French purchase of farm
Migration Program Details & Application
Program Overview
Buying French farms
Project Description
I. Core Positioning of the French Farm Market
The most significant difference between the French farm market and those of other European countries like Germany and the UK lies in the Fermage system, which highly separates land ownership from management rights. Approximately two-thirds of agricultural land in France is cultivated under the Fermage system, where the relationship between tenant farmers (Fermier) and landowners (Propriétaire) is strictly governed by the Rural and Maritime Fisheries Code, forming an extremely stable agricultural leasing ecosystem. This system has a dual impact on foreign buyers: on the one hand, purchasing a farm with an existing lease provides immediate and stable rental income; on the other hand, the land is locked in by the existing lease, limiting the owner's decision-making power regarding land use during the lease term (at least nine years).
According to data from the French Ministry of Agriculture (SAFER source), the market value of leased land (with leases) in France is €5,220 per hectare, while the market price for available bare land is €6,400 per hectare, equivalent to 181 TP3T. The French agricultural land market has shown steady growth over the past decade. In 2024 compared to 2012, leased land prices increased by 281 TP3T in Brittany, 291 TP3T in the Centre-Loire Valley, and 451 TP3T in Hauts-de-France; however, the increase was only 91 TP3T in Burgundy-Franche-Comté and 151 TP3T in Auvergne-Rhône-Alpes, showing significant regional differences.
The Île-de-France region is one of France's major grain-producing areas, with over 560,000 hectares of arable land. In the first half of 2025, the average price of agricultural land in Île-de-France was approximately €7,829 per hectare, with a median price of €7,799 per hectare. Transactions were concentrated in major grain-producing areas such as Brie, Vexin, and Hurepoix. Île-de-France serves as a comparison to the premium on farmland prices around major cities.
Land prices for leased land are expected to rise moderately across France by 2025, with the value of leased land almost in line with the inflation rate since 2012 (an increase of 261 TP3T), indicating a continued strengthening of the market's attractiveness to agricultural land. However, significant uncertainties remain in the long-term outlook: by 2100, the value of farmland in large areas of southwestern France is projected to decline by 601 TP3T to 801 TP3T, while the value in the eastern region and the Paris region is projected to decline by 401 TP3T to 601 TP3T. Climate change is reshaping the long-term prospects for agricultural land.
II. Four Core Forms of French Farms
Category 1: Bare land (Terres Nues)
The most basic form of agricultural investment involves purchasing plots of arable land, pasture, or vineyards on a hectare basis, without attached buildings or residences. Prices depend on soil grade (Ackerzahl coefficient), irrigation facilities, and local market demand. Bare land transactions are straightforward under the supervision of SAFER's right of first refusal. Foreign buyers with agricultural experience or those leasing the land to existing tenants have a higher approval rate through SAFER. In France, bare land prices are clearly categorized by lease status into "Bail rural lease land" (with an existing lease) and "land available for rent" (without an existing lease). The market price for "Bail rural lease land" ownership is constant at €4,950–€5,220 per hectare, while the market price for "Land available for rent" averages €6,400 per hectare, a difference of 18%.
Category 2: Agricultural Business Units (Ferme Exploitée)
A complete farm includes farmhouses (Corps de Ferme), livestock or crop production facilities, storage facilities, and associated land. These farms typically generate stable agricultural income, have a traceable operating history, and some have obtained the French Ministry of Agriculture's bio-label. This type of farm is suitable for genuine farmers who wish to directly engage in agricultural operations and apply for EU Common Agricultural Policy (CAP) subsidies. The actual selling price generally ranges from €500,000 to €3,000,000, depending on the completeness of the facilities and the age of the equipment.
Category 3: Mixed-use estates (Propriété Rurale Mixte)
Rural properties, consisting of renovated country mansions or medieval stone houses built on farmland, serve a dual purpose of owner-occupancy and agricultural activities. These assets are most popular with lifestyle-oriented buyers and often include natural elements such as woodlands, lakes, and gardens. Buyers can enjoy a rural lifestyle while reserving part of the land for agricultural rentals to offset holding costs.
Category 4: Ruin farms and farmhouses awaiting restoration (Ferme en Ruine)
Acquire severely degraded farmhouse groups, renovate and convert them into guesthouses, wedding venues, or private villas. Buyers require substantial capital investment and must comply with local urban planning (PLU) restrictions. Converting agricultural buildings to residential use requires a planning permit (Permis de Construire) or prior declaration (Déclaration Préalable) from the municipality. Building permits apply to new construction, renovations, or changes in the use of agricultural buildings.
III. Core Rules for Leasing and Operation – The Fermage System
In France, about two-thirds of agricultural land is leased to tenant farmers (fermier) under the "Fermage" system, with the landlord's rights strictly limited by the Code Rural.
• Minimum lease term of at least 9 years: Shareholders obtain stable long-term operating rights and can make capital investments without worrying about being taken back at any time.
• Automatic lease renewal: The lease will be automatically renewed for the same number of years upon expiration, unless the landowner reclaims the land for cultivation under strict conditions, or the tenant voluntarily relinquishes the lease.
• Rent control: Rent is calculated based on the provincial index (annual). The index adjustment in 2025 will refer to the previous year's growth of 0.42%, which effectively prevents landlords from abusing their bargaining power.
• Landlords cannot arbitrarily raise prices or reclaim land when renewing leases: Landlords must provide written notice to tenants when the lease expires, and can only claim the "right of first repossession" under limited legal circumstances—including self-cultivation of land, transfer of farmland to relatives, or transfer to young farmers.
