More second homes in France face higher tax under new proposal
Far-left proposal would see all communes able to levy additional surcharges on second-home tax
The amendment will still need to be voted through by the Assemblée nationale as part of next year’s budget
Dimitrina Lavchieva / Shutterstock
A proposal by left-wing MPs allowing all communes to levy additional second home property taxes has been passed by the Assemblée nationale Finance Commission.
MPs sitting on the Commission who belong to the far-left La France Insoumise (LFI) group proposed the change as an amendment to the 2025 budget during preliminary discussions on the bill, before it enters wider debate in the chamber today (October 21).
It would see all communes able to levy up to a 60% surcharge on tax bills for second-home owners (taxe d’habitation) which would go directly to local communes.
Currently, this can only be levied in communes facing a housing shortage – around 3,500 communes, or around 10% of the country.
However, the government can choose not to place the amendment in the bill before it is debated, and MPs in the chamber may choose to reject it during the voting process.
Unlike the proposed changes to France’s exit tax – also added via an amendment to the 2025 budget bill by the Finance Commission – this proposal by the LFI is unlikely to have cross-chamber support from the right.
Read more: Moves to strengthen France’s ‘exit tax’: who would this affect?
What are the proposed changes?
Taxe d’habitation is a property tax that since 2023 has been exclusively levied on second homes (i.e not the main residence of the owner or a property rented out as a principal residence to renters).
It also applies to people who have a holiday home in France but spend the majority of their time abroad.
Read more: Explainer: France’s taxe d’habitation property tax
Depending on the type of property, communes in areas facing a housing shortage (zones tendues) can levy an additional surcharge of anywhere between 5% and 60%.
Previously, this only applied to communes with 50,000 inhabitants or more, but a law change in 2023 removed this limitation, allowing all communes in an area of housing shortage to potentially add this surcharge.
In 2024, out of the 3,500+ communes eligible to apply the surcharge, over 1,500 did, with at least 500 applying the maximum 60% increase.
Read more: Thousands more French second homes face 2024 tax rises
These communes also raise taxes on vacant and empty homes, although the amounts raised by this tax go towards national housing agency Anah, and not local commune coffers.
Property owners who must pay the TLV on a property are not required to pay taxe d'habitation for the same property.
Read more: More French towns are imposing ‘empty home tax’ in 2024
The proposal by the LFI sees all criteria for these additional surcharges removed – any commune would be able to levy the surcharge on second homes.
To apply the surcharge, local councils would need to vote in favour of applying them.
