There are around 3 million empty homes in France, representing 8.4% of the housing stock. It is a number that has grown significantly over the past 30 years and which has contributed to the rise in house prices.

In order to try and combat the problem, in 1999 the government introduced a tax on empty homes (TLV), which was extended in 2007 by the introduction of a second tax (THLV).

The two taxes are:

• La taxe annuelle sur les logements vacants (TLV)
• La taxe d’habitation sur les logements vacants (THLV)

Until 2023 this tax concerned only municipalities with more than 50,000 inhabitants in areas of housing stress.

However, a new law now includes all municipal areas where there is an imbalance between supply and demand, mainly those in tourist areas on the coast and in mountain areas.

As a result, the number of communes where the tax applies (2024) has risen from around 1,000 to over 3,000.

These are the same communes which are entitled to impose a surtax on the taxe d'habitation of second homes.

The list of communes can be found at Décret n° 2023-822 du 25 août 2023.

The proceeds from the tax are not inconsiderable, generating over €60m a year, which will rise in the future.

An owner must pay the tax if the property has been vacant for at least 1 year on 1st January of the year of imposition.

The tax is based on the notional rental value of the dwelling. It varies according to the length of time the accommodation is vacant:

• 17% the first time the dwelling is taxable;
• 34% in subsequent years.

However, a property is exempt from the tax if it is in the process of sale or letting.

Similarly, where the dwelling was occupied for more than 90 consecutive days in the year, or the property requires major work to be habitable (which must exceed 25% of the value of the property) the tax would not apply.

Finally, it does not apply if the property is a furnished second home on which the taxe d’habitation is paid.

With the introduction this year of the occupancy declaration an owner must declare the status of a property annually, notifying the tax authority of any changes.

This tax can be introduced in all municipalities where the TLV does not apply.

The tax is payable by owners of a residential property which has been empty for more than two consecutive years on 1st January of the tax year.

The tax rate corresponds to the taxe d’habitation of the municipality.

As with the TLV, dwellings inhabited for more than 90 consecutive days in the year, involuntary vacancy (the owner is looking for a tenant or a buyer), requiring major work to be habitable (more than 25% of the value of the property) and furnished second homes subject to housing tax are not concerned by the THLV.

If you are affected by these taxes, you will receive a notice telling you how much tax you have to pay.