The Fermage system has played a vital role in stabilizing agricultural operations, but it restricts the freedom of purchasers. If a new landowner buys farmland with an existing 9-year or 18-year lease, they must wait until the lease expires before they can reclaim the land for self-cultivation or renegotiate the price. They cannot arbitrarily evict tenants or raise prices during the lease term—this is a core legal obligation that foreign buyers must fully understand before investing in French farmland.
Project Description
I. Core Positioning of the French Farm Market
The most significant difference between the French farm market and those of other European countries like Germany and the UK lies in the Fermage system, which highly separates land ownership from management rights. Approximately two-thirds of agricultural land in France is cultivated under the Fermage system, where the relationship between tenant farmers (Fermier) and landowners (Propriétaire) is strictly governed by the Rural and Maritime Fisheries Code, forming an extremely stable agricultural leasing ecosystem. This system has a dual impact on foreign buyers: on the one hand, purchasing a farm with an existing lease provides immediate and stable rental income; on the other hand, the land is locked in by the existing lease, limiting the owner's decision-making power regarding land use during the lease term (at least nine years).
According to data from the French Ministry of Agriculture (SAFER source), the market value of leased land (with leases) in France is €5,220 per hectare, while the market price for available bare land is €6,400 per hectare, equivalent to 181 TP3T. The French agricultural land market has shown steady growth over the past decade. In 2024 compared to 2012, leased land prices increased by 281 TP3T in Brittany, 291 TP3T in the Centre-Loire Valley, and 451 TP3T in Hauts-de-France; however, the increase was only 91 TP3T in Burgundy-Franche-Comté and 151 TP3T in Auvergne-Rhône-Alpes, showing significant regional differences.
The Île-de-France region is one of France's major grain-producing areas, with over 560,000 hectares of arable land. In the first half of 2025, the average price of agricultural land in Île-de-France was approximately €7,829 per hectare, with a median price of €7,799 per hectare. Transactions were concentrated in major grain-producing areas such as Brie, Vexin, and Hurepoix. Île-de-France serves as a comparison to the premium on farmland prices around major cities.
Land prices for leased land are expected to rise moderately across France by 2025, with the value of leased land almost in line with the inflation rate since 2012 (an increase of 261 TP3T), indicating a continued strengthening of the market's attractiveness to agricultural land. However, significant uncertainties remain in the long-term outlook: by 2100, the value of farmland in large areas of southwestern France is projected to decline by 601 TP3T to 801 TP3T, while the value in the eastern region and the Paris region is projected to decline by 401 TP3T to 601 TP3T. Climate change is reshaping the long-term prospects for agricultural land.
II. Four Core Forms of French Farms
Category 1: Bare land (Terres Nues)
The most basic form of agricultural investment involves purchasing plots of arable land, pasture, or vineyards on a hectare basis, without attached buildings or residences. Prices depend on soil grade (Ackerzahl coefficient), irrigation facilities, and local market demand. Bare land transactions are straightforward under the supervision of SAFER's right of first refusal. Foreign buyers with agricultural experience or those leasing the land to existing tenants have a higher approval rate through SAFER. In France, bare land prices are clearly categorized by lease status into "Bail rural lease land" (with an existing lease) and "land available for rent" (without an existing lease). The market price for "Bail rural lease land" ownership is constant at €4,950–€5,220 per hectare, while the market price for "Land available for rent" averages €6,400 per hectare, a difference of 18%.
Category 2: Agricultural Business Units (Ferme Exploitée)
A complete farm includes farmhouses (Corps de Ferme), livestock or crop production facilities, storage facilities, and associated land. These farms typically generate stable agricultural income, have a traceable operating history, and some have obtained the French Ministry of Agriculture's bio-label. This type of farm is suitable for genuine farmers who wish to directly engage in agricultural operations and apply for EU Common Agricultural Policy (CAP) subsidies. The actual selling price generally ranges from €500,000 to €3,000,000, depending on the completeness of the facilities and the age of the equipment.
Category 3: Mixed-use estates (Propriété Rurale Mixte)
Rural properties, consisting of renovated country mansions or medieval stone houses built on farmland, serve a dual purpose of owner-occupancy and agricultural activities. These assets are most popular with lifestyle-oriented buyers and often include natural elements such as woodlands, lakes, and gardens. Buyers can enjoy a rural lifestyle while reserving part of the land for agricultural rentals to offset holding costs.
Category 4: Ruin farms and farmhouses awaiting restoration (Ferme en Ruine)
Acquire severely degraded farmhouse groups, renovate and convert them into guesthouses, wedding venues, or private villas. Buyers require substantial capital investment and must comply with local urban planning (PLU) restrictions. Converting agricultural buildings to residential use requires a planning permit (Permis de Construire) or prior declaration (Déclaration Préalable) from the municipality. Building permits apply to new construction, renovations, or changes in the use of agricultural buildings.
III. Core Rules for Leasing and Operation – The Fermage System
In France, about two-thirds of agricultural land is leased to tenant farmers (fermier) under the "Fermage" system, with the landlord's rights strictly limited by the Code Rural.
• Minimum lease term of at least 9 years: Shareholders obtain stable long-term operating rights and can make capital investments without worrying about being taken back at any time.
• Automatic lease renewal: The lease will be automatically renewed for the same number of years upon expiration, unless the landowner reclaims the land for cultivation under strict conditions, or the tenant voluntarily relinquishes the lease.
• Rent control: Rent is calculated based on the provincial index (annual). The index adjustment in 2025 will refer to the previous year's growth of 0.42%, which effectively prevents landlords from abusing their bargaining power.
