US citizens: financing a property in France
Americans can buy property in France and borrow from French banks, but two points need preparing early: banking rules linked to US citizenship, and income paid in dollars.
FATCA and French banks
Because of the US FATCA reporting rules, French banks must report accounts held by US persons. Some institutions therefore limit account openings or loans for US citizens, while others accept them. A broker helps target banks that work with US profiles.
Dollar income
Income in USD adds an exchange-rate risk: the bank may apply a prudent rate, ask for a longer history or a larger deposit. The French 35% debt-to-income cap (insurance included) and the 25-year maximum term apply.
Documents to prepare
- Passport, proof of address, marital status.
- Recent pay stubs and W-2 forms; for the self-employed, business accounts and federal tax returns (Form 1040).
- Three months of bank statements, statements of existing loans and credit cards; a US credit report may be requested.
- Proof of the deposit and of the origin of funds.
Living in France
Owning a home does not give a right of residence. Without a long-stay visa, US citizens can stay in the Schengen area up to 90 days in any 180-day period.
Tax
US citizens are taxed by the United States on their worldwide income; the France–US tax treaty avoids double taxation in many cases. Rental income from French property is generally taxable in France. Get advice from a cross-border tax adviser.
Next: the French purchase process · current French mortgage rates.
Questions
Can an American get a mortgage in France?
Yes. Because of FATCA, some French banks limit accounts and loans for US persons, while others accept them; dollar income is assessed with a prudent exchange-rate assumption.
Does buying a home in France give a US citizen residency?
No. Without a long-stay visa, US citizens can stay up to 90 days in any 180-day period in the Schengen area.
Get a first review of your project
Describe your project, country of residence, income currency and deposit. You can write in English. A first review is free, does not commit you and is not a loan agreement: no rate is promised before a written bank offer.