Todays Exchange Rate :
1 EUR =
Please note: This is an approximate value.
The contractually binding price is the above indicated Euro price.
Exchange rates are served from the European Central Reserve Bank.
| FAQ |
|Q||Are there any other costs on top of the advertised price of the farm ? |
|R||Yes, we always include our own fees in the price, but there is stamp duty at 5.09% on most property transactions with the exception of properties that are owned by a VAT registered entity (person or company), in this case there is VAT to pay, but if the purchaser registers for VAT this can be claimed back. Properties bought through the SAFER are also exempt from this tax, but the SAFER will charge a fee of at least the same amount giving no saving. There are also Notaires fees and local taxes of a further 2 to 2.5% dependant on the value of the property. Allow 7.5% in all for any purchase an |
|Q||Can I roll over my capital gain from the UK? |
|R||We are competant to advise on French taxation matters, but this is a question relating to the UK. As far as we know, and we have several clients that have done it, it is possible to roll over a gain from the sale of land or agricultural buildings. The same may not be true though for sale of unrelated assets such as shares or second homes. |
|Q||Hello, Ive heard of a 40% taxation rate in France is this true? |
|R|| Yes, it varies between 41 and 43 % and is in fact the equivalent of UK National insurance contributions. But the rate is calculated on the net profit of the business. There are many ways to mitigate this, some are schemes provided by the government, others are simply ways that generate costs for the business without the equivalent cash outgoing for its owner, for example depreciation, self paid rentals et.c. FFT always advises its clients on the most tax efficient way to purchase and run the farm and other businesses we deal with. |
|Q||Is there decoupling in France as in the UK |
|R|| Yes, but there are some big differences that are too complex to cover here, notably in the annual claim and transfers. The main differences though are that there are still coupled payments for ewe headage (up to 24€/head), suckler cow premium (up to 187€/head), slaughter premium (up to 50 €/head) and protein crop area payments, along with several other niche production and extensification payments |
|Q||Do I need a farming qualification to farm in France? |
|R||If you are applying for state aid, for instance the young farmers scheme, yes. Contact us via the contacts page for details.
If you are not applying for state aid then no qualification is required, however an application for the right to farm the land must be made by those that do not have either an agricultural qualification, or are able to prove 5 years professional experience over the past 15 years. The right to farm is usually granted unless there are 2 candidates, in which case the more qualified will be given the authorisation. Over a certain surface area (102 Ha in the South Vienne)an |
|Q||How do I know what's included in the price of the property shown on the web site? |
|R|| We indicate a price for the land and/or buildings and house only. We will supply an inventory of livestock, deadstock and machinery available with the farm on request, but you will know that a farm requires a certain amount of stock and equipment in order to run it, and this can be bought either on or off the farm. We are happy to advise on capital requirements for any given property. |
|Q||Thank you for the details of the property. You have EBE followed by a figure. Can you tell me what EBE means? |
|R|| EBE stands for ‘excedente brut d’exploitation’. This is the standard measure of gross profit for any business in France. It is the trading surplus (or deficit) prior to management and investment income and depreciation. i.e. Profit that must serve to pay the farmer, repay any annuities, allow for depreciation of assets and show a return on investment. It is the key figure used by banks to assess the borrowing potential of a business and an investor to assess the level of risk. |
|Q||How much room for negotiation is there in these prices? |
|R|| Interesting and direct question - Its impossible to give an answer that will apply to all properties. Most french sellers tend to put what they consider to be a faire value on their property with only very small amount of manoeuvre. Some properties have been valued by an independant valuer; However, as everyone knows anything is only worth what someone else is prepared to pay for it, and in todays market (May 2010) there are less people out there prepared, or able to pay anything at all, so to answer your question, we will guide you but dont expect to pay the asking price, a 5 - 10% reduction could be hoped for. |
|Q||Please could you indicate on your site the scale of fees applicable to farm sales please? |
|R||France-Farms commission pricing
Sales of Land & Real Estate
Sales to a value of 250 000 € :
7% ex VAT ; 8.372% including VAT, minimum 4 186 € TTC
From 250 001 € to 500 000 € :
6% ex VAT ; 7.176% including VAT, minimum 20 930€ TTC
From 500 001 à 1 500 000 € :
5% ex VAT ; 5.98% including VAT, minimum 35 880€ TTC
1 500 001 € et plus :
4% ex VAT ; 4.784% including VAT, minimum 89 700€ TTC
One year’s rental payment with a minimum of 2 000 € (Two thousand Euros) ex VAT
Please contact us at our office or complete your details in the form below.
We’ll do our best to find the property for you.
15 Rue du Chateau
Tel: 0033 607 019 706
Fax: 0033 581 096 097