• Landlords cannot arbitrarily raise prices or reclaim land when renewing leases: Landlords must provide written notice to tenants when the lease expires, and can only claim the "right of first repossession" under limited legal circumstances—including self-cultivation of land, transfer of farmland to relatives, or transfer to young farmers.
The Fermage system has played a vital role in stabilizing agricultural operations, but it restricts the freedom of purchasers. If a new landowner buys farmland with an existing 9-year or 18-year lease, they must wait until the lease expires before they can reclaim the land for self-cultivation or renegotiate the price. They cannot arbitrarily evict tenants or raise prices during the lease term—this is a core legal obligation that foreign buyers must fully understand before investing in French farmland.
Eligibility & Requirements
Evaluate
I. Advantages
1. No nationality restrictions for foreign buyers – complete legal equality. France does not have general legal restrictions on foreign investors in real estate. Foreign capital can directly or indirectly hold agricultural real estate through companies such as SCI (Société Civile Immobilière, a French civil real estate company). There are no special approval requirements from the Ministry of the Interior, as in Austria or some German states, a decisive difference between France and countries like Germany and Austria. In 2025, the French Ministry of Justice confirmed that there is no legislation generally prohibiting the sale of French real estate to foreign nationals. In the Nouvelle-Aquitaine and Occitanie regions of southwestern France, foreign buyers already account for approximately 30% of real estate transactions, demonstrating the attractiveness of agricultural areas to international buyers.
2. Mixed-use farmhouses and farmland can reduce stamp duty. In farm transactions involving farmhouses (residential), arable land, and non-residential buildings (barns, workshops), notary fees are calculated at a lower rate because agricultural buildings and land use are considered non-residential components. The total notary fee and transfer tax for secondhand homes in France is approximately 7%–8%, but the actual additional tax rate for mixed-use farms may be slightly lower due to classification differences.
3. Leased farmland offers stable cash flow and enjoys price discounts. In France, leased farmland (Bail) trades for €5,220/hectare, 181 TP3T lower than unleased farmland (€6,400/hectare). This discount provides long-term buyers with a stable rental yield (approximately 21-41 TP3T/year), and the automatic renewal of the lease ensures a continuous and stable rental flow. Against the backdrop of a long-term, moderate increase in land prices, this translates to a double return from both rental income and land appreciation.
4. The unique French SCI (Société Civile Immobilière) structure offers tax optimization and inheritance convenience. An SCI is a standardized legal entity for holding French farmland. Holding farmland through an SCI allows for (1) avoiding the separate apportionment of land plots by each shareholder, (2) simplifying equity transfers instead of real estate transfers, and (3) enjoying the Dutreil Pacte (agricultural inheritance tax) exemption. Foreign shareholders can indirectly hold farmland through an SCI without direct involvement in management. However, the sale of SCI shares may trigger a higher capital gains tax.
5. Stable Payments of CAP Agricultural Subsidies (2023–2027). Under the framework of the EU Common Agricultural Policy 2023–2027 strategic plan, approximately €6.3 billion is disbursed annually to farmers through the French Ministry of Agriculture. Major subsidies include basic income support (Basisprämie), payments per hectare (based on historical reference rights), and new ecological programs (Öko-Regelungen) supporting ecological practices such as permanent grasslands and biodiversity zones. Young farmers can also receive an additional bonus subsidy of approximately €67 per hectare (up to a maximum of approximately 120 hectares) for up to five years. However, subsidy funding is shifting from the original yield-based BPS to ecological programs based on environmental protection. When purchasing a farm, it is essential to verify whether the seller's subsidy reference rights have been transferred to the buyer.
6. Agricultural land enjoys a significant estate tax exemption mechanism (Pacte Dutreil). Pacte Dutreil provides a 75% exemption from estate and gift tax for the transfer of shares in family businesses (including agricultural businesses, such as those holding farmland through GAEC or EARL agricultural companies), provided that the agricultural business continues and is collectively held. This exemption significantly reduces the tax burden on farms transferred between immediate family members. Spouses and civil partners (PACS partners) are themselves completely exempt from estate tax.
7. Comparison of policies in Spain, Germany, and France. Spain has no nationality restrictions for foreign buyers and offers regional exemptions for inheritance tax (Andalusia, Madrid, etc., with exemptions of 99%). France does not offer such full exemptions, but its Pacte Dutreil provides a 75% exemption for agricultural enterprises, and the property tax (Taxe Foncière) on agricultural land is relatively light, resulting in lower holding costs compared to UK farms (the UK is impacted by the new APR regulations in April 2026, with an inheritance tax rate of 20% for the portion exceeding £1 million). Compared to Germany, France does not require special approval for agricultural land purchases, and the transaction process is shorter.
II. Major Risks and Costs
1. SAFER Right of First Refusal – The Biggest Regulatory Risk for Foreign Buyers Purchasing Farmland. SAFER, a semi-official body established under French law, has the right of first refusal for the sale of any rural property (including agricultural land, farms, and agricultural buildings) nationwide, provided the property is designated for agricultural use. Once a notary notifies SAFER of a valid Declaration of Intent to Sell (DIA), SAFER can review the buyer's agricultural plans and assess the offer within two months. If the buyer is not a local farmer or the investment plan does not conform to local agricultural planning, SAFER can exercise its right of first refusal to replace the buyer at the same price. SAFER reviews approximately 0.4% of declared farmland transactions annually, but this threshold has a greater impact on foreign buyers, especially lifestyle buyers without agricultural training.
2. Notary fees and various additional costs account for a high proportion of real estate transactions. In France, the combined notary fees and transfer tax for second-hand housing transactions are approximately 7%–8% of the transaction price. For example, for a €500,000 farm, the additional cash expenditure is approximately €35,000 to €40,000, and this transaction cost cannot be financed through a loan and must be paid in full upfront.
