It has become more expensive to own a second home in France in recent years due to the higher cost of living and new (and old) taxes targeting them, but help is still available. We look at how second-home owners can manage running costs and use grants to boost their value.
There are estimated to be about four million second homes in France, and certain areas are seeking to limit their spread in the future.
This comes after a series of tax reforms that are apparently unfriendly towards second home ownership, including the suppression of taxe d’habitation for main homes (but not for second homes).
What is more, more than 3,700 communes are now able, if they choose, to levy a surcharge on top of the taxe d'habitation, which can be 5-60% of the municipal share (the main part) of this tax. This year around 1,500 opted to do so, up from 308 last year (when 1,136 were eligible), though only 37% went for the maximum 60%.
The new eligible areas are deemed to face housing pressures. Formerly only large urban areas qualified but this is no longer the case.
On average, running a second home costs about 1-5% of the purchase price each year according to Le Figaro, which estimates that costs can be twice as much as for a main home.
This is due to factors such as insurance which is often more costly for a property that will be left unoccupied for more than a certain number of months a year, the fact that the property owner's tax is generally not subject to certain reductions that may be applied for main homes, and the fact that, as mentioned, taxe d'habitation is still applied (and sometimes subject to a surcharge).
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This figure also does not factor in potential property wealth tax (l'impôt sur la fortune immobilière) though you would have to own propery in France worth €1.3millon for this to apply.
Maintenance costs for a second home can also be high, for example if it is in a tourist spot subject to sea spray, damp, sand, salt or snow. You may also incur extra costs in having workers check on the property and maintain it during long periods away.
Meanwhile, some local authorities in tourist areas also require owners to carry out regular renderings, which can cost around €40/m² for an exposed wall. Wooden facades and terraces also require regular varnishing or painting, as well as fungicide treatment.
Older buildings - which, with their charm and character, might appeal more as a second home - will also need more upkeep than new builds - and require more specialised contractors
What financial assistance is available for second homes?
Second homes are eligible for several grants including:
The Prime Energie - not to be confused with MaPrimeRénov' (which is only for main homes), this bonus is intended to improve the home’s energy efficiency. The payment is made via your electricity or gas provider. You can speak to your provider, or obtain information on the scheme from an advisor in the official France Rénov' network which helps people with renovation schemes.
VAT reductions for home improvements - certain purchases and building work are eligible for reduced VAT (at 5.5% or 10%), including having a new boiler or kitchen fitted. A full list of eligible improvements is available on the official website here.
Taxe foncière exemptions - Substantial renovations that improve the energy efficiency of your second home can make it eligible for a 50% to 100% reduction in the taxe foncière bill for up to three years, depending on your commune. For this to apply, you must have spent at least €10,000 on improving the energy efficiency via a firm with the RGE eco-friendly certification. Your mairie can tell you if this is in place locally. An exemption for over-75-year-olds may also apply in certain circumstances.
One popular way to manage the cost of a second home is to rent it out when you are not using it.
Popular websites for this include Booking.com and Airbnb.
The latter may be especially ideal if you have an unusual property, as it has categories such as ‘OMG!’, 'tinyhouse', ‘treehouses’, ‘rural cabins’ etc.
Sites such as The Collectionist, Belvilla, and Villanovo may be good options for particularly charming properties.
If your property fulfils a particular niche, you could try different types of rentals on platforms such as GreenGo or Canopy & Stars, which offer glamping-style yurts, chalets, cabins, and shepherd’s huts.
Listing your property online does require work, however; including good quality photos, descriptions, guest communication, gathering reviews, hospitality touches, and taking care of cleanliness and guest turnarounds.
Many homeowners hire a management company to do this for them.
Other options include renting your home through holiday cottage companies, which can also take care of the admin and management for you.
You will also need to inform yourself of the French tax implications of doing this.
Another way of cutting costs on a second home is to own it with another family or owner, and operate your own informal ‘timeshare’ system. This means you both get to benefit from the house at different times, but split the costs.
This can have its pitfalls, such as agreeing on when to use it, and how to share out repair costs if something breaks while one family is staying, but overall it may help both families to save money.
