Tax differences between main and second homes in france

RECENT CHANGES IN LAW HAVE ELIMINATED SEVERAL TAXES FOR HOMEOWNERS The privilege of owning a second home comes with the burden of increased taxes, and in recent years, this has grown while

decreasing for main homes in France. The television licence that was previously attached to the _taxe d’habitation_ was the first to disappear for all properties, in 2022. Next came the_

taxe d’habitation_ itself for main homes in 2023. However, this lightened load has been followed by more onerous taxes for second homes, which can now be subject to an additional ‘empty home

tax’ in some areas. READ MORE: FRANCE'S NEW PROPERTY DECLARATION FORM: 2024 RULES AND FINES EXPLAINED TAXE FONCIÈRE ON MAIN HOME: YES ON SECOND-HOME: YES The_ taxe foncière_ is a local

property tax that is payable, barring exemptions, if you owned French property on January 1 of a given year. It is payable whether a property is furnished/used or not, and applies to all

homes in France, regardless of if they are main or second homes. There are several reductions or exemptions, linked to factors such as age, disability or income. One of the exemptions, for

main homes only, concerns older people who receive the French pension TOP-UP BENEFIT ASPA or who are recipients of the _Allocation supplémentaire d’invalidité_ (Asi). READ MORE: TAXE

FONCIÈRE EXPLAINER: WHO PAYS AND THE EXEMPTIONS Taxe foncière also includes the bin tax or _taxe sur les ordures ménagères_ for both main and second homes. READ MORE: HOW MUCH HAS THE

‘RUBBISH BIN’ TAX FOR FRENCH HOMES RISEN THIS YEAR? TAXE D’HABITATION ON MAIN HOME: NO ON SECOND-HOME: YES The_ taxe d’habitation _is a local property tax levied on furnished second homes

along with their associated dependent structures, such as garages and outhouses. Note that by ‘second home’, the French tax authorities mean a property that is not your main residence. If

you own a second home that you let out to rent as someone else’s home, then it is considered the primary residence of the tenant/s and you will not pay_ taxe d’habitation_ for it. READ MORE:

EXPLAINER: FRANCE’S TAXE D’HABITATION PROPERTY TAX EMPTY HOME TAX ON MAIN HOME: NO ON SECOND-HOME: YES The_ taxe sur les logements vacants_ is a local property tax levied on vacant second

homes in areas deemed to be under high pressure for housing. Whereas previously only communes with a population of more than 50,000 could charge this tax, since the 2023 Finance Law, all

areas subject to housing pressure can apply it. This tax can apply to a property that has been empty or unoccupied for more than a year on January 1 of a given year. READ MORE: WHAT IS

FRANCE’S EMPTY HOMES TAX AND WHY MORE PEOPLE WILL BE PAYING IT CAPITAL GAINS TAX ON MAIN HOME: NO ON SECOND-HOME: YES When you sell your main home, any gain on the original purchase price is

tax-free in France. However, if you sell a property which is not your principal private residence (_maison principale_) then capital gains tax can apply. If so, the notaire handling the

sale will work this out and deduct it automatically from your sale money. There are reductions - leading to exemption - depending on the number of years of ownership. READ MORE: WHEN ARE

PROPERTY SALES IN FRANCE FREE FROM CAPITAL GAINS TAX? RELATED ARTICLES: ‘GARDEN SHED’ TAX IN FRANCE: WHAT RISES IN 2024 AND WHAT EXEMPTIONS? HOW DO I REDUCE FRENCH CAPITAL GAINS TAX ON A

PROPERTY SALE?