Non-standard profiles
Expat or non-resident mortgage: borrowing in France from abroad
Tax residence, down payment, foreign-currency income, banks that accommodate, remote signing: what makes a non-resident application financeable in France.
Yes, an expatriate or a non-resident can borrow in France to purchase property there: no rule prohibits it. The application hinges on tax residence, the currency of income (converted and then discounted), the traceable source of funds provided, and remote signing. The required down payment exceeds that of a resident, the loan remains almost always in euros, and statutory deadlines cannot be shortened.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- A non-resident can borrow in France: what changes is the risk policy and the number of documents to provide, not solvency.
- Treatment depends on tax residence, not nationality: two profiles established abroad are viewed in the same way.
- The required down payment exceeds that of a resident, but it is the source of funds, traced by admissible documents, that blocks the most applications.
- Income received in a foreign currency is converted and then discounted to cover exchange risk, which reduces the stated borrowing capacity.
- For a purchase in France, the loan remains almost always in euros: the law reserves foreign-currency lending to those with a real link to that currency.
- The cooling-off period on the loan offer can never be shortened, regardless of the country from which the acceptance is sent.
Yes, an expatriate or a non-resident can finance a purchase in France with a French loan. Four points are decisive: tax residence, currency of income, source of funds, and remote signing. See also atypical profiles.
Can a non-resident borrow in France?
Yes, no rule prohibits it. The file is simply more documented.
Nationality does not matter. What matters:
- Tax residence: the structuring criterion.
- Employment status: an employee on secondment has an almost ordinary file; a local contract paid in foreign currency is a true non-resident file.
- The currency of your income.
What down payment do banks require from a non-resident?
Significantly more than a resident, at least the acquisition costs. The level depends on the bank, the country, and the property.
See personal contribution. What blocks the most: source of funds. Prepare it before looking for a property:
- sale deeds;
- foreign tax notices;
- contracts;
- bank certificates;
- donation deeds.
How are income earned in a foreign currency treated?
Converted into euros at a prudent rate, then discounted for exchange risk. Your displayed capacity decreases accordingly.
The discount depends on the volatility, the anchoring to the euro, and the liquidity of the currency.
A loan in euros, almost always
Un prêt libellé dans une devise autre que l’euro n’est ouvert qu’à l’emprunteur qui déclare percevoir principalement ses revenus ou détenir un patrimoine dans cette devise au moment de la signature du contrat — sauf si le risque de change n’est pas supporté par lui. Le prêteur doit informer l’emprunteur des risques du contrat et des possibilités de conversion des remboursements en euros au plus tard à l’émission de l’offre de prêt.
Texte du code de la consommation, affiché avec sa date d'effet et sa source. Il conditionne la souscription d'un prêt en devise à la situation de l'emprunteur au regard de cette devise.
- En vigueur depuis le
- Source
- Article L. 313-64 du code de la consommation — Légifrance
A loan in foreign currency requires a real link with that currency. The exchange risk therefore remains on your income, not on your debt.
Employees paid in Swiss francs
The common case on the Lyon–Geneva axis. Please prepare:
- a copy of your frontier worker permit;
- your taxation, in accordance with the Franco-Swiss agreement and the canton;
- your thirteenth month's salary and bonuses over several years;
- a bank close to the border, experienced with this profile.
Are you a frontier worker residing in France? You are a French tax resident with foreign income: please present yourself as such.
Does the country of residence affect feasibility?
Considerably: the lender must verify your income and be able to act in the event of default.
- an agreement with France;
- a convertible and stable currency;
- no international restrictions;
- legible supporting documents, translated if necessary.
Which banks actually finance non-residents?
Few, and through dedicated services, with longer processing times.
Target them from the outset: specialist lenders. In the preliminary sale agreement, please provide for a longer suspensive condition and open a bank account in France early.
Borrower insurance: remaining covered outside France
Please read the clauses before the price: medical examinations abroad, country exclusions, claims outside France.
- Territoriality: are you covered while residing abroad?
- Zone exclusions, including travel.
- Medical formalities at a distance.
- Loss of employment, almost always inoperative outside France: do not pay for it for nothing.
To read: the information sheet, the exclusions, comparing by the TAEA, the insurance refusal.
How does a remote application proceed?
Almost entirely: video call, online documents, remote acceptance, deed by power of attorney. The statutory deadlines do not change.
The cooling-off period cannot be shortened
- Délai de réflexion de l'emprunteur 10 jours
- Maintien minimal des conditions de l'offre 30 jours
Ce délai est d'ordre public. Une acceptation donnée avant son terme n'est pas valable, quel que soit le pays depuis lequel elle est envoyée.
- En vigueur depuis le
- Source
- Article L. 313-34 du code de la consommation — Légifrance
It begins upon receipt of the loan offer: an international dispatch delays the calendar.
Power of attorney and notarial deed
- the authentic power of attorney, before a local notary, with apostille or legalisation: the usual route, to be initiated early;
- the electronic appearance, if the notary’s office offers it.
Notify the notary as soon as the preliminary sale agreement is signed. Guidance on notaires.fr.
No fees before the funds
Any “application fees” to be transferred before any agreement? A warning sign. Verify the registration in the register of intermediaries.
Future main residence, secondary home or rental property: what changes
A future main residence is the easiest to finance, a secondary home is less straightforward, and a rental property requires separate consideration.
Is a return to France planned? Document it with a mission end date. For renting: rental financing, financing through a civil company.
- 1° assimiler les mensualités de remboursement à des loyers, ou faire référence pour le calcul des échéances à des prestations sociales non assurées pendant toute la durée du contrat
- 2° faire figurer toute formulation susceptible de faire naître chez le consommateur de fausses attentes concernant la disponibilité ou le coût d’un crédit
Un loyer perçu ne rembourse pas mécaniquement une échéance : vacance locative, charges, travaux et fiscalité s'intercalent entre les deux.
- En vigueur depuis le
- Source
- Article L. 313-5 du code de la consommation — Légifrance
Financing first, the property second
Validate three points before you begin your search:
- your tax residence and your employment status;
- your currency capacity, discounted;
- the traceability of your down payment.
Then calculate the instalment using the instalment formula.
Are you preparing a purchase from abroad? Create your file or have your file reviewed by telephone.
Sources
Read next
- Mortgage in Lyon: frequently asked questions
- Down payment for a mortgage: how much is actually required, and how to prove it No minimum down payment threshold is imposed: what the down payment actually covers, what counts as a down payment, and how to prove its origin to the bank.
- Financing a rental investment in Lyon: what the bank actually looks at Financing a rental investment in Lyon: the rent the bank takes into account, the expected down payment, the mode of operation and the structure that holds up.
- Mortgage insurance refused or surcharged: the AERAS agreement, appeals and solutions Refusal, exclusion or surcharge: the three levels of AERAS review, the capping mechanism, appeals, and the realistic alternatives when nothing works out.
- Financing a purchase through an SCI, under IR or IS: what the bank truly requires Mortgage through an SCI: partners’ joint guarantee, debt-to-income ratio, current-account contribution, security. What secures the deal, under IR or IS.
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