5 Things To Consider When Buying Commercial Property in France
If you're looking to buy commercial property in France, we are here to help! Whether you're hoping to purchase your first commercial property or want to grow your current development further, there are a few things you might want to consider.
At France Tax Law, we are experts in France property law. This is why we have put together the top 5 things you need to consider when buying commercial property in France, and this includes all the advice, tips and information you need before you go any further.
What is commercial property?
Before we dive into things to consider, let's define a commercial property for a clear starting point.
It's actually quite simple, and when we talk about a commercial property, we are talking about real estate used for business purposes. Any building that houses a business or even lands used to generate a profit is classed as a commercial property.
What to consider when buying French commercial property
Luckily, the process of purchasing commercial premises in France is more or less the same as buying private property and is relatively straightforward. But, before you dive into the process of purchasing a commercial property in France, make sure you have considered every aspect of the transaction.
To help you, we have put together the top 5 things you need to consider before purchasing commercial property in France here.
1. Funding
If you are considering purchasing commercial property in France, you will most likely already have the funding available or planned. However, there are still other funding aspects that are important to note.
For example, you should be aware that you can apply for a mortgage of up to 80% on a commercial property, but you must fund your business entirely yourself. If you had not been aware of this previously or were viewing the commercial property and business funding as the same source, you may need to take some time to re-calculate your finances.
2. Viability
Viability Suppose you have a fantastic business idea you think will be a sure success. You have done your research, and customer engagement is high, but have you gotten feedback from your French customer? Before buying any commercial property, ensure your business idea is viable for the planned location. You should also be confident that you have or can acquire the skills to ensure the business will work.
3. Taking Over Property
If you are taking over an existing business in a commercial property, there are other considerations you need to take into account. For example, did you know that French labour laws require that new owners respect existing employees' contracts?
Make sure you're well aware of any laws, requirements, and expectations regarding taking over a property and business before you make any agreements.
4. Equipment and Stock
Another thing to factor into the cost and research elements of your search for commercial property in France is equipment and stock. Just as you have to provide all funding for your business yourself separate from the property mortgage, you must also ensure you have sourced the appropriate equipment and stock needed for your business to thrive.
Some commercial properties will sell equipment and furniture at a separate, additional cost from the property for you to purchase, and it will rarely ever be included in the price.
5. Research
When it comes to buying property of any kind in France, buyers tend to wear (very thick) rose-tinted glasses when considering properties. The excitement and beauty of France can cloud our judgement, and many buyers don't look into the pros and cons of a property until after a sale has been finalised.
So, before you go any further with a commercial property you're viewing, make sure you research every possible aspect. Sellers are only interested in a deal that benefits themselves and will not be interested in whether or not you can achieve success with your business.
Seeking Advice on Commercial Properties in France
We hope that our guide to the top 5 things you should consider before buying commercial property in France has given you insight into making your final decision. However, you should never enter discussion talks with a seller until you have received expert legal and professional advice.
That's where we come in!
At France Tax Law, we have a friendly and professional team on hand to assist you with all things France property law. We can give expert advice and help you with your French property transaction. Simply get in touch with us on 020 8115 7914 to find out more.