France to merge vacant home taxes from 2027
Two taxes levied on vacant homes to be replaced by a single tax
The move to create a single tax was initiated in the Senate, which said the existing system of two taxes was too complex
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The two taxes which can be applied to vacant homes in France are to be merged into a single tax from 2027.
Properties are considered vacant by the tax office if they are deemed to be dwellings, are unfurnished or only lightly furnished, have basic services such as running water, electricity and wastewater disposal, and have been empty for at least a year.
The two taxes which currently apply are called the taxe sur les logements vacants (TLV) and the taxe d’habitation sur les logements vacants (THLV).
Which properties are affected
The TLV is applied if the home has been vacant for a year on January 1 of the relevant tax year, and the commune has been designated a zone tendue (under housing pressure).
Zones tendues are mainly found in coastal areas, where, over the past 20 years, tens of thousands of homes have been taken off the market so they can be rented to tourists via platforms such as Airbnb.
The tax revenue goes to the Agence nationale de l’habitat (Anah) – the public agency that helps improve private housing in France, especially for lower-income households and older or deteriorating homes.
The THLV can be applied if the commune is outside a zone tendue and the municipal council votes to apply it. The revenue goes to the commune. Rates are the same as the taxe d’habitation on second homes.
It is due if the dwelling has been vacant for two years from January 1 of the relevant tax year.
You can check whether your commune is subject to either tax by inputting its name and postcode here.
The move to create a single tax was initiated in the Senate, which said the existing system was too complex.
How the new tax will work
A new name has been given to the tax – taxe sur la vacance des locaux d’habitation (TVLH).
Anah will no longer receive revenue from it, with all TVLH taxes going to communes instead.
However, the distinctions between TLV and THLV effectively remain, with the tax being automatic in a zone tendue if the property has been empty for a year, and applied by decision of the municipal council in the rest of the country on houses empty for two years.
Exemptions have been written into the new tax rules, including for property owners who can prove that the dwelling is empty for reasons beyond their control.
The example cited is if the home has been listed for rent or sale at a market rate but has not found a tenant or a buyer.
Another exemption is if the home has been occupied for at least 90 days in the past year, or past two years, depending on where the commune is located.
HLM social housing is exempt from the tax.
Like the two existing taxes, the amount paid under the new regime depends on the valeur locative cadastrale (theoretical rental value) of the property – the same figure used to determine taxe foncière.
It is set at a basic rate of 17% for the first year, rising to 34% thereafter in a zone tendue, although local councils in the zone can vote to raise this to 30% in the first year and 60% after that.
For areas outside a zone tendue, the council can set its own rate as long as it remains below 50%.
