More properties subject to empty home tax in France this year
Authorities in any town subject to housing pressure can consider levying the Taxe sur les logements vacants (TLV)
French communes in ‘zones tendues’ apply the TLV to unfurnished properties that are not rented or lived in, and had been vacant for at least one year as of January 1 of the tax year
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Towns in France are increasingly levying a tax on empty and unfurnished homes, with authorities in any town considered to be under 'housing pressure' now applying it.
The TLV (Taxe sur les logements vacants) applies to 3,697 towns in 2024, compared with just over 1,100 in 2023.
This is because of new legislation, published in 2023 but effective from 2024 that changed the eligibility criteria such that owners of property in any towns experiencing property market tension will have to pay the TLV.
This applies even if the commune is not in a major urban centre (previously, it only applied in urban areas with more than 50,000 residents).
It is not a local tax but in fact goes to fund national agency Anah, which provides grants to help lower-income households carry out renovations. Some of it also goes into the general national state coffers.
The same ‘under tension’ areas are also those where local mairies can vote, if they choose, to levy a surcharge on taxe d’habitation on second homes.
What is the TLV?
In areas that charge it, the TLV applies to:
Unfurnished properties that are not rented out or lived in
Properties that have been vacant for at least one year on January 1 of the tax year (eg. on January 1, 2024, for bills payable in December 2024).
Normally, the payment notice is sent out in October, and payment must be made by December 15.
“Since this year, these zones have included all municipalities where there is rental pressure, whether they are located in a large town or not, but also those where there is a high proportion of second homes,” said consumer association UFC-Que Choisir.
Which towns are charging TLV?
The full list of towns concerned is available online.
The government website Service Public also offers a tool to help homeowners determine if they live in a zone tendue (under tension zone).
How is the tax calculated?
The exact amount of tax is calculated on the basis of the property's cadastral rental value (valeur locative cadastrale). This is based on an estimate by the tax authorities of the amount the property could earn if rented out (the estimate may differ from actual market conditions).
The TLV tax rate is set at 17% for the first year, and 34% from the second year onwards.
If an owner has several vacant properties in the scope of the TLV, they must pay the tax for each of them.
To be exempt from this tax, owners must prove that the property:
Has been lived in for more than 90 consecutive days in a calendar year
Or has been empty for reasons outside of their control (for example, the property has been put up for rent or sale and no tenant or buyer could be found, or would require substantial works to be rented out)
Property owners who must pay the TLV on a property are not required to pay taxe d'habitation for the same property.
Read also: Taxe foncière France’s local property tax: Who pays and the exemptions
The taxe d’habitation sur les logements vacants (THLV)
A tax called the taxe d’habitation sur les logements vacants (THLV) may be levied in areas not considered to be zones tendues, if the local council votes to charge it.
This means that empty properties, even if they are in non-high-pressure areas, do not necessarily escape taxation.
This tax, if the council decides to levy it, applies to:
Normally, the payment notice is sent out in November, and payment must be made by December 16 if using a traditional form of payment, or December 21 online.
