These results signify an increase of three billion euros between 2020 and last year.
Revenue from notary fees reached a record level in 2021, at 16.2 billion euros. According to the National Federation of Public Works (FNTP), these results sign an increase of three billion euros between 2020 and last year. Over the period between 2013 and 2021, this is equivalent to an average annual increase of 11%.
Behind these 16.2 billion euros hide transfer duties for valuable consideration (DMTO). These are taxes paid to local authorities in addition to the tax collected by the State. These DMTOs therefore constitute the major part of the notary fees. For real estate purchases in the old, they represent 8% of the price of the property. And of this percentage, 80% goes to the State, to the municipalities, but above all to the departments.
The big winners are Yonne, Cantal and Le Lot
“The weight of DMTOs in the operating revenue of the departments is increasing and is approaching the most important revenue, the fraction of VAT (which since 2021 has replaced the Tax on built land)indicates the FNTP. By way of comparison, the Real Estate Wealth Tax which replaces theISF only brought in the state last year 1.5 billion euros…Among the departments where DMTOs increased the most last year are Yonne (+47%), Cantal (+45%) and Le Lot (+44%). By way of comparison, Paris saw its DMTO increase by only 9%.
This general revenue growth is linked to the explosion of the post-lockdown real estate market. The more sales there are, the more notary fees accrue to the state coffers. In 2021, these transfer duties jumped thanks to 1.178 million transactions, according to notaries, as well as prices up 7% on average.
However, the FNTP warns of a turnaround in the real estate market: “Factors to be monitored such as the evolution of interest rates and borrowing conditions. A settling, or even a reversal, linked to these factors or other unforeseen elements cannot therefore be ruled out. However, the growing weight of economic revenue (transfer tax, fraction of VAT replacing tax on built land) in departmental finances thus makes the latter less predictable and more sensitive to an economic downturn.»