3. Agricultural leases impose extremely stringent restrictions on landowners. Once a current agricultural lease is signed and the tenant does not violate the contract, a new landlord cannot terminate the contract early or increase the rent. Tenants have the right to change crop varieties and expand production areas. Landlords can only regain possession of the land upon lease expiration and solely for specific legal grounds (such as reclaiming it for self-cultivation or transferring it to relatives); if the purpose of reclamation is false, the tenant can pursue legal action. The minimum lease term is 9 years (with maximum long-term leases of 18 or even 25 years), during which time the landowner cannot evict the land for any reason.
4. Land use and agricultural building renovation planning approvals are stringent. Any new construction, renovation, or change of use of agricultural buildings (such as converting a barn into a residence) requires a city planning permit (Building Permit Permis de Construire or Pre-declaration Déclaration Préalable) from the local municipality. Obtaining a permit is extremely difficult, especially if the property is located in a protected area or near historical sites. Even renovations of small agricultural buildings (under 20 square meters) may require pre-declaration.
5. Complex Deferred Obligations of CAP Subsidies. After purchasing a large farm, the buyer must register with the Ministry of Agriculture and submit their eligibility information. Some ecological obligations included in the subsidy (such as GAEC standards) may carry over to the buyer and incur additional costs. The subsidy pool is limited, and applications must be submitted for annual field blocks before the deadline (approximately mid-May each year). Policy windows for various ecological programs are subject to change. If the seller has received an advance payment exceeding the total subsidy amount, the buyer must reimburse the difference. Non-EU citizens must hold a French residence permit to apply for CAP subsidies.
6. Inheritance tax is levied at higher rates on distant relatives and non-lineal heirs. Lineal children have a tax exemption of €100,000, with tax rates progressively from 5% to 45%. Siblings have a tax exemption of €15,932, with tax rates also progressively higher. For foreign buyers, the most severe tax effect is seen in the fact that non-blood-related beneficiaries (friends, distant relatives) can only receive a maximum tax exemption of €1,594, exacerbating the tax burden on heirs outside the family.
7. Loan collateral restrictions and down payment requirements for foreign buyers. French banks are generally more conservative in approving agricultural loans than residential loans. Foreigners and de facto non-residents typically require higher down payments: 20%–40%, and loan-to-value (LTV) of 50%–70%. Credit Agricole for Agriculture and BPCE Group are more cautious in lending to non-French/non-resident buyers without collateral in France, and require the purchase of life insurance.
8. Additional pressure from Foncière Tax and new energy regulations. The French local property tax (Taxe Foncière) is approximately 0.2%–1.2% of the theoretical rental value of a property, varying greatly from region to region. Farmhouses with a G-grade DPE (Diagnostic Energy Performance) rating will be prohibited from being rented out from 2025, and those with an F-grade rating will also face a ban from 2028, leading to anticipated increases in renovation costs.
I. Advantages
1. No nationality restrictions for foreign buyers – complete legal equality. France does not have general legal restrictions on foreign investors in real estate. Foreign capital can directly or indirectly hold agricultural real estate through companies such as SCI (Société Civile Immobilière, a French civil real estate company). There are no special approval requirements from the Ministry of the Interior, as in Austria or some German states, a decisive difference between France and countries like Germany and Austria. In 2025, the French Ministry of Justice confirmed that there is no legislation generally prohibiting the sale of French real estate to foreign nationals. In the Nouvelle-Aquitaine and Occitanie regions of southwestern France, foreign buyers already account for approximately 30% of real estate transactions, demonstrating the attractiveness of agricultural areas to international buyers.
2. Mixed-use farmhouses and farmland can reduce stamp duty. In farm transactions involving farmhouses (residential), arable land, and non-residential buildings (barns, workshops), notary fees are calculated at a lower rate because agricultural buildings and land use are considered non-residential components. The total notary fee and transfer tax for secondhand homes in France is approximately 7%–8%, but the actual additional tax rate for mixed-use farms may be slightly lower due to classification differences.
3. Leased farmland offers stable cash flow and enjoys price discounts. In France, leased farmland (Bail) trades for €5,220/hectare, 181 TP3T lower than unleased farmland (€6,400/hectare). This discount provides long-term buyers with a stable rental yield (approximately 21-41 TP3T/year), and the automatic renewal of the lease ensures a continuous and stable rental flow. Against the backdrop of a long-term, moderate increase in land prices, this translates to a double return from both rental income and land appreciation.
4. The unique French SCI (Société Civile Immobilière) structure offers tax optimization and inheritance convenience. An SCI is a standardized legal entity for holding French farmland. Holding farmland through an SCI allows for (1) avoiding the separate apportionment of land plots by each shareholder, (2) simplifying equity transfers instead of real estate transfers, and (3) enjoying the Dutreil Pacte (agricultural inheritance tax) exemption. Foreign shareholders can indirectly hold farmland through an SCI without direct involvement in management. However, the sale of SCI shares may trigger a higher capital gains tax.
5. Stable Payments of CAP Agricultural Subsidies (2023–2027). Under the framework of the EU Common Agricultural Policy 2023–2027 strategic plan, approximately €6.3 billion is disbursed annually to farmers through the French Ministry of Agriculture. Major subsidies include basic income support (Basisprämie), payments per hectare (based on historical reference rights), and new ecological programs (Öko-Regelungen) supporting ecological practices such as permanent grasslands and biodiversity zones. Young farmers can also receive an additional bonus subsidy of approximately €67 per hectare (up to a maximum of approximately 120 hectares) for up to five years. However, subsidy funding is shifting from the original yield-based BPS to ecological programs based on environmental protection. When purchasing a farm, it is essential to verify whether the seller's subsidy reference rights have been transferred to the buyer.
