What rules and exceptions apply to a mortgage in France for a foreign buyer in 2026?

In France, two rules apply to every borrower, resident or not: a debt-to-income ratio capped at 35% of net income, and a loan term capped at 25 years, under the French High Council for Financial Stability's decision of September 29, 2021 (HCSF, September 29, 2021). But these rules come with exceptions: banks get some wiggle room to exceed them for up to 20% of their quarterly loan volume, there's a 2-year grace period on loan term for certain pre-construction purchases, and tax treatment on resale can look very different depending on where you live.

Whether you're Scandinavian, North American, British, or a French expat living abroad, the real question isn't "Am I even allowed to borrow in France?" (you are, no exceptions based on nationality). It's "which rules work in my favor, and which ones work against me?" That's what we're breaking down here, with official sources to back it up.

Key points to remember

• The 35% debt-to-income ratio and the 25-year loan term apply the same way to residents and non-residents alike. There's no separate HCSF rule for foreign buyers.
• Banks can bend these rules for up to 20% of their quarterly loan volume, but at least 70% of that flexibility is reserved for primary residence buyers first, which makes it harder to access if you're financing a second home or a rental property from abroad.
• The real gap between a French buyer and a Scandinavian, American, or British buyer isn't in the lending rules themselves. It's in the down payment required, the tax bill on resale, and how easy it is to get a bank on board.

What are the two rules that apply to every borrower in France?

The HCSF’s decision of September 29, 2021, imposes two mandatory criteria on all French banks, regardless of the borrower’s nationality or country of residence: the debt-to-income ratio (monthly loan payments, including insurance, divided by net income) must not exceed 35%, and the loan term must not exceed 25 years (source: economie.gouv.fr).

Therefore, on paper, there are no separate banking rules for international residents: a Norwegian resident, a U.S. citizen, or a French expatriate living outside France is subject to exactly the same legal framework as a French resident. We explain how mortgage lending generally works in France in our comprehensive guide to mortgages in 2026.

Can a bank bend the 35% rule?

Since the HCSF's June 29, 2023 decision, banks can go beyond the debt-to-income and term limits for up to 20% of their quarterly loan production, letting them approve a file at 37% or even 40% debt-to-income without facing penalties (source: economie.gouv.fr).

Here's the catch before you count on it: at least 70% of that 20% allowance is reserved for primary residence buyers (30% of which goes to first-time buyers specifically), leaving only 30% freely available, or roughly 6% of total quarterly lending. A Scandinavian or North American buyer financing a second home or a rental investment falls into that narrow remaining slice, which limits your room to negotiate. An expat moving back to France to buy their primary residence, on the other hand, lands in the priority category.

Is there an exception to the 25-year maximum term?

Yes, for purchases where you take possession of the property later than when the loan is issued, most notably pre-construction (off-plan) purchases. The HCSF decision allows a 2-year deferred amortization period in these cases, bringing the effective term up to 27 years (source: economie.gouv.fr). Good to know if you're buying new construction rather than an existing property.

Does the usury rate cap apply to foreign buyers too?

Yes, regardless of nationality. This is the maximum legal annual percentage rate (APR), which is revised quarterly by the Banque de France. For loans granted on or after July 1, 2026, the caps are 4.07% for fixed-rate loans with terms of less than 10 years, 4.57% for terms between 10 and less than 20 years, and 5.29% for terms of 20 years or more (source: Banque de France, usury rate for Q3 2026). For reference, the average rate over 20 years was around 3.50% in July 2026, according to the Pretto Barometer, well below that cap. This cap protects the borrower, but should never be confused with a guaranteed interest rate: each application is negotiated on a case-by-case basis.

Do non-residents have to meet additional requirements?

The mandatory criteria are the same as for residents, but banks apply stricter requirements in practice: a down payment that's typically 30% of the purchase price (versus around 10% for a resident), a 15% to 25% haircut applied to foreign-currency income to cover exchange rate risk, and closer scrutiny given the lack of a usable French credit history. These criteria vary a lot from one bank to another depending on your country of residence, which is why some banks are noticeably more open than others to Scandinavian, North American, or British buyers. We cover this in more detail in our guide to buying in France as a non-resident and our page dedicated to international profiles.

