Second-Home Housing Tax in France: What You Need to Know
If you rent or own a furnished property in France as a second home or pied-à-terre, you may come across taxe d’habitation, also known as French housing tax. For many foreigners, this tax can be confusing because the rules have changed in recent years.
The simple answer is: taxe d’habitation no longer applies to a person’s main home, but it can still apply to second homes.
What is the housing tax (taxe d’habitation)?
Taxe d’habitation is a local residence tax, similar to council tax in the UK. It is collected for local authorities and is linked to the use of a property, not just to ownership.
In the past, almost everyone living in a home in France had to pay taxe d’habitation, whether they were the owner or the tenant. Today, it has been abolished for main residences and mainly applies to furnished properties used as second homes or occasional residences.
Who needs to pay housing tax in France today?
You may be liable for housing tax if, on 1 January of the tax year, you have the private use or enjoyment of a furnished property that is not your main residence. This rule applies to:
- the owner, if they use the property as a second home;
- a person with the legal right to use the property, such as a usufructuary;
- a tenant who rents the property as a second home.
In other words, the tax is not limited to owners; it can also apply to tenants who rent a furnished property as a second home, particularly if they use it regularly or throughout the year.
For example, you may need to pay taxe d’habitation if:
- You rent a furnished apartment in Paris as your pied-à-terre, but your main home is in London, New York, Dubai, or another French city.
- You own the property and keep it available for yourself during business trips or holidays.
Do you have to pay housing tax on corporate housing?
If you have a second home for professional reasons, or if you occupy company-provided accommodation, it is generally considered a second home. In this case, you will normally have to pay housing tax on that property, even if you only use it for work-related purposes.
However, you may be eligible to request an exemption from the surcharge on the housing tax for second homes if your job requires you to live in a location different from your main residence and this accommodation is necessary for your professional activity.
What types of properties are subject to housing tax in France?
The tax mainly applies to furnished properties that are ready to live in and available for use. Basic furniture such as a bed, table, chairs, and kitchen equipment is usually enough for the property to be considered furnished.
It can also cover related spaces linked to the home, such as garages, parking spaces, cellars, or annexes.
Unfurnished properties are generally not subject to taxe d’habitation. Instead, they may fall under a separate tax on vacant homes.
Do foreign owners need to declare how their French property is used?
This is a common source of confusion for foreign owners and tenants in France. The key point is that the formal occupancy declaration is mainly an obligation for property owners, not tenants.
How to make the occupancy declaration in France
The declaration is made online through “Gérer mes biens immobiliers” on impots.gouv.fr. You must file or update the occupancy status of your property or properties, indicating whether they are used as a main residence, a second home, rented out, or vacant, and who occupies them.
Rules for foreign property owners in France
Foreign owners are subject to the same rules as French owners.
If you are a foreign owner of French property, you still need to file or update the occupancy declaration when required.
This is usually done through your online tax account, and updates must be made whenever there is a change in occupancy. If the declaration is missing, late, or incorrect, penalties may apply.
What tenants need to know about occupancy declaration
Tenants do not usually make the formal occupancy declaration, as this is mainly the owner’s obligation. However, if you rent a property in France, especially as a foreign resident or as a pied-à-terre user, you should still make sure your own situation is clear and properly documented.
Your rental contract, utility bills, French tax address, home insurance, and other official records should be consistent with whether the property is your main residence or a second home.
Who can be exempt from housing tax in France?
Full exemption for main residences
For main residences, the rule is simple: taxe d’habitation has been fully abolished since 2023. If your apartment in France is your primary home, you should not have to pay housing tax on it.
Exemptions for second-home housing tax are very limited
For second homes, exemptions are much more limited. In most cases, taxe d’habitation still applies to furnished properties used as second homes or pieds-à-terre. However, you may qualify for an exemption in specific situations, including the following:
1. Moving to a care facility
If you leave your main residence to move permanently into a retirement home, EHPAD, or long-term care facility, your former home may be exempt from second-home housing tax from the year following your admission.
2. Properties in certain rural revitalization zones
In certain France Ruralités Revitalisation zones, local authorities may choose to exempt classified furnished tourist accommodation and guest rooms from housing tax, usually subject to filing the required declaration.
3. Returning to France after an official crisis
If you were living abroad and had to return to France because of an official evacuation or crisis, such as political unrest or a health emergency, you may be able to request an exemption on a second home that was previously your main residence in France.
This exemption is not automatic. You must contact the French tax authorities and submit a request.
How much housing tax do you have to pay on a second home in France?
How is taxe d’habitation calculated?
Taxe d’habitation is not a fixed amount. It is calculated based on the property’s cadastral rental value, an administrative value assigned by the French tax authorities, combined with the tax rates set by the local authority.
The final amount depends on several factors, including the size of the property, its location, its condition, its level of comfort, and the applicable local tax rate.
How much should you expect to pay in Paris?
In Paris, as a rough guide, the annual housing tax on a second home can sometimes be close to one month’s rent. However, the exact amount varies significantly depending on the specific characteristics of the property.
Why second-home tax can be expensive in France?
In Paris and other high-demand areas, the tax can be quite high. This is because some local authorities add an extra charge for second homes.
The idea behind this tax is that a second home is not treated as essential housing. It is meant to discourage owners from keeping homes underused, especially in places like Paris, where many people struggle to find a main residence.
It also encourages owners to rent out the property or make it available to people who need a primary home.
When do you need to pay taxe d’habitation in France?
Housing tax notices are usually issued toward the end of the year. The payment deadline is written on the notice and may fall in November or December, depending on the year and payment method.
If you pay online or by direct debit, the amount may be debited later than the payment deadline shown on the notice.
Always check the date written on your tax notice, as this is the official deadline for your payment.
What should you do if there is a mistake on your housing tax notice?
If you receive a taxe d’habitation notice that seems incorrect, do not ignore it. Mistakes can happen, especially if you are a foreign owner, an international tenant, or someone who has recently moved.
How to contest your taxe d’habitation
If you think your taxe d’habitation notice is wrong, you can file a claim online through your account on impots.gouv.fr.
- Log in to your account on impots.gouv.fr.
- Go to Messagerie sécurisée.
- Select Écrire > Réclamation/Contestation > Taxe d’habitation.
You can also send a written claim by post to the tax office responsible for the property. Make sure you contact the correct office, based on where the property is located.
What documents should you provide to contest a mistake on your housing tax notice?
To support your claim, include as much clear supporting evidence as possible. Useful documents may include:
- Your rental contract or lease
- Proof of move-in or move-out dates
- Utility bills, such as electricity, gas, or internet
- Tax residency documents
- Sale deed, especially if the property was sold before 1 January of the tax year
You can also include any document showing that the property was your main residence, that it was not a second home, or that you were not responsible for paying the tax.
Final advice for foreigners renting in Paris
When you rent an apartment in Paris, be clear from the beginning about how you plan to use it. Tell the real estate agent and the landlord whether it will be your main residence, work-related housing, or a pied-à-terre.
This is important because the use of the apartment can affect the type of lease you sign. A main residence usually falls under a classic residential lease, often referred to in practice as a Loi ALUR lease. A second home, company housing, or pied-à-terre usually falls under a Code civil lease instead, depending on the situation.
This can also affect whether you receive a housing tax bill later. Since this tax can be significant, it is better to understand the situation clearly before signing the lease.
Keep documents showing where you lived, when you moved in or out, and whether the Paris apartment was your main residence or a second home. If there is a mistake on your tax notice, these documents will help you contest it.
Editor: Siyi CHEN
Photo by Annie Spratt on Unsplash.
