{"id":6904,"date":"2026-10-23T14:00:36","date_gmt":"2026-10-23T12:00:36","guid":{"rendered":"https:\/\/balmontconseil.com\/blog\/credit-immobilier-en-cours-quitter-la-france-location-assurance-remboursement\/"},"modified":"2026-10-23T14:00:36","modified_gmt":"2026-10-23T12:00:36","slug":"credit-immobilier-en-cours-quitter-la-france-location-assurance-remboursement","status":"publish","type":"post","link":"https:\/\/balmontconseil.com\/en\/blog\/credit-immobilier-en-cours-quitter-la-france-location-assurance-remboursement\/","title":{"rendered":"Mortgage loan in progress: what happens when you leave France?"},"content":{"rendered":"
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In summary\u2026<\/h2>\n

The bank may require immediate repayment in certain cases, as outlined in your loan agreement, which you should review before leaving. Regarding the loan itself, what changes upon leaving includes: permitted uses of the property, borrower's insurance, taxes if you rent it out, and the cost of early termination.<\/p>\n

Our position: decide between keeping, renting or selling based on three figures that you can calculate yourself before leaving, and write to the bank before renting, never after.<\/p>\n<\/div>\n

\u00abI\u2019m leaving in March for three years, and I still have \u20ac200,000 to pay back. Should I rent, sell, or pay back the loan?\u00bb This is a typical situation for a Lyon-based executive being transferred abroad. All three options are possible, but they have different costs and tax implications, and renting before selling closes an avenue that no one seems to consider.<\/p>\n

1. The "residence clause": look for it in your loan offer<\/strong><\/h2>\n

Before renting, reread the purpose of the loan and the conditions of repayment.<\/strong><\/h3>\n

The loan offer must specify the nature, purpose, and terms of the loan (DGCCRF, Directorate General for Competition Policy, Consumer Affairs and Fraud Control). The constraint lies there, and in the cases of early repayment stipulated in the contract. Reread two passages: what the loan finances (primary residence, secondary residence, rental property) and the circumstances under which the bank can demand immediate repayment.<\/p>\n

For subsidized loans (zero-interest loans, conventional loans, social access loans), the rule is clear: the property must be occupied for at least eight months per year. A distance from the place of work is tolerated for a maximum of three years. For loans obtained since 2016, renting the property within six years of disbursement is only permitted in limited circumstances (professional relocation of at least 50 km or a 1.5-hour commute, retirement within six years, divorce, disability, unemployment of more than one year), for a maximum of six years, unfurnished, and subject to rent and tenant income limits. The bank must be informed.<\/p>\n

Specifically.<\/strong> Write to the bank before renting, describing the departure and the planned duration, and keep their written response.<\/p>\n

For the technician.<\/strong> Subsidized loans: Articles L. 31-10-6 and D. 31-10-6 to D. 31-10-7 of the French Building and Housing Code. Acceleration of the loan: The Court of Cassation (First Civil Chamber, March 22, 2023, No. 21-16.476) ruled abusive the clause that allows for the immediate demand for full payment in the event of default on an installment, imposed without formal notice or reasonable advance warning; this decision does not cite departure abroad as a cause for immediate acceleration.<\/p>\n

2. Borrower's insurance: change it at any time, review it for use abroad<\/strong><\/h2>\n

Since September 1, 2022, all borrowers can change their loan insurance at any time, without cancellation fees. The new contract must offer equivalent coverage to that required by the bank (death, loss of autonomy, disability), as listed in the personalized information sheet provided upon signing. The bank has the option to ten days<\/b> Once the complete application is received, a response can only be refused for a legitimate, justified reason. The request can be submitted by letter or via the remote channel used for registration, which is useful if you are located far away.<\/p>\n

Before leaving, read the information leaflet: all the clauses must be included. Look for anything related to your country of residence, exclusions, and what to report in case of a change in circumstances. If it's silent on this point, contact the insurer in writing.<\/p>\n

