Do taxe foncière exemptions extend to second homes in France?

Reader Question: Do we benefit from the taxe foncière exemption on our second home if we would otherwise qualify for it on our main property? Can we be exempt from it for both properties?

Second home-owners in France are able to benefit from certain property tax exemptions based on their living situation.

The main exemption – for owners on modest incomes aged 75 or over or on certain benefits – is most commonly obtained with regard to primary residences. 

However, a ruling from the Conseil d’Etat in 2000 confirms that it is technically possible to obtain it for a second home, as the relevant law states only that the home should be exclusively for your own use, not whether it is a main or secondary residence.

This ruling, known as the Friteau case, comes into play when a person aged 75 or above meets the usual low income conditions that allow exemption from taxe foncière on their main property as well as genuinely owning the second property themselves as a holiday home and not renting it out.

The same income thresholds apply for the exemption.

Note, however, that the €100 reduction for those aged 65-74 if their household income falls below specific low-income thresholds does not apply to second homes.

Whereas exemptions on the tax for primary homes are typically automatic, for a second home benefitting from the Friteau ruling the owner will need to ask the local tax office for the exemption. 

The relevant tax office is the one local to the second home’s location, not your primary residence.

Take care if trying to contact the tax office via your account on the French tax website, as this will likely direct queries to the tax office linked to your main property.

Note that because the benefit is based on checking a person’s revenu fiscal de référence (adjusted net taxable income figure, found on the last avis d’impôt sur le revenu), it is unlikely that those who have their main home outside of France will benefit. 

Depending on an individual’s situation they may not complete an annual French income tax return, in which case they will be unable to show they are under the income threshold required to benefit.

Furthermore, if they regularly rent out their home to other people that could call into question the rule on their own exclusive use. 

Two-year exemptions / freezes possible

Newly-constructed second homes also benefit from a two-year temporary exemption from paying taxe foncière. 

A two-year freeze also applies to increases following certain major property improvements (essentially rebuilding or extensions) as well as when a property or piece of land sees its use converted, such as from a barn to a home. 

In the case of property improvements the works must be declared within 90 days of completion. It does not exempt the owner from any taxe d'aménagement payments required on the improvement. 

Local councils are able to limit any of these temporary exemptions, so it is worth checking with your local mairie whether this is the case where your second home is. 

Note that even if you are exempt from the taxe foncière on a second home, it is extremely unlikely you will be exempt from the taxe d’habitation (second home tax). 

Exemptions for the latter are extremely limited.