Which tax exceptions change depending on where you live?

This is where the real differences show up, and they're tax-related, not banking-related. When you sell as a non-resident, you pay 19% tax on the capital gain, regardless of country of residence, plus social charges (CSG-CRDS) at a combined rate of 17.2%. But since January 1, 2019, anyone affiliated with the social security system of an EEA country (the European Union, Iceland, Norway, or Liechtenstein) or Switzerland is exempt from CSG-CRDS and only pays a 7.5% solidarity levy, roughly half the cost (source: impots.gouv.fr).

For higher net worth buyers: France's real estate wealth tax (IFI) only applies for non-residents on property located in France, above a net value threshold of 1.3 million as of January 1, on a sliding scale (source: economie.gouv.fr). Unlike it is for a French resident, assets held outside France don't count toward that calculation.

Does a Brit pay the same tax as an American on a property sale?

No, and this is a nuance that often gets missed, with specific conditions attached. Since Brexit (January 1st, 2021), a British resident can still access the CSG-CRDS exemption on real estate capital gains, but only if they're affiliated with UK social security, are a national or legal resident of France, the UK, or another EU member state, and aren't subject to mandatory French social security (source: BOI-RFPI-PVINR-20-20, bofip.impots.gouv.fr). Under those conditions, they only pay the 7.5% solidarity levy, same as a Scandinavian, EEA, or Swiss resident (source: service-public.gouv.fr). An American or Canadian resident, on the other hand, stays at the full 17.2% rate, since the US and Canada are neither in the EEA nor Switzerland.

On the other hand, Brexit did cost British sellers one advantage: the exemption capped at €150,000 of capital gain (Article 150 U of the French Tax Code) is reserved for nationals of an EU or EEA member state. No longer being an EU national, a British citizen is in principle no longer eligible, unlike an Irish or German resident would be. This distinction hinges on nationality, not just residence, and it's worth confirming with a tax advisor before you sell.

Do you need to be physically present in France to sign your mortgage or the deed of sale?

No, and this is a procedural exception that makes life much easier for international buyers. Since Decree No. 2020-1422 of November 20, 2020, a French notary can accept a notarized power of attorney remotely, via a secure video conferencing system, without the need for the parties to be physically present (source: notaires.fr). This eliminates the need to go through a consulate or a foreign notary and avoids apostille issues. In practice, a buyer from Scandinavia, North America, or the United Kingdom can complete the entire process (simulation, bank documentation, preliminary agreement, loan offer, deed of sale) from abroad, without ever having to travel to France before receiving the keys.

Why do some buyers face more bank refusals despite identical rules?

Because the lending rules (35%, 25 years) are the same for everyone, but banking access isn't. For American citizens, FATCA requires French banks to meet stricter reporting obligations to the IRS, which leads some banks to limit or refuse account openings for "US persons," without changing the HCSF rules that apply to their loan. For British buyers, several mortgage brokers have noticed tighter account-opening criteria since Brexit, especially for applicants with a recent residence permit. In both cases, it comes down to each bank's internal policy, not a legal exception, which makes choosing the right bank a make-or-break decision.

As many rules as there are exceptions: let's sort out yours

A French mortgage follows precise rules, but every profile (Scandinavian, North American, British, expat) also deals with its own set of exceptions: tax-related, banking-related, or procedural. At Opeongo Finance, we figure out exactly what applies to your situation, match you with the banks best suited to your profile, and help you put together a solid file. Every situation is different, so let's talk about yours, no strings attached.

Updated on July 13, 2026, by Paul Desjardins, mortgage broker specializing in international clients (ORIAS No. 25 010 121).

Paul Desjardins assists expatriate buyers, non-residents, and international investors with their real estate financing projects in France. More than 60% of his clients live abroad: he advises them in French and English, from the initial review of their application through to the signing at the notary’s office. He writes practical guides for Opeongo Finance aimed at international clients who want to understand the rules of French mortgage lending and secure financing from abroad.