What Are Real Estate Notary Fees Made Of?

Why notary fees matter in any buy or rent calculation

In a real estate decision, notary fees are one of the most overlooked costs when asking whether to buy or rent. In France, they typically represent around 7–8% of the price for an existing property and 2–3% for a new build. In a simulator like buy-or-rent.net, these costs are captured by the parameter montant_fn (total notary fees).

Understanding the notary fee breakdown is crucial if you want a data-driven buy or rent comparison. Most of what you pay does not go to the notary, but to the State and local authorities. This upfront cost is heavily front-loaded in the first year and can change the outcome of a buy vs rent model, especially if you plan to move again within a few years.

The 4 main components of notary fees in real estate

French real estate notary fees are made up of four main blocks:

• Transfer duties and real estate taxes (by far the largest part)
• Notary’s fees (regulated remuneration)
• Disbursements (third-party costs advanced by the notary)
• VAT on some of these elements

In the buy-or-rent.net simulator, the parameter montant_fn aggregates all these items into a single percentage of the purchase price, which differs depending on whether the property is new or existing.

1. Transfer duties and real estate taxes

This is the largest part of the notary fees. It corresponds to taxes collected on behalf of:

• The département
• The municipality
• The State (through the land registration tax)

They are usually called droits de mutation à titre onéreux (DMTO). In practice, they represent roughly:

• Around 5.80% of the price in most départements (existing properties)
• A lower rate in specific cases (certain new builds, special transactions, etc.)

On top of that you have the land registration tax and the real estate security contribution (around 0.10% of the price), which remunerate the State’s land registry service.

2. Notary’s fees (emoluments)

The notary’s fees are the regulated remuneration for drafting the deed and managing the transaction. They follow a tiered scale set by law. In real life, they usually amount to roughly:

• 0.7–1% of the purchase price, with legal minimums and caps

Contrary to popular belief, the notary does not pocket the full 7–8%: their share is relatively small compared with the taxes included in real estate notary fees.

3. Disbursements (third-party costs)

Disbursements are amounts the notary pays on your behalf to third parties:

• Cadastral and land registry documents
• Urban planning documents, potential surveyor fees
• Civil status documents and various certificates
• Condominium documents (for example, the “état daté” from the building manager)

They generally add up to a few hundred euros and are included in the global notary fee breakdown.

4. VAT

VAT applies to some parts of the bill, mainly to the notary’s fees and certain disbursements. From the buyer’s perspective, it is embedded in the total amount paid, which is exactly what the simulator uses through the montant_fn parameter.

Existing vs new property: why the percentage of notary fees changes

In any buy or rent simulation, a key distinction is made between:

• Existing property: notary fees ≈ 7–8% of the price
• New build: notary fees ≈ 2–3% of the price

The difference comes mainly from the level of real estate taxes, which is much higher on existing properties. For new builds, part of the taxation is shifted to the 20% VAT on the sale price, which reduces the transfer duties.

In buy-or-rent.net, the montant_fn parameter is therefore typically set to:

• 7–8% for existing housing
• 2–3% for new housing

This gap can amount to tens of thousands of euros and has a clear impact on the result of a buy or rent calculation, especially if you expect to sell the property after only a few years.

Numerical examples: the real impact of notary fees

Example 1: existing flat at €250,000

Let’s assume you buy an existing apartment for €250,000 (excluding notary fees):

• Property price: €250,000
• Estimated notary fees (8%): €20,000

Approximate notary fee breakdown:

• Transfer duties and real estate taxes (≈ 5.80%): €14,500
• Land registration and security contribution (≈ 0.10%): €250
• Notary’s fees (≈ 0.8%): €2,000
• Disbursements and miscellaneous: €1,500–2,000

Total upfront cost: around €270,000.

In a buy or rent model, these €20,000 leave your bank account in year one. If you decide to rent instead of buying, this money could be invested at a certain investment rate (for example 3–5% per year), which the buy-or-rent.net simulator can include in your long-term wealth projections.

Example 2: new build at €250,000

Now consider a new apartment at the same price of €250,000:

• Property price: €250,000
• Estimated notary fees (3%): €7,500

Approximate breakdown:

• Reduced transfer duties: €2,000–3,000
• Notary’s fees: €1,800–2,000
• Disbursements and miscellaneous: €1,500–2,000

Total upfront cost: around €257,500.

