. These fees are often called "notary fees", even though they also include other costs such as the notary's fees and certain taxes. In short, transfer duties exist to formalize the sale and register the transfer of ownership of the property.

The buyer and registration duties

In a real estate transaction, the buyer, or annuity payer (débirentier) in the case of a viager, is responsible for paying the registration duties. This payment must be made upon the sale of the property. If the buyer is not subject to VAT, they must comply with these tax obligations and pay the transfer duties.

Transfer duty in the context of a viager

Real estate transactions carried out as a viager have specific features that change how transfer duties are calculated. A viager involves a sale in which payment is generally split into two parts: a bouquet (a lump sum paid immediately) and a life annuity (rente viagère, regular payments until the seller's death).

The vacant viager

In the case of a vacant viager, that is, without a right of use and occupancy, transfer duties are calculated on the total value of the property, i.e. its market value. The buyer must therefore pay transfer fees based on the total value of the property.

The occupied viager

By contrast, in an occupied viager, where the seller remains in the property until their death, transfer duties are calculated differently. They are based on the remaining amount to be sold: the market value of the property minus the value of the right of use and occupancy (DUH).

Calculating transfer duties in an occupied viager

Calculating transfer duties in an occupied viager is more complex than in a vacant viager, because they are calculated on the value of the "remaining amount to be sold", and not on the market value of the property as in a traditional sale.

Determining the DUH value

The value of the DUH (right of use and occupation) is calculated based on the seller's life expectancy and other criteria, such as the seller's age and the estimated value of the property. These elements make it possible to determine the amount that the seller's occupation of the property represents. This amount is then deducted from the market value to give us the amount of the remainder to be sold. It is on this sum that the amount of the bouquet (initial lump-sum payment) and the capital to be converted into an annuity are apportioned. It is also on this amount (remainder to be sold) that the transfer duties for the sale of a life annuity property with occupancy (viager occupé) are calculated.

Example: If the market value of the property is €350,000 and the value of the DUH is estimated at 40% of this value (i.e. €140,000), the transfer duties will be calculated on the value of €210,000, that is, the market value of the property after deducting the value of the occupation (€350,000 - €140,000).

In this example of a sale as a viager occupé, notary fees will be calculated on the value of the remainder to be sold, i.e. €210,000 in this case. It is therefore essential to know the value of the occupation in order to determine the exact amount of the transfer duties.

The key steps in calculating notary fees

The calculation of notary fees is based on several criteria. Here is how they are generally determined in a viager sale:

• Estimation of the market value of the property: The first step is to obtain an estimate of the value of the property. This assessment must be carried out by an expert advisor. At Capifrance, we have viager specialist advisors in many départements who can help you carry out this assessment as effectively as possible.

• Calculation of the DUH value: The value of the DUH is determined by taking into account the seller's life expectancy and other associated criteria. We need to know this value in order to apply a discount to the market value of the property.

• Calculation of the "remainder to be sold": Once the value of the DUH is known, we also know the amount of the remainder to be sold (market value - DUH value). It is on this reference amount that the transfer duties are calculated.

• Application of the transfer duty rate: The transfer duties are then calculated by applying a percentage (this percentage depends on a scale).

Conclusion

Transfer duty is one of the costs to be paid in a real estate transaction. In the case of a sale as a viager occupé, transfer duties are calculated on the value of the remainder to be sold (the market value of the property minus the DUH occupation value).

By contrast, for a viager libre (vacant life annuity sale), transfer duties are calculated in the traditional way, as for a standard sale.

Whether you are buying a property as a viager libre or a viager occupé, it is essential to understand these different calculations in order to anticipate the costs that will be your responsibility when the property is sold. A real estate advisor or a notary will be able to assist you in obtaining precise estimates and guide you through the steps to follow.
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FAQ:

Do notary fees vary depending on the region or the département?

Yes, transfer duties can vary from one region to another depending on local legislation. Some départements apply different rates, which can affect the total amount of fees to be paid.

Are transfer duties refundable if the transaction falls through?

No, transfer duties are under no circumstances refundable, and there is no reason to refund them, since they are paid upon signing the deed of sale.

Can the amount of transfer duties be estimated before the sale?

Yes, transfer duties can be estimated, but the precise calculation is done with a notary.
Buyers purchase a remainder to be sold, not a market value or a DUH value.

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Author

Frédéric Rémy – Director of Sales Performance

A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.