For the technician.<\/strong> Law No. 2022-270 of February 28, 2022; Article L. 313-30 of the Consumer Code; Article L. 113-14 of the Insurance Code.<\/p>\n

3. Renting out the property from abroad: what the tax costs are<\/strong><\/h2>\n

A non-resident is taxed in France on rental income from a property located in France. Their tax cannot be less than a minimum rate: 20% up to \u20ac29,579 of 2025 income, and 30% above that. They can opt for the average rate (calculated on their worldwide income) when it is more advantageous. In addition, for unfurnished rentals, social security contributions of 17.2% are levied, reduced to a single solidarity levy of 7.5% for individuals affiliated with a social security scheme in the European Economic Area or Switzerland, according to the general rule indicated by Service-Public. Rents from furnished rentals not rented professionally are subject to 18.6% in social security contributions.<\/p>\n

Up to \u20ac15,000 in gross rental income, the micro-foncier regime automatically applies: a 30% allowance (%), with no deduction for interest. The actual regime, which is irrevocable for three years, allows for the deduction of loan interest, insurance, property tax, and other expenses.<\/p>\n

Numerical case: illustrative example, calculated using the rules in effect on 23\/10\/2026<\/strong><\/h3>\n

Situation.<\/strong> Family leaving Lyon for three years. Main residence purchased with a conventional loan (no subsidized loan), outstanding balance of \u20ac200,000 at an average rate of 3.00%. Anticipated rent: \u20ac1,100 per month, or \u20ac13,200 per year.<\/p>\n

Issue.<\/strong> Keep and rent, or sell and pay back the cost? And at what tax and financial cost?<\/p>\n

Strategy.<\/strong> Compare three figures: the maximum early repayment compensation in case of sale, the minimum tax in micro-property, the minimum tax in the actual regime.<\/p>\n

Result.<\/strong> Sale and full refund:<\/b> compensation capped at the lower of two limits: 6 months of interest on the capital repaid (\u20ac200,000 \u00d7 3.00 % \u00f7 2 = \u20ac3,000) and 3 % of the remaining capital due (\u20ac6,000), i.e. \u20ac3,000 maximum<\/b>. It falls to zero if the repayment follows the sale of the property and a change in the place of professional activity of the borrower or his spouse (the bank assesses the case). Rental under the micro-land regime:<\/b> Taxable income \u20ac13,200 \u00d7 70 % = \u20ac9,240; minimum tax 20 % = \u20ac1,848; social security contributions 17.2 % = \u20ac1,589; total \u20ac3,437<\/b> (\u20ac2,541 with the sole solidarity levy of 7.5 %, i.e. \u20ac693). Rental under the actual cost regime:<\/b> \u20ac13,200 \u2212 \u20ac8,000 charges = \u20ac5,200; 20 % = \u20ac1,040; 17.2 % = \u20ac894; total \u20ac1,934<\/b>.<\/p>\n

Hypotheses.<\/strong> rents of \u20ac13,200 per year with no other French income; assumed actual expenses: interest \u20ac6,000, property tax \u20ac1,200, owner's insurance \u20ac200, non-recoverable condominium fees \u20ac600; tax calculated at the minimum rate of 20 % only, excluding the option for the average rate; annual interest approximated by 3 % of the remaining capital due; illustrative example, calculated with the rules in force on 23\/10\/2026.<\/p>\n

Specifically.<\/strong> Renting isn't the only cost to consider: it can also jeopardize the capital gains tax exemption on your primary residence. For a non-resident, the exemption requires a sale. no later than December 31 of the year following departure<\/b>, and a property that has not been made available to a third party between the owner's departure and the sale. Even a short-term rental terminates this. Another possible exemption, subject to nationality and residency requirements, is capped at \u20ac150,000 of capital gains and limited to a single residence: see exemption for non-residents<\/a>.<\/p>\n

