Yes, foreigners can buy property in French Polynesia, but every purchase of land or property rights by a non-resident requires prior authorization from the local government before the sale can close. French Polynesia is an autonomous overseas collectivity of France with its own tax code, land rules, and investment regulations, so the process differs from what applies in metropolitan France. Some categories of land are effectively off limits, coastal building is tightly restricted, and French inheritance law will apply to whatever you own there.
The Prior Authorization You Cannot Skip
Real estate is treated as a strategic sector, which means any foreign buyer must submit an application to the General Directorate of Economic Affairs (DGAE), addressed to the President of French Polynesia, before closing. This applies to all foreign buyers regardless of nationality. Foreign investments in non-strategic sectors only need a declaration filed within three months after completion, but real estate always falls into the prior-authorization category.1Service Public French Polynesia. Investors Guide French Polynesia 2025
The review looks at your funding sources and the nature of the investment, and it typically adds weeks or months to the timeline. Start early. The notary cannot finalize the sale without the approval in hand.
Land That Is Effectively Off Limits
Three categories of land routinely block foreign buyers.
The biggest is customary land held in joint ownership, known as indivision. A significant share of land across the islands remains held collectively by extended Polynesian families, sometimes by dozens or hundreds of co-owners across generations. Selling requires the co-owners’ consent, and untangling these ownership claims is often impractical. Any property you consider should be verified as having clear, individual title.
Agricultural land carries restrictions that generally prevent foreign acquisition, reflecting a policy of keeping farmland in local hands. Environmentally protected zones, both marine and terrestrial, can restrict development or bar sale outright. Confirm a property’s zoning status with the local planning authority before signing anything.
What You Can Build on the Coast
Beachfront is the main draw for most foreign buyers, and it comes with real constraints. The Loi Littoral, which applies to French overseas territories, prohibits new construction within 100 meters of the shoreline outside already-urbanized areas. Even inside more developed coastal zones, expanding the built footprint must be justified in the local urban planning documents, typically by showing the project requires immediate proximity to water for economic reasons.
A vacant oceanfront parcel that looks like a dream homesite can turn out to be entirely unbuildable. Have your notary and a local surveyor confirm whether the 100-meter setback or other coastal restrictions apply before you commit.
How the Purchase Works
The notary (notaire) is the central figure in every French Polynesian property transaction, acting as a neutral public officer for both buyer and seller.
Once you agree on a price, the first formal step is signing a preliminary contract called a compromis de vente. It binds both parties and sets out the price, payment terms, and any conditions to be met before closing, including the foreign investment authorization. A deposit of around 10% is paid at this stage and held in the notary’s escrow account.
One important difference from metropolitan France: French Polynesia does not clearly provide the statutory 10-day cooling-off period that mainland buyers enjoy after signing a preliminary contract. You may be legally committed the moment you sign, so do your due diligence before that step rather than counting on a grace period to back out.
Between the preliminary contract and closing, the notary verifies title, checks for mortgages and liens, confirms zoning compliance, and ensures required government approvals are in place. This typically takes two to four months. The final step is signing the acte de vente (deed of sale) at the notary’s office, after which the notary registers the deed with the land registry. Registration is what formally transfers ownership; until the deed is registered, you do not legally own the property.
Ownership Structures
French Polynesia offers freehold ownership, where you hold full rights to the building and the land, and leasehold arrangements, where you hold a long-term right to use the land without owning it. Leaseholds are common for commercial properties and resort developments and can run for decades, offering a workable route when freehold is restricted.
For larger investments or private islands, some foreign buyers form a local company, typically a SARL (the French equivalent of a limited liability company), to hold the property. This can simplify acquisition and may offer tax advantages on transfer costs, but it adds ongoing administrative obligations and changes how inheritance rules apply. Get local legal and tax advice before choosing this route.
Closing Costs and Ongoing Taxes
Budget for total closing costs of roughly 7% to 8% of the purchase price, covering the notary’s fees, registration taxes, and administrative charges. French Polynesia sets its own tax rates, so metropolitan French transfer-tax schedules do not apply.
