Non-resident borrower
An individual whose tax residence is outside France and who wishes to purchase a property in France. Non-resident financing is considered a complex file: few banks offer it, conditions are more restrictive (lower LTV, higher required down payment), and foreign income is subject to stricter assessment. A broker specialising in this segment can leverage their expertise with an expatriate clientele.
Key points
- Very few French banks offer products specifically tailored to non-resident borrowers.
- The required down payment is often higher than for residents, with a lower LTV ceiling.
- Foreign income is subject to in-depth review and may be subject to a haircut.
- A broker specialising in this segment can command a premium with expatriate clients.
Frequently asked questions
What additional conditions does a bank impose on a non-resident borrower?
In addition to a larger down payment, the bank typically requires French bank account domiciliation, translated and apostilled income documents, and sometimes a mortgage guarantee rather than a surety. It may also require the property to be rented out to justify the financing on French soil.
How does a broker help a non-resident borrower build their file?
The broker maps upfront which banks accept this profile, translates documentary requirements into a clear checklist, and adapts the deal structure (contribution, LTV, guarantee type) to the targeted lender's constraints. Their role is critical because incorrectly targeting banks leads to successive rejections that undermine the file's credibility.
What is the difference between a non-resident borrower and a cross-border worker?
The cross-border worker lives and is tax-resident in France but works in a neighbouring country. The non-resident, on the other hand, is neither domiciled nor declared in France, and their income and taxation fall entirely under another country's jurisdiction. Although both profiles are atypical, the non-resident is generally considered more complex to finance.
In practice
A French expatriate living in Dubai wishes to buy a Paris apartment for €400,000. The selected bank requires a 30% down payment, a 70% LTV cap, and a conventional mortgage in place of a Crédit Logement surety.
Official sources
- How to determine your tax domicile? · Service-Public.gouv.fr
- Am I a non-resident for tax purposes? · impots.gouv.fr
- Obtaining a mortgage loan · Service-Public.gouv.fr