6. Agricultural land enjoys a significant estate tax exemption mechanism (Pacte Dutreil). Pacte Dutreil provides a 75% exemption from estate and gift tax for the transfer of shares in family businesses (including agricultural businesses, such as those holding farmland through GAEC or EARL agricultural companies), provided that the agricultural business continues and is collectively held. This exemption significantly reduces the tax burden on farms transferred between immediate family members. Spouses and civil partners (PACS partners) are themselves completely exempt from estate tax.
7. Comparison of policies in Spain, Germany, and France. Spain has no nationality restrictions for foreign buyers and offers regional exemptions for inheritance tax (Andalusia, Madrid, etc., with exemptions of 99%). France does not offer such full exemptions, but its Pacte Dutreil provides a 75% exemption for agricultural enterprises, and the property tax (Taxe Foncière) on agricultural land is relatively light, resulting in lower holding costs compared to UK farms (the UK is impacted by the new APR regulations in April 2026, with an inheritance tax rate of 20% for the portion exceeding £1 million). Compared to Germany, France does not require special approval for agricultural land purchases, and the transaction process is shorter.
II. Major Risks and Costs
1. SAFER Right of First Refusal – The Biggest Regulatory Risk for Foreign Buyers Purchasing Farmland. SAFER, a semi-official body established under French law, has the right of first refusal for the sale of any rural property (including agricultural land, farms, and agricultural buildings) nationwide, provided the property is designated for agricultural use. Once a notary notifies SAFER of a valid Declaration of Intent to Sell (DIA), SAFER can review the buyer's agricultural plans and assess the offer within two months. If the buyer is not a local farmer or the investment plan does not conform to local agricultural planning, SAFER can exercise its right of first refusal to replace the buyer at the same price. SAFER reviews approximately 0.4% of declared farmland transactions annually, but this threshold has a greater impact on foreign buyers, especially lifestyle buyers without agricultural training.
2. Notary fees and various additional costs account for a high proportion of real estate transactions. In France, the combined notary fees and transfer tax for second-hand housing transactions are approximately 7%–8% of the transaction price. For example, for a €500,000 farm, the additional cash expenditure is approximately €35,000 to €40,000, and this transaction cost cannot be financed through a loan and must be paid in full upfront.
3. Agricultural leases impose extremely stringent restrictions on landowners. Once a current agricultural lease is signed and the tenant does not violate the contract, a new landlord cannot terminate the contract early or increase the rent. Tenants have the right to change crop varieties and expand production areas. Landlords can only regain possession of the land upon lease expiration and solely for specific legal grounds (such as reclaiming it for self-cultivation or transferring it to relatives); if the purpose of reclamation is false, the tenant can pursue legal action. The minimum lease term is 9 years (with maximum long-term leases of 18 or even 25 years), during which time the landowner cannot evict the land for any reason.
4. Land use and agricultural building renovation planning approvals are stringent. Any new construction, renovation, or change of use of agricultural buildings (such as converting a barn into a residence) requires a city planning permit (Building Permit Permis de Construire or Pre-declaration Déclaration Préalable) from the local municipality. Obtaining a permit is extremely difficult, especially if the property is located in a protected area or near historical sites. Even renovations of small agricultural buildings (under 20 square meters) may require pre-declaration.
5. Complex Deferred Obligations of CAP Subsidies. After purchasing a large farm, the buyer must register with the Ministry of Agriculture and submit their eligibility information. Some ecological obligations included in the subsidy (such as GAEC standards) may carry over to the buyer and incur additional costs. The subsidy pool is limited, and applications must be submitted for annual field blocks before the deadline (approximately mid-May each year). Policy windows for various ecological programs are subject to change. If the seller has received an advance payment exceeding the total subsidy amount, the buyer must reimburse the difference. Non-EU citizens must hold a French residence permit to apply for CAP subsidies.
6. Inheritance tax is levied at higher rates on distant relatives and non-lineal heirs. Lineal children have a tax exemption of €100,000, with tax rates progressively from 5% to 45%. Siblings have a tax exemption of €15,932, with tax rates also progressively higher. For foreign buyers, the most severe tax effect is seen in the fact that non-blood-related beneficiaries (friends, distant relatives) can only receive a maximum tax exemption of €1,594, exacerbating the tax burden on heirs outside the family.
7. Loan collateral restrictions and down payment requirements for foreign buyers. French banks are generally more conservative in approving agricultural loans than residential loans. Foreigners and de facto non-residents typically require higher down payments: 20%–40%, and loan-to-value (LTV) of 50%–70%. Credit Agricole for Agriculture and BPCE Group are more cautious in lending to non-French/non-resident buyers without collateral in France, and require the purchase of life insurance.
8. Additional pressure from Foncière Tax and new energy regulations. The French local property tax (Taxe Foncière) is approximately 0.2%–1.2% of the theoretical rental value of a property, varying greatly from region to region. Farmhouses with a G-grade DPE (Diagnostic Energy Performance) rating will be prohibited from being rented out from 2025, and those with an F-grade rating will also face a ban from 2028, leading to anticipated increases in renovation costs.
Application Process & Advice
suggestion
I. Clarify the type of investment project and expected return.
Investment type, area/price range, main sources of return, management involvement
Bare land investment (with or without lease) 10–100 hectares, from €52,200. Low rental income + land appreciation (tenant farmers).
