If you are buying a plot of land to build on...

When completing the purchase

• Good news: since October 1998, any individual buying land in order to build a dwelling on it no longer has to pay VAT at 19.60% (article 40 of the 1999 finance act).

• However, he must pay a "registration fee" equivalent to almost 5% of the price, which is collected by the solicitor (see the section on solicitor's fees above).

• Don't forget that you will have to pay a surveyor's fee if you want to have your land marked out and find out what are the exact boundaries, or have a soil survey carried out. The latter is highly recommended if you have any concerns about the nature of the land: it may well help you avoid any hidden costs when you start building (inadequate foundations, etc.).
  

When obtaining your building permit

• When issuing your building permit, the department and commune may charge you for various taxes and levies: a local facilities tax in most communes, a departmental tax to finance the Board of Architecture, Urban Development and the Environment (CAUE), a departmental tax for sensitive areas of countryside, a contribution for having exceed the statutory construction density limit, a contribution for having exceeded the site ratio, etc. Not all local authorities apply these charges. Check.

• You may also be asked to contribute to the financing of specific facilities and service connections, such as water, gas, electricity, drains, highways, etc.

• If you are buying a serviced plot of land, go to the Mairie to see the building lot by-law. This states which work must be paid for by the person buying the lot. The building of services and thoroughfares, access to the network and installation of meters are normally provided, but only to the edge of the plot. You will therefore have to pay from your own pocket for the cost of connecting the various meters at the "border" of your land to the house you are to build.

Saving money on renovation work: lower rate VAT

• Since 15 September, the VAT rate has been reduced from 19.6% to 5.5% for any work carried out in dwellings over two years old. This applies to both a main residence and a second home, a dwelling bought for renting, a barn, etc.

• This decrease also applies to the materials used, providing you use the services of a company to do the work.

• It applies to improvements, conversions and fit outs and also to small and large-scale maintenance work required to keep the premises in good condition (except of course cleaning). But it does not apply to building, re-building or extension work.

• Also excluded are spending on luxuries (such as a jacuzzi or sauna), garden maintenance and major installations such as a lift (except where installed for use by the disabled), shared heating systems and shared oil and gas tanks (but the work to fit these major installations will qualify for VAT at 5.5%).