Shocking 2026 Property Tax in France Changes: Will Your Home ..

If you own property in France, it’s important to stay informed about the latest changes in property tax regulations. In 2024, a significant number of homeowners could be impacted by the expansion of the Vacant Property Tax (VPT). This is one of the many types of property tax in France that homeowners must be aware of, especially those whose properties remain unoccupied for extended periods.

What Is the Vacant Property Tax (VPT)?

Among the various forms of property tax in France, the Vacant Property Tax (VPT) specifically targets homes that have been left vacant for over two years. If your property is unfurnished and unoccupied for at least two consecutive years from January 1 of the tax year, and it’s located in a high-demand area, you may be subject to this tax. High-demand areas, also called “zones tendues,” are typically cities with over 50,000 residents where housing shortages are common.

According to INSEE, as of January 1, 2024, 3.1 million homes are considered vacant across France, representing 8% of the country’s housing stock. Among these, one million properties have been vacant for more than a year, making many homeowners newly subject to the property tax in France linked to vacant homes.

Expansion of the Vacant Property Tax

Until 2023, the VPT applied to just over 1,100 municipalities. However, starting in 2024, this number has tripled, now covering 3,697 towns. This expansion of the property tax in France means that many more homeowners across the country could be required to pay this tax, particularly in regions facing housing shortages or with a large proportion of second homes.

The consumer association UFC-Que Choisir has highlighted that this broader application now includes not only major metropolitan areas but also smaller towns with significant rental demand or a high percentage of second homes.

Real Estate Declaration and Compliance

In 2024, a new real estate declaration system was introduced, aimed at ensuring that property owners comply with various property tax in France regulations. This system helps the tax authorities identify which properties should still be subject to taxes, such as the VPT for vacant homes and taxes on second homes. It also allows for better tracking of properties that have remained unoccupied for extended periods.

VPT vs. VRPT: Understanding the Differences

While the VPT applies to properties in high-demand areas, homeowners in non-urban areas should also be aware of the Vacant Residence Property Tax (VRPT), another type of property tax in France. The VRPT applies to properties outside of these high-demand zones but is implemented at the discretion of local municipalities. This means even if your property is not located in a high-demand area, you could still face taxes if your local government has adopted this tax.

Who Is Exempt from the Vacant Property Tax?

Certain homeowners may be exempt from this type of property tax in France. For instance, if the property is occupied for more than 90 consecutive days (three months) during the year, you may not have to pay the VPT. The General Directorate of Public Finances (DGFiP) also grants exemptions if the vacancy is beyond the owner’s control, such as if the property is listed for rent or sale at market value but cannot find tenants or buyers.

Other exemptions include properties that require extensive renovations (worth at least 25% of the property’s value) to become habitable, non-residential properties, or furnished second homes that are subject to the residence tax.

How Is the Vacant Property Tax Calculated?

The calculation of this property tax in France is based on the property’s cadastral rental value (CRV), similar to how the standard property tax (taxe foncière) is determined. A rate of 17% is applied to the CRV during the first year that the property is declared vacant, and this rate increases to 34% for subsequent years.

Payment Deadlines and Procedures

The tax notice for the VPT is typically sent in October, either online or by mail. Payment deadlines for this property tax in France fall on December 16, or December 21 for those who choose to pay online or via direct debit. If the tax exceeds €300, online payment is mandatory, while amounts under €300 can be paid via cash, check, or other accepted methods.

How ESCEC International Can Help

Navigating the complexities of property tax in France can be challenging, especially with evolving regulations like the Vacant Property Tax. Whether you’re unsure about your tax liabilities, need guidance on exemptions, or are facing difficulties managing your real estate investments, ESCEC International is here to assist.

Our team of experts offers comprehensive tax, legal, and accounting services tailored to property owners. We help you understand the nuances of property tax in France, ensure compliance with the latest legislation, and work to optimize your tax strategy. Whether it’s filing taxes for vacant properties, second homes, or managing other local taxes, we provide personalized advice to minimize your tax burden and safeguard your investments.

If you’re affected by the new Vacant Property Tax or other local taxes, don’t hesitate to reach out to us at ESCEC International. We’re committed to helping you navigate these complex regulations with ease and confidence, ensuring you’re always on top of your obligations.