Fully operated farms: 50–200 hectares, €500k–€3M. CAP subsidy + operating income + high/medium value-added (requires professional skills).
Mixed-use estate (farmland + residential) €300k–€1.5M Lifestyle + land value + low to medium rent
Farmhouse in need of repair + farmland €150k–€500k (additional fee required for renovation) Price difference between renovation and transaction price + higher for short-term rentals/tourism (requires developer-level management)
For pure capital allocators: farmland with leases is preferred, offering stable bond-like returns (approximately 2%–4%), is not hindered by SAFER approval, and is priced at a discount of 18% compared to freely leased land.
II. Budget Structure
Recommendation on the proportion of the project cost to the purchase price
Farm purchase price (including agent commission): 65%–75%
Notary fees + one-time transaction fees (including tax) amounting to 7%–8% of the purchase price.
Farmland/building maintenance, repair and emergency repair purchase price 15%–35%
Annual holding reserves (including property tax, insurance, and landscaping) = 1%–2%/year of the purchase price
III. Advance Planning for SAFER Application
Before signing the pre-sale contract (Compromis de Vente), non-EU resident applicants should submit a complete agricultural operation plan (Plan d'Exploitation) for the farmland transaction, negotiated with a notary or through the legally designated SAFER district. Refer to the French Ministry of Agriculture website (www.safer.fr) for the conditions of each SAFER district. If the buyer's purchase motive is deemed speculative, they are likely to be subject to priority purchase. It is recommended to consult the French Chamber of Agriculture (Chambre d'Agriculture) to assess the probability of a successful application.
It is recommended to include a clause in the initial purchase contract stating that "SAFER will receive a full refund of the deposit if he exercises his right of first refusal."
IV. Realistic Understanding of Fermage (Agricultural Leasing) and Adjustment of Rental Returns
If the farm you are purchasing already has a fermage, you will need to:
• The lawyer reviews the type of existing lease: a 9-year standard lease, an 18-year medium-term lease, or a 25-year long-term lease.
• Calculate rental yield: Annual adjustments are made based on the rental index determined by provincial order.
• Consider whether to reclaim self-cultivated land upon contract expiration or renew contracts with existing tenants.
• Add biodiversity conservation and soil restoration clauses to environmental leases to leverage CAP ecological program subsidies.
V. Pacte Dutreil and the Early Strategies of Heritage Planning
Farm transfers (including agricultural real estate held through GAEC or EARL corporate structures) are exempt from Dutreil Pacte's 75% inheritance and gift tax. Specific operational notes:
• Shares of agricultural businesses must meet the requirements of a “collective lock-up commitment” for a period of at least two years.
• Any cancellation promise made by the heirs at the time of death will void the Dutreil exemption.
Following the 2026 budget revision, the scope of Dutreil Pacte will be narrowed, with non-specialized assets explicitly excluded from the exemption; therefore, only properties used purely for agricultural operations will be eligible for the tax exemption.
Recommendation: Consolidate farmland assets through the French agricultural company system (GAEC, EARL, SCEA), utilize Dutreil Pacte to safeguard family succession, and avoid directly owning detached houses on land that is not sufficiently associated with the land.
VI. Establish a professional team
• Notary: Mandator appointed by French law, serving as the official executor of transaction settlement and property registration.
• French agricultural law specialist (Avocat en droit rural): Assists with SAFER decision-making, Fermage analysis, and Cap agricultural subsidies.
• Rental Management Consultant: Determines market rental prices and annual rental renewals for the property.
• English-speaking agricultural brokers: familiar with communicating with overseas buyers, Chambre d'Agriculture, and SAFER.
• RICS Chartered Surveyor: Completes land yield assessments and tracks building structural issues.
• Tax Advisor (Expert-comptable): Performs Dutreil Pacte filing, handles annual Taxe Foncière and non-resident IRNR filing.
VII. Requirements for Advance Payment of Bank Loans
For loans to purchase farms from non-residents, banks such as Crédit Agricole and Banque Populaire typically require:
• Down payment for 30%–40%, LTV up to 50%–70%.
• Income: You need to submit proof of income and balance sheet for at least 2 years.
• A Cap agricultural subsidy application plan must be attached when applying for a business loan.
• By 2025, the EIB and BPCE banking sector will mobilize €200 million to provide credit to agricultural SMEs (including young farmers), with the overall interest rate target for borrowers reduced to a more reasonable level, potentially covering foreign applicants.
Process of purchasing a French farm
French farm transactions follow a two-stage, notary-led system: "Compromis de Vente (10-day cooling-off period) → Acte Authentique (transfer of ownership)". The additional SAFER (pre-sale permit) stage (2 months) for farmland occurs after the pre-sale contract. The overall process is 1 to 3 months longer than for residential properties.
Phase 1: Preliminary Planning and Budget Review (4–8 weeks)
• Determine the overall budget, including the purchase price, notary fees (approximately 7%–8%), land remediation costs, and annual ongoing operating cash flow;
• Obtain a Nota Simple (summary of information on the title deed) from a notary public to verify existing agricultural lease relationships and SAFER intervention eligibility;
• Adjusting French tax optimization: Comparison and selection of French corporate and individual farmland ownership structures (SCI/SCEA/GAEC);
• Obtain a commitment signed by a non-resident tax representative;
• Obtain a French bank account and prepare proof of the source of funds.
Phase Two: Searching for Farms, Conducting Site Visits, and Expressing Interest (2–8 months)
Find farms by combining data from the French Agricultural Land Registry (www.terres-d-ici.com) and the agencies recommended by Chambre d'Agriculture.
