As a property owner, you are subject to various property taxes, the terms of which vary according to the occupancy of your property. Vacancy tax is a specific tax that is added to the standard property tax when your property remains unoccupied for a specific period of time. This tax is designed to encourage the marketing of available housing in areas where rental demand is high. Understanding the applicable rules enables you to anticipate your obligations and avoid unexpected tax increases.

The legal framework for this tax is based on housing policy and local taxation. Local authorities have the prerogative to institute this tax in certain geographical areas defined by law. You should therefore check whether your municipality applies this tax, and find out exactly what conditions trigger its application.

What is the property tax on vacant dwellings?

This tax is designed to combat the shortage of housing in high-tension areas, by encouraging owners to put their properties on the rental market or for sale. Established by article 232 of the French General Tax Code, it applies in some 1,150 communes located in areas of continuous urbanization with more than 50,000 inhabitants, where there is a marked imbalance between supply and demand. This additional tax differs from the traditional taxe foncière sur les propriétés bâties (payable regardless of occupancy) and the taxe d’habitation (which was gradually phased out and concerned occupants) in that it is levied specifically on owners of dwellings that remain unoccupied for at least one consecutive year, irrespective of any temporary or seasonal occupancy.

Vacant home property tax application conditions

For the property tax on vacant dwellings to apply, your home must have been unoccupied for at least twelve consecutive months on January 1 of the tax year. A dwelling is considered vacant if it is neither furnished nor occupied as a primary or secondary residence, as verified by water, electricity and gas consumption data. Simply putting a property up for sale or rent is not enough to avoid taxation without actual occupation. Only habitable dwellings with sanitary facilities and heating are concerned, to the exclusion of commercial and professional premises and isolated outbuildings.

Geographical location is a decisive criterion. Only those municipalities classified by ministerial decree as “zones tendues” are subject to the tax. This classification concerns areas of continuous urbanization with more than 50,000 inhabitants, where there is a marked imbalance between housing supply and demand. You should consult the updated list of communes concerned on service-public.fr or impots.gouv.fr to check whether your property falls within the scope of this tax.

Calculation and amount of property tax on vacant accommodation

The tax is calculated by applying a rate to the cadastral rental value of your property, i.e. the theoretical annual rent your property could produce. The rate is set by article 232 of the General Tax Code at 17% of the cadastral rental value for the first year of vacancy, then 34% from the second consecutive year onwards. For example, for a property with a cadastral rental value of 10,000 euros, the tax is 1,700 euros for the first year, then 3,400 euros for subsequent years. This amount is in addition to the property tax on built-up properties that you continue to pay as normal.

The tax is the subject of a separate tax notice, which you usually receive at the end of the year. If you dispute the amount or application of the tax, you have the same rights of appeal as for other local taxes.

Vacant home property tax exemptions and special cases

There are several specific situations in which you may be exempt from property tax on vacant accommodation. Vacant properties that have been actively rented or sold can benefit from tax exemption if you can demonstrate that you have been unable to find a buyer or tenant. Properties in need of major renovation work, making them temporarily uninhabitable, are also exempt. Last but not least, properties used as second homes and occupied on a regular basis are exempt from taxation, provided you can prove this through utility bills or other evidence.

To obtain a tax exemption or rebate, you must submit a substantiated claim to the tax authorities by December 31 of the year following assessment. The burden of proof lies with you: you must put together a file demonstrating that the conditions for applying the tax have not been met, or that a reason for exemption exists.

Your reporting obligations and possible remedies

When it comes to property tax on vacant dwellings, your tax obligations require you to notify the authorities of any change in the occupancy status of your property. The tax authorities have extensive means of verifying vacancy: cross-checking energy consumption data, property tax returns, information from local authorities and on-site inspections. Any concealment or misrepresentation is liable to tax sanctions and penalties.

If you dispute a tax assessment, send a written, reasoned complaint to the tax department before December 31 of the year following the assessment. Your dispute may relate to the classification of the property as vacant, the length of time it has been unoccupied, the existence of a reason for exemption or the amount calculated, and must be supported by solid documentary evidence. In the event of rejection, you have two months in which to appeal to the relevant administrative court, a procedure that requires rigorous legal argumentation.

Proactive management of your real estate assets means anticipating these tax issues and systematically documenting the occupation of your property. The assistance of a specialist in tax optimization or a tax lawyer is often essential to secure your situation and maximize your chances of success in the event of litigation.