The €12,500 difference compared with the existing flat is significant in a buy or rent framework: it is either extra capital you can invest if you remain a tenant, or extra room for your down payment if you buy.

Notary fees and your mortgage: the hidden interaction

Notary fees interact directly with several other parameters of the simulator:

• Loan interest rate (~3.6%): the lower your down payment, the more you may want to roll notary fees into the mortgage, which increases total interest paid.
• Borrower insurance rate (0.25–0.45%): if notary fees are financed by the loan, they also raise the insured amount and therefore the cost of mortgage insurance.
• Prepayment penalties: if you sell early, you may face penalties on top of notary fees that have been amortised over only a few years, which weighs on the “buy” scenario in a buy or rent comparison.

Quick example: if you finance €20,000 of notary fees over 20 years at 3.6%, you will pay roughly €7,700 of interest on that portion alone, excluding insurance.

How notary fees shape the buy or rent decision

1. How long you keep the property

The longer you hold the property, the more the notary fees are “spread out” over time:

• Over 5 years, €20,000 of fees equal €4,000 per year
• Over 20 years, they equal €1,000 per year

In a buy or rent simulation, the montant_fn parameter is therefore particularly impactful for short-term projects (job mobility, family changes, uncertainty about location).

2. Alternative investment strategy

If you choose to rent, the money you do not spend on notary fees can be invested at a given investment rate (ETFs, savings accounts, life insurance, etc.). For example:

• €20,000 invested at 4% per year for 15 years ≈ €36,000

In a buy or rent calculation, it is essential to compare:

• Net wealth if you buy (property value – remaining mortgage – costs)
• Net wealth if you rent (capital + invested savings, after paying rent indexed to the annual rent increase)

The notary fees are one of the first major differences between these two paths.

3. City and local tax environment

Notary fees are largely made up of local real estate taxes set at département and municipal level. While the general range is similar, the exact rates vary by location. Moreover, once you own, you will also pay property tax every year, which can range from about €450 to over €5,000 depending on the city and property value, with frequent annual reassessments of property tax.

In a full buy or rent analysis, you cannot stop at notary fees alone: they must be added to all the recurring ownership costs.

Notary fees, renovation and property value

If you buy a property requiring significant renovation (energy upgrade, compliance work, improving the energy performance certificate), two effects combine:

• Notary fees are calculated on the purchase price stated in the deed (excluding renovation works done after completion).
• The renovation budget increases your total investment and can potentially raise the resale value.

In a buy or rent simulation, it is useful to compare:

• Scenario 1: buy + notary fees + renovation + potential capital gain
• Scenario 2: keep renting + invest the equivalent amount (including notary fees) in financial assets

Notary fees themselves do not generate any return: they are an entry cost you pay to access the real estate market.

How to correctly input notary fees in your simulation

To make your buy or rent calculation realistic, a few best practices help:

• Use the right percentage: 7–8% for existing property, 2–3% for new build, unless a specific exception applies.
• Don’t forget other acquisition costs: agency fees (often 3–5%), possible broker fees.
• Specify whether notary fees are financed by the loan or paid from your savings, as this changes interest and insurance costs.
• Run scenarios on different time horizons (5, 10, 20 years) that match your life plans, to see how notary fees are amortised over time.

The buy-or-rent.net simulator lets you enter your montant_fn and instantly see how this cost line affects your future net wealth, taking into account the loan rate, annual inflation, your investment rate and the annual rent increase.

Conclusion: a decisive entry cost, but only one piece of the puzzle

Real estate notary fees are mostly made up of taxes and transfer duties (DMTO, land registration, security contribution), plus the notary’s regulated fees, disbursements and VAT. On average they reach around 7–8% for existing property and 2–3% for new build and must be carefully included in any serious buy or rent analysis.

Whether buying or renting is better depends on your personal situation, time horizon, savings capacity and risk tolerance. This article is for educational purposes only and does not constitute personalised financial advice.

To see the concrete impact of notary fees (montant_fn) in your own case, together with current mortgage rates, future rents and potential investment returns, simulate your situation on buy-or-rent.net.