New regulations for second homes in France
The tax increase
If you own a house in France, you may already be aware: since January 1, 2023, the council tax no longer applies to primary residences, but still applies to second homes. The cancellation of the housing tax was partly cushioned by the increase in the property tax for all types of properties.
But this measure does not seem to be enough and a bill has been proposed to further increase these taxes on second homes, as is already the case in some eligible areas.
Where does the markup apply today?
This increase in housing tax and property tax already exists in France in certain eligible areas, i.e.:
- municipalities located in an area of more than 50,000 inhabitants with an imbalance between housing supply and demand,
- municipalities with a very high proportion of second homes.
This bill aims to discourage real estate speculation and encourage owners to rent out their properties. It was proposed in October 2024, the case is still ongoing.
New restrictions on rentals
New restrictions on seasonal rentals have been put in place with strict new limits on the number of rental days allowed per year for second homes, which could be reduced from 120 to 90 days. These restrictions, which already existed in some large cities, aim to reduce the misuse of certain rental platforms to the detriment of residents looking for housing.
The limitation of second homes in certain municipalities
The law also provides for a ban on the construction of second homes in areas of municipalities where their proportion is already particularly high (more than 15% of the housing stock). Coastal areas are particularly targeted, but other regions, such as the Alps, the Pyrenees, Limousin, the Cévennes and Corsica, could also be affected.
The incentive for the sale of second homes
The final key measure in this law is to encourage the sale of french second homes, through tax breaks: exemptions from capital gains tax under certain conditions and reductions in transfer duties, in order to free up housing for residents.
The obligation of energy renovation
The mandatory renovation of thermal sieves is not new, but you should know that from January 2025 properties classified G can no longer be rented. Landlords, including those living abroad, will have to carry out work to bring them up to standard to improve the energy efficiency of their properties.
Conclusion
Despite new regulations, France remains a dream destination for those wishing to invest in a second home. These measures, although restrictive for some, are designed to create a balance between respect for property heritage, protection of the land and access to housing for all. For foreign buyers, it is also essential to find out about the visa rules for a second home in France, and for future owners, it can also represent a unique opportunity to become more involved in preserving their property, optimising its use and contributing to local vitality. With the right preparation and information on the latest legislative developments, it is always possible to make a holiday home in France a reality, while enjoying the exceptional living environment it has to offer.
