Calculating Notary Fees: Methods and Concrete Examples

Why notary fees are decisive in any buy or rent calculation

In every serious buy or rent comparison, notary fees are a major part of the acquisition cost. They typically represent between 2% and 8% of the purchase price, easily tens of thousands of euros. In our simulator, this cost is captured by a key parameter: montant_fn, the total notary fee amount.

Understanding how these fees are calculated is essential if you want to compare buying a property versus renting and investing your savings (in ETFs, savings accounts, or other assets). A wrong estimate of montant_fn will immediately distort any buy or rent analysis.

What exactly is included in notary fees?

Notary fees are not just the notary's remuneration. They combine several items, many of which go straight to the State and local authorities. In the simulator, all of them are aggregated into the montant_fn parameter.

1. Transfer taxes (registration duties)

This is the largest component for existing properties. We commonly call them “notary fees”, but over 80% of the amount is actually tax:

• Registration duties: around 4.5% of the price in most départements.
• Land registration tax.
• Additional levies for the State and local authorities.

Overall, for a resale property, these taxes are around 5.8%–6% of the purchase price.

2. Disbursements

Disbursements are costs that the notary pays on your behalf:

• Land registry and publication fees.
• Urban planning documents.
• Mortgage and title searches, civil status documents, etc.

They are usually a few hundred euros (often €800–€1,200), included in the montant_fn in the simulator.

3. Notary's fees (emoluments)

The notary's remuneration is regulated and calculated by brackets on the property's price:

• 3.870% up to €6,500
• 1.596% from €6,501 to €17,000
• 1.064% from €17,001 to €60,000
• 0.799% above €60,000

A discount of up to 20% may be applied on the portion above €150,000. In practice, on a €250,000 property, notary emoluments are around €2,000–€2,500.

Old vs new: why montant_fn changes so much

The montant_fn parameter depends heavily on whether the property is old (resale) or new. This distinction is crucial in any buy or rent simulation.

Notary fees on existing (resale) properties

For existing homes (over 5 years old or already resold at least once), notary fees average 7%–8% of the purchase price.

Example 1: existing flat at €200,000

• Purchase price: €200,000
• Average notary fee rate (resale): 7.5%

We can estimate montant_fn as:

montant_fn = 200,000 × 7.5% = €15,000

Breakdown of these €15,000:

• Transfer taxes: ~€11,500
• Disbursements: ~€1,000
• Notary's emoluments: ~€2,500

Total acquisition cost becomes:

Total acquisition = 200,000 + 15,000 = €215,000

This extra €15,000 is an upfront cost that you never pay as a tenant. In a buy or rent comparison, these €15,000 could instead be invested (for example in an ETF) at the simulator's investment rate.

Notary fees on new-build properties

For new-builds (off-plan purchases, newly built homes, or properties under 5 years never resold), notary fees are significantly lower, around 2%–3%.

Example 2: new-build flat at €250,000

• Purchase price: €250,000
• Average notary fee rate (new-build): 2.5%

montant_fn = 250,000 × 2.5% = €6,250

Total acquisition cost becomes:

Total acquisition = 250,000 + 6,250 = €256,250

Compared to the resale market, you lock in much less capital in notary fees at the same price level. In a buy or rent simulation, this improves the relative attractiveness of buying new, because less of your savings are consumed by montant_fn.

How to quickly estimate your montant_fn without being off by more than 10%

For a first estimate, you do not need to recalculate every bracket of the notary's tariff. Average percentages are accurate enough for the montant_fn field in the simulator.

Simple rules of thumb

• Resale: use 8% of the purchase price (conservative estimate).
• New-build: use 3%.
• Land: often similar to resale, around 7%.

These approximations usually keep you within ±10% of the actual notary fees. To refine your figure, you can use a dedicated simulateur notaire (notary fee calculator) and then enter the result in the montant_fn field of our buy or rent tool.

Numeric examples by price range

Example 3: existing house at €300,000

• Assumption: resale, 8% fees
• montant_fn ≈ 300,000 × 8% = €24,000
• Total acquisition cost: €324,000

Example 4: new-build flat at €180,000

• Assumption: new-build, 3% fees
• montant_fn ≈ 180,000 × 3% = €5,400
• Total acquisition cost: €185,400

In both cases, montant_fn must be entered in the simulator to properly assess whether, over 15, 20 or 25 years, buying is better or worse than renting when you factor in rent, the loan rate (currently around 3.6%), annual inflation, and your investment rate.

How montant_fn affects a buy or rent decision

Notary fees are paid upfront at completion, either using your savings, or financed via the mortgage. In both cases, they have a real financial cost over time.