• Due to the limited supply of high-quality farms, the flow of French farms is usually completed through SAFER or private intermediaries in the non-public market;
• When submitting a written offer, the buyer's attorney should include pre-conditions such as "Due Diligence: Lease Review, SAFER Approval Conditions".
Phase Three: Signing the Pre-sale Contract (Compromis de Vente)
• The final price and transaction date are agreed upon by both parties through a notary public and are written into the contract terms.
• The buyer pays a deposit of 5%–10%, which is held in escrow by a notary public.
• 10-day legal cooling-off period: The buyer may withdraw unconditionally within this period and the deposit will be fully refunded.
• The buyer submits the materials to the local Chambre d'Agriculture and waits for SAFER's review window two months after the endorsement and filing.
During this period, SAFER will assess whether the buyer's purchase aligns with local agricultural development plans and SAFER's regional objectives. If SAFER decides to exercise its right of first refusal, it will directly purchase the land at the same price as the buyer and, in principle, resell the land to local farmers or agricultural groups.
Phase Four: Agricultural Business Qualification Verification (If acting as a business operator)
• EU citizens can apply to the regional government for installation authorization after completing the control of structures.
Non-EU citizens who plan to operate a farm themselves rather than simply as landowners must obtain additional authorizations {including agricultural training qualifications and residence permits}.
Phase 5: Formal signing of the final sales contract (Acte Authentique de Vente)
The final contract is signed in the notary's office. The notary will read the contract aloud in public and verify the seller's identity.
• The buyer pays the outstanding balance (minus the deposit already paid). The notary public withholds and pays taxes and registration fees of 7%–8% on behalf of the buyer.
• Upon signing, ownership is legally transferred to the buyer.
• The notary submits the registration to the land registry office (Service de la Publicité Foncière).
Phase Six: Registration at the Land Registry and Handover of Keys
• Substantive registration typically takes 1 to 3 months to complete. For farmland that includes buildings, ownership registration needs to be confirmed at the local cadastral office.
• On the completion date (the day the Acte Authentique is signed), the seller hands over the keys and the right of vacancy to the buyer.
Overall Time Frame
Estimated time for each stage
Financial preparation + professional team + bank account (4-8 weeks)
Farm search + on-site inspection + quote 2–8 months (limited farm supply)
Sign Compromis + 10-day cooling-off period (1–2 weeks)
SAFER priority purchase window (2 months) 8 weeks
Agricultural business qualification review (if required): 4–12 weeks (operator only)
Formal signing of Acte Authentique takes 1–2 weeks
Land Registry Registration: 4–12 weeks
The normal process, from initial bid to final title acquisition, takes approximately 5–9 months. The SAFER approval window and agricultural eligibility review can extend this timeframe by weeks to months.
I. Clarify the type of investment project and expected return.
Investment type, area/price range, main sources of return, management involvement
Bare land investment (with or without lease) 10–100 hectares, from €52,200. Low rental income + land appreciation (tenant farmers).
Fully operated farms: 50–200 hectares, €500k–€3M. CAP subsidy + operating income + high/medium value-added (requires professional skills).
Mixed-use estate (farmland + residential) €300k–€1.5M Lifestyle + land value + low to medium rent
Farmhouse in need of repair + farmland €150k–€500k (additional fee required for renovation) Price difference between renovation and transaction price + higher for short-term rentals/tourism (requires developer-level management)
For pure capital allocators: farmland with leases is preferred, offering stable bond-like returns (approximately 2%–4%), is not hindered by SAFER approval, and is priced at a discount of 18% compared to freely leased land.
II. Budget Structure
Recommendation on the proportion of the project cost to the purchase price
Farm purchase price (including agent commission): 65%–75%
Notary fees + one-time transaction fees (including tax) amounting to 7%–8% of the purchase price.
Farmland/building maintenance, repair and emergency repair purchase price 15%–35%
Annual holding reserves (including property tax, insurance, and landscaping) = 1%–2%/year of the purchase price
III. Advance Planning for SAFER Application
Before signing the pre-sale contract (Compromis de Vente), non-EU resident applicants should submit a complete agricultural operation plan (Plan d'Exploitation) for the farmland transaction, negotiated with a notary or through the legally designated SAFER district. Refer to the French Ministry of Agriculture website (www.safer.fr) for the conditions of each SAFER district. If the buyer's purchase motive is deemed speculative, they are likely to be subject to priority purchase. It is recommended to consult the French Chamber of Agriculture (Chambre d'Agriculture) to assess the probability of a successful application.
It is recommended to include a clause in the initial purchase contract stating that "SAFER will receive a full refund of the deposit if he exercises his right of first refusal."
IV. Realistic Understanding of Fermage (Agricultural Leasing) and Adjustment of Rental Returns
If the farm you are purchasing already has a fermage, you will need to:
• The lawyer reviews the type of existing lease: a 9-year standard lease, an 18-year medium-term lease, or a 25-year long-term lease.
• Calculate rental yield: Annual adjustments are made based on the rental index determined by provincial order.
• Consider whether to reclaim self-cultivated land upon contract expiration or renew contracts with existing tenants.
• Add biodiversity conservation and soil restoration clauses to environmental leases to leverage CAP ecological program subsidies.
V. Pacte Dutreil and the Early Strategies of Heritage Planning
Farm transfers (including agricultural real estate held through GAEC or EARL corporate structures) are exempt from Dutreil Pacte's 75% inheritance and gift tax. Specific operational notes:
• Shares of agricultural businesses must meet the requirements of a “collective lock-up commitment” for a period of at least two years.
• Any cancellation promise made by the heirs at the time of death will void the Dutreil exemption.
