What Is French Property Tax on Second Homes?
Owning a second home in France comes with specific tax obligations that differ from those applied to a primary residence. Whether you use your property as a holiday home, occasional rental, or long-term investment, it’s essential to understand how property taxes are calculated and what your responsibilities are as a non-resident or resident homeowner.
Second homes in France are subject to two main types of property taxes:
- Taxe foncière – A land tax paid annually by the property owner, regardless of how the property is used.
- Taxe d’habitation – Historically paid by the occupant, this tax is still applicable to second homes even though it has been abolished for primary residences in most cases.
These taxes are set locally, meaning amounts can vary significantly depending on the location of your home — with cities like Paris, Bordeaux or Lyon applying different rates and rules.
For second home owners, especially non-residents, it’s important to stay informed about recent legal changes and ensure that your property remains compliant with all French tax filing requirements. To read : The different taxes in LMNP and Understanding Property Taxes in France
Primary Residence vs. Second Home
In France, the distinction between a primary residence and a second home isn’t just a question of personal usage — it has real implications for how your property is taxed.
Your primary residence is the home where you live on a regular basis, and where you have established your main center of interests: work, family life, administration, and everyday activities. It’s the address you declare to the French tax authorities and, if applicable, to the local mairie. French law offers various tax advantages to those living in their primary home, including significant exemptions on certain local taxes.
A second home, by contrast, is any property that does not qualify as your main residence. It could be a vacation home used a few weeks a year, a future retirement property, or even a rental that you occupy occasionally. What matters is that it’s not your official place of residence — and the tax treatment reflects that.
Second homes are more heavily taxed, and recent legislation has aimed to increase the financial pressure on owners who leave properties vacant or underused, especially in areas where housing is scarce. Local governments also have more freedom to apply higher tax rates to these properties, making it all the more important for owners to understand the distinctions and comply correctly.
FAQ: French Property Tax on Second Homes
Do I have to pay “taxe d’habitation” on my second home in France?
Yes. Even though taxe d’habitation has been abolished for most primary residences, it still applies to second homes. In certain areas, especially in popular tourist destinations or high-demand housing zones, this tax may even include a surtax, which can significantly increase your bill.
Can I be exempt from property tax as a second-home owner?
Exemptions are rare for second homes. Most of the tax relief measures in France are targeted at primary residences or low-income owners. However, you may benefit from deductions if the property is rented long-term under specific conditions, or if it qualifies for certain energy-efficiency programs. Always check with your local tax office.
To read: The LMNP and LMP related taxes and Comparison of LMNP and LMP statutes
How is the amount of property tax calculated?
Both taxe foncière and taxe d’habitation are calculated based on the “valeur locative cadastrale”, a notional rental value assigned to your property. This base value is then multiplied by local rates, which vary from one commune to another. For second homes, local councils can apply higher rates or surtaxes.
What happens if I don’t declare the usage of my second home?
If you fail to submit the occupancy declaration via your account on impots.gouv.fr, you risk a fine of €150 per property. Inaccurate or missing information may also lead to inappropriate taxation — for example, being taxed as if the property is vacant or income-producing.
Are second homes taxed differently depending on their location?
Absolutely. Property taxes in France are not standardized nationally. Each commune sets its own rates, and certain regions apply additional surcharges for second homes. Owning a property in central Paris or on the Côte d’Azur will generally cost more in taxes than a home in a rural village.
Do non-residents have to pay French property taxes?
Yes. Whether you live in France or abroad, if you own a property in France — including a second home — you are subject to the same local property taxes as French residents. You’re also required to complete the necessary declarations and may be liable for additional taxes such as capital gains tax if you sell the property. To read : Buying Property in France as an American