French Property Tax on Second Homes: What Owners Need to Know

Owning a second home in France brings important property tax responsibilities that differ from those for primary residences. Even if you only use the property occasionally, as a holiday home, occasional rental, or investment, you may owe local taxes that can be significant depending on the location and nature of the property. 

This guide explains the key taxes, how they are calculated, who is responsible for paying them, and what special rules apply to second homes. 

Main Local Property Taxes for Second Homes

In France, the two principal recurring property-related taxes that affect second homes are:

1. Taxe Foncière, Property Ownership Tax

This is an annual tax levied on the owner of the property, no matter whether it is occupied or vacant. The amount is based on the notional rental value of the property, known as the valeur locative cadastrale, multiplied by local tax rates determined by the commune. 

Important points about taxe foncière:

• It is due each year by whoever owns the property as of January 1 of the tax year. 
• It applies to all built property, including houses, apartments, and associated outbuildings. 
• Local councils set the applicable tax rates, so the actual amount can vary widely. 

Even if the property is empty or rarely used, you must still pay this tax. 

2. Taxe d’Habitation, Residence Tax on Second Homes

Although the taxe d’habitation has been abolished for primary residences since 2023, it remains fully applicable to second homes and other non-principal accommodations. 

This tax is charged based on the property’s notional rental value and local tax rates, and it is typically payable whether you occupy the property yourself or leave it vacant. 

Unlike the case for a main residence, there are few exemptions for second homes, and local authorities may even apply a surtax in many areas, particularly in high-demand zones, which can increase the tax bill significantly. 

Who Pays These Taxes?

Taxe Foncière

• Liable party: Property owner on January 1 of the tax year. 
• Paid regardless of occupancy: whether the property is rented, vacant, or lived in occasionally. 

Taxe d’Habitation (Second Homes Only)

• Liable party: The occupant of the property on January 1 if it is rented, or the owner if it is unused or vacant. 
• If the home is rented long-term, the tenant may become responsible for this tax instead. 

In all cases, authorities determine liability based on status as of January 1 of the tax year, even if you move in, rent, or sell later in the year. 

How the Amount Is Calculated

For both taxe foncière and taxe d’habitation, the tax base is the notional cadastral rental value of the property, essentially the theoretical rent the home could fetch annually. 

Local tax rates are then applied to that base. Because each commune sets its own rates, the final amount can vary significantly from one municipality to another. 

Additionally:

• Some communes may add surtaxes for second homes to discourage part-time ownership or to counter housing shortages. 
• The localisation of the property, for example in urban centres or popular seaside and mountain destinations, often means higher tax rates.

Special Rules and Surcharges

Local authorities have increasing flexibility to adjust taxes on second homes, especially in markets where housing demand is tight. This can lead to:

• Surtaxes on taxe d’habitation, often ranging up to significant percentages above the base tax. 
• Changes in local tax rates year to year based on council decisions. 

While exemptions are rare for second homes, owners may sometimes qualify for reduced taxes if:

• They rent the property long-term under approved conditions
• They meet specific local tax relief requirements (conditional and variable by commune)

However, these exemptions are uncommon and must be confirmed with local tax offices.

 

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