Purchasing property in France is an exciting step, whether it’s a holiday home, retirement retreat, or investment. One practical consideration that often arises is banking: do you need a French current account (compte courant) when buying property? If so, when should it be opened, with which bank, and at what cost?

This guide answers those questions and helps you navigate the French banking system with confidence.

A Note on French Banking: The RIB, Direct Debits, and Wire Transfers

Before diving in, it’s helpful to understand a few key elements of the French banking system. Each account is linked to a Relevé d’Identité Bancaire (RIB), a document that contains all the necessary information for bank transfers and direct debits. You can think of it as the French equivalent of your account and routing numbers. You will need your RIB to receive payments, and others will use their RIB to pay you.

When paying recurring bills like for utilities or taxes, the most common method is a direct debit mandate (mandat SEPA). This is a one-time authorization you provide to a company, allowing them to automatically pull the due amount directly from your account each billing period. This system is efficient but requires you to have a French bank account from which these direct debits can be made.

For one-off payments, such as a deposit to a landlord or a large sum to the notaire, you will use a wire transfer (virement). These can be initiated online, via your bank’s app, or at a branch. Domestic wire transfers within the SEPA (Single Euro Payments Area) are typically free and very fast.

Do You Need a French Current Account to Buy Property?

While not a legal requirement, opening a euro-denominated current account in France is highly recommended. The notaires (the French officials who handle property transactions) can accept funds from abroad, but a local account simplifies the process immensely.

Here’s why a French account is a practical necessity:

• Smooth Property Transactions: Having a local account allows you to receive mortgage funds and pay notaire fees without currency exchange delays or international transfer complexities.
• Essential for Bill Management: Utility companies and tax authorities in France heavily rely on the direct debit (prélèvement) system for payments. Without a local account, managing these essential recurring bills would be difficult and cumbersome.
• Cost and Convenience: A French account reduces the need for frequent, costly international transfers, providing greater transparency and ease of management for all your property-related finances.

In short, while technically optional, a French bank account is the simplest and most efficient way to manage your property ownership.

When Should You Open the Account?

The ideal time to open your account is before the property purchase is completed. This proactive approach ensures you are prepared to:

• Receive mortgage disbursements.
• Promptly pay deposits, notaire fees, and other associated costs.
• Set up utilities and insurance in advance of moving in.

Should You Open the Account With Your Lender?

If you are taking out a mortgage, French banks will always require you to open an account with them as a condition of the loan. All mortgage payments will be debited from this account. This arrangement can be convenient as it centralizes your mortgage and daily banking, reducing administrative friction.

What Does It Cost to Operate a Current Account in France?

Banking in France is not free, but fees are generally transparent. Here is an overview of typical costs:

• Account Maintenance Fees: Expect to pay around €10–€30 per year at traditional banks. Many online banks offer free accounts.
• Monthly Subscription: This can range from €2–€5 per month (€24–€60 per year) and often includes a package of services like a debit card and insurance.
• Debit Card Fees: A standard Carte Bancaire (CB) typically costs around €40–€50 per year.
• Transfers and Withdrawals: Domestic SEPA transfers are usually free. ATM withdrawals are free at your bank’s machines but can incur a small fee (up to €2) at others.
• Incident Charges: Failed transfers or direct debits may result in a capped fee, typically around €20 per incident.

Practical Tips for Property Buyers

• Open your account early: Ideally, as soon as you have agreed to buy the property.
• Expect your lender to require an account: Factor this into your decision when choosing a mortgage provider.
• Review all fees: Don’t just look at maintenance fees; check for card costs, transfer charges, and penalties.
• Ask about English-language support if you are not comfortable speaking French.