New vacant homes tax from 2027: who will really be affected?

France will replace its two existing taxes on empty homes, the taxe sur les logements vacants (TLV) and the taxe d’habitation sur les logements vacants (THLV), from 2027 with a single tax: taxe sur la vacance des locaux d’habitation (TVLH). 

The way this tax, TVLH, applies will depend on where the property is located. In areas with housing pressure (zones tendues) for example, the tax will apply automatically to eligible vacant homes, while elsewhere local councils will decide whether to introduce it.

Which homes are considered vacant 

Whether or not a home is considered vacant depends mainly on whether a property is genuinely empty, rather than simply how often it is used, according to the Union nationale des propriétaires immobiliers (UNPI).

Owners of second homes who only stay in their property for a few weeks a year should not automatically be affected by the new tax law. 

“A second home, meaning a furnished property, is not a vacant home,” UNPI told The Connexion. 

For tax purposes, a vacant home is a habitable property that is not furnished or is insufficiently furnished to allow normal occupation. This means that a furnished second home is not impacted by the vacant home tax even if the owner is using it occasionally. 

“A property furnished on January 1 and therefore subject to taxe d’habitation will not be subject to the TVLH, even if its owner only occupies it for two days a year,” UNPI explained. 

Owners should nevertheless keep evidence that a property is genuinely furnished and used, such as electricity bills, furniture purchase invoices or other documents showing occupation. 

How long must a home be empty before the tax applies? 

The timing depends on the location of the property. In zones tendues, the tax applies when a home has been vacant for at least one year on January 1 of the relevant tax year.

Outside these areas, the local authority must first decide to introduce the tax, and the property generally must have been vacant for at least two years.

However, a property that remains empty despite genuine efforts to sell or rent it should not automatically be taxed. 

The tax administration excludes homes that are offered for sale or rent at market conditions but fail to find a buyer or tenant. 

“As long as the taxpayer can prove that the property has been put up for sale or offered for rent through several agencies, with the sale or rental price adapted to market conditions, a vacancy lasting even several years should not result in taxation,” UNPI said.

This means that owners of empty homes or properties should always keep:

• Proof that their home is furnished

• Bills and other evidence showing occupation

• Records of attempts to sell or rent the property 

• Supporting documents explaining why the property cannot currently be occupied, including renovation reports or expert reports demonstrating that substantial and costly works are necessary to make the dwelling habitable