A single tax for vacant homes from 2027

A property is considered vacant from a tax point of view, when it is in particular:

• for residential use;
• unfurnished (or furnished insufficiently to allow for suitable accommodation);
• equipped with basic comfort elements (an electrical installation, running water, sanitary equipment, etc.);
• free from occupation for a certain period of time.

Currently, if you own a vacant dwelling, you may have to pay the annual tax on vacant dwellings (TLV) or the housing tax on vacant dwellings (THLV), depending on the municipality where your property is located.

• You must pay the TLV if you are the owner or usufructuary of a dwelling that has been vacant for at least one year at 1^er January of the tax year, and that this property is located in a municipality located in a tense area (in other words a municipality characterized by a significant imbalance between the supply and demand of housing, which leads to difficulties in accessing housing in the existing residential stock). The list of municipalities belonging to a stretched area shall be fixed by decree. You can check if the TLV applies within your municipality, with the Public Service simulator.

• You must pay the THLV if you are the owner or usufructuary of a dwelling that has been vacant for more than 2 years at 1^er  January of the tax year, and that this property is located in a municipality that has decided to implement this tax (this municipality must be located outside the application zoning of the annual tax on vacant housing – TLV). You can check if the THLV is applicable to vacant housing in your municipality with the simulator of the Ministry of City and Housing.

The Finance Act for 2026 amalgamates these two taxes, following an amendment introduced in the Senate. In the purpose of this amendment, it is specified that this merger is carried out « for the sake of simplification and legibility », because the cohabitation of the two taxes « leads to a certain confusion ».

As of the taxes established for the year 2027, the vacancy tax on residential premises will therefore apply, instead of the annual tax on vacant housing and the housing tax on vacant housing. This new tax will have to be paid by the owner or usufructuary of the real estate concerned (or by the lessee under construction or rehabilitation, or by the lessee of the leasingdepending on the situation).

In which municipalities will the new vacancy tax apply?

A distinction is maintained between territories marked by a significant imbalance between housing supply and demand, on the one hand, and territories that are not marked by such an imbalance, on the other. A decree will establish the list of municipalities located in a tense area.

In municipalities located in a tense area, the vacancy tax will apply automatically. A dwelling can be submitted as soon as it is vacant for at least one year at 1^er January of the taxation year.

In municipalities located outside a tense area, the application of the vacancy tax will be optional; municipalities and inter-municipalities may decide to introduce it following a deliberation. In municipalities and inter-municipalities making this choice, a dwelling will be subject to the tax if it has been vacant for at least 2 years at 1^er  January of the taxation year.

Different cases of exemption, applicable in all municipalities, are provided for. For example, the tax will not be payable when:

• the vacancy of the dwelling results from circumstances beyond the taxpayer's control (for example, a dwelling put up for rent or sale at market price, but not being taken or acquired);
• the dwelling has been occupied for more than 90 consecutive days, in the previous year in the communes located in a tense area, or in the previous 2 years in the other communes;
• the housing is owned by a housing organization with moderate rent (HLM).

How will the vacancy tax on residential premises be calculated?

The tax will be calculated on the basis of the cadastral rental value of the dwelling. This value corresponds to the annual rent that the property could produce if it were rented.

The amount of the tax will be obtained by multiplying the rental value by a tax rate.

In municipalities located in a tense area, this rate will be:

• 17% for the 1^re taxation year;
• and 34% for subsequent years.

By way of derogation, a municipality may establish a higher tax rate, following a deliberation by its municipal council. In any event, this tax rate may not exceed:

• 30% for the first taxation year;
• and 60% for subsequent years.

In municipalities outside a tense area, the tax rate will be set freely by decision of the municipal council, but may not exceed 50%.