For the technician.<\/strong> Minimum tax rate and option for the average rate: Article 197 A of the French General Tax Code. Micro-property tax regime: Article 32 of the French General Tax Code. Capital gains exemption on the former principal residence of a non-resident: Article 244 bis A, I-1 of the French General Tax Code according to administrative doctrine (BOI-RFPI-PVINR-10-20); exemption capped at \u20ac150,000 of net capital gains: Article 150 U, II, 2\u00b0 of the French General Tax Code. Social security contributions: Article L. 136-6 of the French Social Security Code. See also the average rate<\/a>.<\/p>\n

4. Selling and repaying early: the legal limit<\/strong><\/h2>\n

The contract may prohibit partial repayments of 10% or less of the initial capital, except for the purpose of settling the loan. Penalties are capped at six months' interest on the repaid capital, not exceeding 3% of the remaining capital. No penalty is due when the repayment follows the sale of the property and one of the following events: a change in the borrower's or their spouse's place of employment, forced cessation of employment, or death. No official source consulted specifies whether expatriation falls under the first category: inform the bank, with supporting documentation, that the departure is due to a job transfer or a new position; the bank will assess the situation. With a variable-rate loan, compensatory interest may be added.<\/p>\n

Detail : early repayment penalties<\/a>. For insurance: Cancellation process and deadlines<\/a>.<\/p>\n

For the technician.<\/strong> Articles L. 313-47 to L. 313-49 and R. 313-25 of the Consumer Code.<\/p>\n\n\n\n\n\n\n\n
Option<\/th>\nFinancial cost<\/th>\nPoint of vigilance<\/th>\n<\/tr>\n<\/thead>\n
Keep and rent<\/td>\nFrench tax on rental income (minimum rate), social security contributions<\/td>\nInform the bank beforehand, check the insurance, loss of sale exemption<\/td>\n<\/tr>\n
Sell and refund<\/td>\nCompensation is capped, and zero in some cases.<\/td>\nSale before the end of the year following departure for exemption<\/td>\n<\/tr>\n
Keep without renting<\/td>\nProperty tax, charges, tax on possible second home<\/td>\nLoan maintained; usage must remain consistent with the offer.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Frequently asked questions<\/strong><\/h2>\n

Do I need to inform my bank that I am moving abroad?<\/strong><\/h3>\n

For a subsidized loan, you must inform the bank if you are renting. For a standard loan, the eligibility requirements and purpose of the loan are those stated in your offer, which you should review: write down any changes in use before making any changes and keep a copy of the agreement.<\/p>\n

How much can an early repayment cost?<\/strong><\/h3>\n

The lower of these two amounts will be: six months' interest on the repaid capital, or 3% of the remaining capital due. No compensation will be due if the repayment follows the sale of the property and a change of employment location for the borrower or their spouse, a forced cessation of employment, or death.<\/p>\n

Can I change my loan insurance from abroad?<\/strong><\/h3>\n

Yes, at any time since September 1, 2022, by letter or through the online subscription process. The bank has ten days from the date the complete application is received to respond and can only refuse for a legitimate reason.<\/p>\n

Our position<\/strong><\/h2>\n

The most costly departures are those where the property was rented before the offer was read, or sold after the exemption deadline. Three steps before moving: reread the loan terms and conditions, write to the bank, and calculate the costs of the three options as described above.<\/p>\n

Are you leaving with an existing mortgage?<\/b> We will work with you to calculate whether to keep, rent or sell, before the date that closes the door to exemption.<\/p>\n

Are you a notary, chartered accountant, lawyer, or fellow consultant?<\/b> And one of your clients is leaving France with an outstanding loan? We work together on the cost estimation and schedule: the client remains yours, we provide you with a comparison ready to present to them.<\/p>\n

Book an appointment<\/strong><\/h2>\n

The initial consultation is to establish your exact situation and determine if there is anything that can be done\u2014sometimes there is nothing, and we will say so as well. Thirty minutes, with no obligation.<\/p>\n

Book an exchange with Balmont Conseil<\/strong><\/a><\/p>\n

Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 23\/10\/2026.<\/p>\n

Official sources consulted<\/strong><\/h2>\n