1. If notary fees are paid from your savings

Example 5: you have €40,000 in savings

• Resale price: €250,000
• Notary fees (8%): €20,000
• Savings used for montant_fn: €20,000
• Savings left to reduce the loan: €20,000

In the simulator, the €20,000 used for montant_fn can no longer be invested at your investment rate (say 4% per year net). Over 20 years, €20,000 invested at 4% would grow to approximately:

Future value ≈ 20,000 × (1.04)^20 ≈ €43,800

This opportunity cost must be included in your buy or rent thinking. As a tenant, you could keep that €20,000 invested and let it compound.

2. If notary fees are financed through the loan

Another common setup: you finance 100% of the price plus fees. In that case, montant_fn increases your loan principal, and you pay interest on it at the loan rate.

Example 6: full financing

• Purchase price: €220,000
• Notary fees (resale, 8%): €17,600
• Loan amount: €237,600
• Loan rate: 3.6%
• Term: 20 years

The interest paid on these €17,600 over 20 years will add several thousand euros to your total cost. In a detailed calculation, the simulator captures this via the initial loan balance and the loan rate.

Comparing two buy or rent scenarios with the same montant_fn

The montant_fn parameter always acts as a one‑off, largely non‑recoverable entry cost. To judge whether buying makes sense compared to renting, you need to weigh it against:

• The future value of the property (assuming prices go up or down).
• The rent you avoid paying, including its annual increase (linked to the IRL index in France).
• The investment return you could earn on your savings if you stayed a tenant.
• Other ownership costs: property tax (and its annual reassessment), maintenance, renovations, borrower insurance.

Example 7: buying vs renting for 10 years

Buying scenario:

• Resale price: €220,000
• montant_fn (8%): €17,600
• Loan rate: 3.6%
• Property tax: €1,200/year, increasing 2%/year
• Agency fees on resale: 4%

Renting scenario:

• Initial rent: €900/month
• Annual rent increase: 2% (IRL index)
• Investment rate: 4% net/year on savings not used for the purchase

The simulator will compare:

• The net equity you recover after selling (after notary fees, interest, property tax, possible renovation costs, agency fees).
• The wealth you build as a tenant by investing montant_fn and the monthly difference between mortgage payment and rent.

There is no universal answer: depending on price trends, inflation, and your investment returns, the outcome of the buy or rent question can change.

Other simulator parameters you should consider alongside montant_fn

montant_fn is only one parameter in the simulator, but it interacts with several others:

• Loan rate (~3.6% currently): the higher it is, the more expensive it becomes to finance notary fees with debt.
• Insurance rate (0.25%–0.45%): may apply on the loan principal including, in some cases, the notary fees.
• Property tax and its annual reassessment: an ongoing cost of ownership that tenants do not pay directly.
• Renovation cost: especially if the energy rating is poor (DPE F/G), renovations can be as costly as notary fees.
• Annual inflation: gradually erodes the real weight of notary fees, but also pushes up rents and other expenses.
• Agency fees on resale (3%–5%): another transaction cost that matters in a full life‑cycle buy or rent analysis.

It is the combination of all these parameters, not just montant_fn, that lets you make a rational buy or rent comparison.

Limits and caveats of notary fee calculations

1. Local variations: transfer tax rates differ between French départements, which can change montant_fn by a few hundred euros.

2. Promotional offers: some developers offer to cover part of the notary fees in the new‑build market. The underlying montant_fn still exists, but someone else pays it—reducing your effective entry cost in the simulator.

3. Percentage shortcuts: using 3% or 8% is convenient for planning but does not replace a precise quote from a notary or a specialized fee calculator.

4. No personal financial advice: all numbers and examples here are generic. The decision to buy or rent depends on your own situation, risk tolerance, and life plans.

Conclusion: using montant_fn properly in your buy or rent strategy

Notary fees are a major, often underestimated, entry cost in real estate. In practice, you can retain these benchmarks:

• Resale: 7%–8% of the price, i.e. €14,000–€16,000 on a €200,000 property.
• New‑build: 2%–3%, i.e. €4,000–€6,000 on €200,000.
• This montant_fn must be added to the purchase price and weighed against future rents and investment returns.

The answer to the buy or rent question will depend on your holding period, price dynamics, loan rate, investment rate, and your ability to absorb this upfront cost without draining your emergency fund.

This content is for information only and does not constitute personalized financial advice. To see the real impact of your notary fees and set the montant_fn parameter accurately, simulate your situation on buy-or-rent.net.