The notary’s emoluments follow a regulated sliding scale that decreases as the price rises. On top of that you pay territorial registration taxes and any municipal surtaxes. These costs are almost always the buyer’s responsibility. Purchasing through a company such as a SARL can change the transfer-tax picture, which is one of the reasons some buyers use a corporate vehicle.
Annual property taxes are low compared to most developed markets, and there is no wealth tax on real estate of the kind that applies in mainland France. The main annual charge is the taxe foncière, based on assessed rental value, with municipal surtaxes added on top. New construction receives a generous exemption: five years of full exemption, followed by three years at a 50% reduction, with the full rate applying only from the ninth year onward.1Service Public French Polynesia. Investors Guide French Polynesia 2025
On sale, primary residences are generally exempt from capital gains tax. For investment properties, the territorial rules apply rather than the metropolitan French rates. The specific tax owed depends on how long you held the property and how it was used, and your home country may also tax the gain. For context, mainland France applies a 19% capital gains levy plus 17.2% in social charges for non-EU residents, totaling 36.2%.2impots.gouv.fr. Selling Property – Tax Arrangements and Rate
Forced Heirship Will Apply to Your Property
This is where foreign buyers most often get caught out. The French Civil Code governs inheritance in French Polynesia, and its forced heirship rules override your will. If you have children, you cannot freely leave the property to whomever you choose.
Children are guaranteed a “reserved portion” of the estate:
- One child is entitled to half the estate; you may freely dispose of the other half.
- Two children are entitled to two-thirds, split equally; you may freely dispose of one-third.
- Three or more children are entitled to three-quarters, split equally; you may freely dispose of one-quarter.
These rules apply to property located in French Polynesia regardless of your nationality or where you live. For buyers from common-law countries like the United States, the United Kingdom, or Australia, where testamentary freedom is the norm, this can be a shock. Estate planning before purchase is not optional.
Buying Property Does Not Give You Residency
Ownership gives you no right to live in French Polynesia. The official government investor guide is explicit that foreign investors do not automatically gain residency rights, which remain under the authority of the French State, and there is no investment-based residency or citizenship program.1Service Public French Polynesia. Investors Guide French Polynesia 2025
EU citizens can stay up to three months without a visa and need a long-stay visa beyond that. Non-EU citizens generally need a visa for any stay longer than 90 days, applied for through French consular channels. Owning a home there may support a long-stay application but does not guarantee approval.
Extra Considerations for U.S. Buyers
American citizens and green card holders should factor in two federal reporting obligations, each with severe penalties for non-compliance.
The first is the FBAR (FinCEN Form 114). If you have a financial interest in or signature authority over foreign financial accounts whose combined value exceeds $10,000 at any point during the year, you must file.3Financial Crimes Enforcement Network. Report Foreign Bank and Financial Accounts During a purchase, your funds may pass through a foreign notary’s escrow or a local bank account, potentially triggering this requirement even without a permanent foreign account.
The second is Form 8938 (FATCA). Foreign real estate held directly in your name is not a specified foreign financial asset and does not need to be reported. If you hold the property through a foreign entity like a SARL, though, your interest in the entity is reportable once your total foreign financial assets exceed the filing threshold: for U.S. persons living in the United States, $50,000 at year-end or $75,000 at any point during the year for single filers, and for those living abroad, $200,000 at year-end or $300,000 at any point during the year.4IRS. Basic Questions and Answers on Form 8938 The value of the real estate held by the entity counts toward valuing your interest.
A SARL may cut French Polynesian transfer costs while adding U.S. reporting burdens. A cross-border tax advisor should weigh both sides before you choose a structure.
Insurance Is Not Optional
French Polynesia faces a high risk of coastal flooding, with potentially damaging waves expected at least once every ten years.5Think Hazard. French Polynesia – Coastal Flood Cyclones, while less frequent than in some other Pacific island groups, are a real threat. The natural disaster insurance guarantee system that automatically covers properties in metropolitan France does not operate the same way here, so coverage must be arranged separately.
Treat comprehensive insurance covering cyclone damage, flooding, and earthquake as a fixed cost of ownership. Coastal premiums reflect the elevated risk, and some insurers impose higher deductibles or coverage limits for waterfront homes. Build insurance into your budget before you commit, not after.