French tax authorities now have more time to update incorrect second home tax bills

French tax authorities now have more time to track and audit owners of second homes who do not correctly declare the property’s status.

This relates in particular to the collection of taxe d’habitation on second homes or the taxes on vacant properties. 

Previously, the authorities had only until December 31 of the year following the one in which the tax should have been levied to issue demands for unpaid tax on properties whose use had not been correctly declared by owners. 

For example, a faulty declaration which resulted in tax not being paid in 2024 could only be rectified by authorities until December 31, 2025. After this point, any unpaid revenues from an incorrect calculation could not be collected.

Changes introduced as part of an anti-fraud law have now increased this timeframe by two years. An incorrect declaration with regard to tax in 2025 can see an updated and correct tax bill issued as late as December 31, 2028.

Nothing will change for declarants; notices (avis) for a property’s taxe d’habitation will still be issued in November, with payments due in December of that year unless an owner has previously opted for monthly instalments.

Declarants should, however, check the details of their property through the biens immobiliers section of the French tax website to ensure that information held by tax authorities is correct.

Closer links between tax office and councils 

The updated law also allows for closer alignment between tax authorities and local councils in a bid to crackdown on second-home fraud.

Tax officials will send municipal councils a list with information about all properties in the area, including their status (main home, second home, vacant, etc) as declared by the owners through the biens immobiliers form.

This can then be cross-referenced with information held by councils about the property to ensure that homes are not being incorrectly labelled either as a way to avoid the correct taxes being levied or to bypass second-home limits in certain areas.

As taxe d’habitation is one of the few remaining sources of local tax in France – collected and spent directly by communal authorities – officials are keen to ensure they collect the correct amount. 

However, penalties and corrections for underpaying/omissions on the property owner’s part are dealt with by the tax authorities. 

In May, communes in south-west France became the first to directly penalise homeowners who misdeclared the status of their second homes following an agreement with the tax authorities.