Following the 2026 budget revision, the scope of Dutreil Pacte will be narrowed, with non-specialized assets explicitly excluded from the exemption; therefore, only properties used purely for agricultural operations will be eligible for the tax exemption.
Recommendation: Consolidate farmland assets through the French agricultural company system (GAEC, EARL, SCEA), utilize Dutreil Pacte to safeguard family succession, and avoid directly owning detached houses on land that is not sufficiently associated with the land.
VI. Establish a professional team
• Notary: Mandator appointed by French law, serving as the official executor of transaction settlement and property registration.
• French agricultural law specialist (Avocat en droit rural): Assists with SAFER decision-making, Fermage analysis, and Cap agricultural subsidies.
• Rental Management Consultant: Determines market rental prices and annual rental renewals for the property.
• English-speaking agricultural brokers: familiar with communicating with overseas buyers, Chambre d'Agriculture, and SAFER.
• RICS Chartered Surveyor: Completes land yield assessments and tracks building structural issues.
• Tax Advisor (Expert-comptable): Performs Dutreil Pacte filing, handles annual Taxe Foncière and non-resident IRNR filing.
VII. Requirements for Advance Payment of Bank Loans
For loans to purchase farms from non-residents, banks such as Crédit Agricole and Banque Populaire typically require:
• Down payment for 30%–40%, LTV up to 50%–70%.
• Income: You need to submit proof of income and balance sheet for at least 2 years.
• A Cap agricultural subsidy application plan must be attached when applying for a business loan.
• By 2025, the EIB and BPCE banking sector will mobilize €200 million to provide credit to agricultural SMEs (including young farmers), with the overall interest rate target for borrowers reduced to a more reasonable level, potentially covering foreign applicants.
Process of purchasing a French farm
French farm transactions follow a two-stage, notary-led system: "Compromis de Vente (10-day cooling-off period) → Acte Authentique (transfer of ownership)". The additional SAFER (pre-sale permit) stage (2 months) for farmland occurs after the pre-sale contract. The overall process is 1 to 3 months longer than for residential properties.
Phase 1: Preliminary Planning and Budget Review (4–8 weeks)
• Determine the overall budget, including the purchase price, notary fees (approximately 7%–8%), land remediation costs, and annual ongoing operating cash flow;
• Obtain a Nota Simple (summary of information on the title deed) from a notary public to verify existing agricultural lease relationships and SAFER intervention eligibility;
• Adjusting French tax optimization: Comparison and selection of French corporate and individual farmland ownership structures (SCI/SCEA/GAEC);
• Obtain a commitment signed by a non-resident tax representative;
• Obtain a French bank account and prepare proof of the source of funds.
Phase Two: Searching for Farms, Conducting Site Visits, and Expressing Interest (2–8 months)
Find farms by combining data from the French Agricultural Land Registry (www.terres-d-ici.com) and the agencies recommended by Chambre d'Agriculture.
• Due to the limited supply of high-quality farms, the flow of French farms is usually completed through SAFER or private intermediaries in the non-public market;
• When submitting a written offer, the buyer's attorney should include pre-conditions such as "Due Diligence: Lease Review, SAFER Approval Conditions".
Phase Three: Signing the Pre-sale Contract (Compromis de Vente)
• The final price and transaction date are agreed upon by both parties through a notary public and are written into the contract terms.
• The buyer pays a deposit of 5%–10%, which is held in escrow by a notary public.
• 10-day legal cooling-off period: The buyer may withdraw unconditionally within this period and the deposit will be fully refunded.
• The buyer submits the materials to the local Chambre d'Agriculture and waits for SAFER's review window two months after the endorsement and filing.
During this period, SAFER will assess whether the buyer's purchase aligns with local agricultural development plans and SAFER's regional objectives. If SAFER decides to exercise its right of first refusal, it will directly purchase the land at the same price as the buyer and, in principle, resell the land to local farmers or agricultural groups.
Phase Four: Agricultural Business Qualification Verification (If acting as a business operator)
• EU citizens can apply to the regional government for installation authorization after completing the control of structures.
Non-EU citizens who plan to operate a farm themselves rather than simply as landowners must obtain additional authorizations {including agricultural training qualifications and residence permits}.
Phase 5: Formal signing of the final sales contract (Acte Authentique de Vente)
The final contract is signed in the notary's office. The notary will read the contract aloud in public and verify the seller's identity.
• The buyer pays the outstanding balance (minus the deposit already paid). The notary public withholds and pays taxes and registration fees of 7%–8% on behalf of the buyer.
• Upon signing, ownership is legally transferred to the buyer.
• The notary submits the registration to the land registry office (Service de la Publicité Foncière).
Phase Six: Registration at the Land Registry and Handover of Keys
• Substantive registration typically takes 1 to 3 months to complete. For farmland that includes buildings, ownership registration needs to be confirmed at the local cadastral office.
• On the completion date (the day the Acte Authentique is signed), the seller hands over the keys and the right of vacancy to the buyer.
Overall Time Frame
Estimated time for each stage
Financial preparation + professional team + bank account (4-8 weeks)
Farm search + on-site inspection + quote 2–8 months (limited farm supply)
Sign Compromis + 10-day cooling-off period (1–2 weeks)
SAFER priority purchase window (2 months) 8 weeks
Agricultural business qualification review (if required): 4–12 weeks (operator only)
Formal signing of Acte Authentique takes 1–2 weeks
Land Registry Registration: 4–12 weeks
The normal process, from initial bid to final title acquisition, takes approximately 5–9 months. The SAFER approval window and agricultural eligibility review can extend this timeframe by weeks to months.