France Vacant Home Tax 2026: What Expats Must Know About the New Rules

If you own a second home or investment property in France — or you’re looking for a rental in Paris — 2026 brings a major shift. As of mid-2026, Paris has doubled its tax on long-term vacant homes, part of a nationwide push to bring empty properties back onto the rental market. For expats, this means higher costs for leaving a place empty, and potentially more rental options at better prices. This guide explains what’s changed, who’s affected, and how to navigate the new rules.

What is the Vacant Home Tax (Taxe d’Habitation sur les Logements Vacants)?

The vacant home tax, or THLV, is an annual tax applied to properties that have been empty for at least one year. It’s separate from the regular housing tax (taxe d’habitation) and applies to both French residents and non-resident owners. In 2026, Paris has doubled the rate in designated high-demand zones, meaning owners now pay up to 20% of the rental value for the second year vacant, and 40% for the third year and beyond. Other major cities like Lyon, Bordeaux, and Marseille may follow suit.

Who is affected by the doubled tax?

This tax targets owners of empty residential properties in “tight housing markets” (zones tendues). If you’re an expat with a holiday home in Paris that you use only a few weeks a year, or an investor holding a vacant flat, you could face a significant bill. The tax applies to properties that are habitable but unoccupied for 12 consecutive months. Exceptions exist for second homes used at least 30 days per year, properties under renovation, or those rented out for short-term stays (e.g., Airbnb) — but be careful: short-term rental rules also tightened in 2026.

• Paris zone: All 20 arrondissements are affected. Check your specific address on the French tax website (impots.gouv.fr).
• Other cities: As of 2026, Lyon, Lille, Bordeaux, Montpellier, Toulouse, and Grenoble have also increased rates or expanded zones.
• Non-resident owners: You must declare the property status annually via the French tax system — even if you don’t file a French income tax return.

How to avoid the tax — legally

The best way to avoid the THLV is to make your property available for rental. But you have options: rent it out long-term (furnished or unfurnished) for at least 8 months per year; use it as your primary residence (if you live in France at least 6 months per year); or rent it on short-term platforms like Airbnb, but only if you respect the 120-day limit per year in Paris and register with the mairie. Another strategy: offer the property to a family member rent-free, but that may still trigger the tax if they don’t occupy it as their main home.

1. Long-term rental: Sign a standard lease (bail) of at least 1 year. You’ll get rental income and avoid the tax.
2. Renovation: If the property needs major work, you can get a temporary exemption. Keep invoices and a signed contract with a builder.
3. Sale: Selling the property before it reaches the 12-month vacancy threshold also avoids the tax.

Practical tips for expat property owners

If you own a property in France that you don’t use full-time, take action now. First, verify your property’s status with the Centre des Impôts Fonciers. Second, consider hiring a local property manager to handle rentals — they can find tenants, collect rent, and ensure compliance. Third, if you’re a non-resident, you must appoint a tax representative in France if your tax bill exceeds €10,000 per year. Finally, keep detailed records of occupancy: utility bills, Airbnb calendars, lease agreements — anything that proves the property was occupied for at least 30 days in the last year.

• Tip: Use the official “Service Public” website (service-public.fr) to calculate your potential tax before deciding.
• Warning: Fines for non-declaration can be up to €150 per property, plus back taxes with interest.

How this helps expat renters

For expats moving to France and looking for a rental, this policy is good news. The doubled tax is designed to increase supply, which should stabilize or even lower rents in central Paris. In 2026, you may find more options on the market, especially in the 1st, 2nd, 3rd, and 4th arrondissements. However, competition remains fierce — so be prepared with documents: proof of income (3x the rent), a French bank account, and a guarantor (or use a service like Garantme). Also, note that rents for furnished apartments are capped by the “encadrement des loyers” in Paris, so check the reference rent before signing.

Frequently Asked Questions

Does the vacant home tax apply to non-resident owners who live abroad?

Yes. The tax applies to all owners, regardless of residency. Non-residents must declare the property’s occupancy status each year via the French tax portal, even if they do not pay income tax in France. If you fail to declare, you may face penalties and back taxes.

Can I avoid the tax by using the property for short-term rentals like Airbnb?

Partially. If you rent the property on a short-term basis for at least 30 days total in a calendar year, you may avoid the THLV. However, in Paris, you cannot rent a primary residence on Airbnb for more than 120 days per year, and you must register the property with the city. For second homes, short-term rentals are allowed but must be declared. Always check local rules.

What if my property is empty because I’m renovating it?

Renovation can exempt you from the tax, but only if the work is substantial (e.g., structural changes, new plumbing or electrical) and makes the property uninhabitable during the work period. You must provide proof: building permits, contractor contracts, and invoices. Minor cosmetic improvements do not qualify for an exemption.

How is the tax calculated, and when do I pay it?

The tax is based on the cadastral rental value (valeur locative cadastrale), which is an estimate of what the property could rent for. Rates vary by commune. In Paris, as of 2026, the rate is 20% for the second year vacant, and 40% for the third year and beyond. You’ll receive a tax bill in the fall, with payment due by December 15. If you’re a non-resident, you may need to pay via a French bank account or through a tax representative.