On January 1, 2023, the housing tax on main residences was abolished. However, you remain liable for tax on your second homes. According to the official website of the public service, any person who owns or has usufructuary of furnished accommodation which is not their main residence must pay it. This could be your holiday home, a mobile home, an apartment rented out for holidaymakers or even company accommodation. It also applies to “immediate outbuildings of the accommodation (private parking, garage, etc.), even unfurnished and not attached,” specifies the government website.
If you have one of these properties, you are required to provide an occupancy declaration to the tax authorities, specifying whether you retain use of the accommodation. If this is the case, you will need to specify the nature of the residence: primary, secondary, or vacant. If your accommodation is occupied, you must specify the last name, first name, as well as the date, country, department and town of birth of the tenant.
“The housing tax on second homes is calculated based on the cadastral rental value of the home and its outbuildings,” explains the public service. This value corresponds to the annual rent that the residence could produce if it were rented. It is used to calculate local direct taxes: not only the housing tax on second homes, but also the property tax and the financial contribution of businesses (CFE). To calculate the tax, you must multiply this rental value by a tax rate which varies depending on the municipality.
Who is exempt from this tax on second homes?
According to the public service website, people who have left their main residence for a specialized reception establishment such as a retirement home or a long-term care center are not required to pay housing tax on second homes. for their former accommodation.
“If you return from expatriation following a call to leave your area of residence or a collective return operation (for example, in the event of a political or health crisis), you may be exempt from housing tax on secondary residences (THRS) on the accommodation which constituted your main residence in France before your expatriation”, specifies the site.
Also exempt from housing tax on second homes:
Be careful, however, if you have a student child. There are some subtleties to be aware of…
In 2023, several dependent children with student status wrongly received housing tax on their accommodation, considered a second home. According to Pleine Vie, some parents make mistakes when filling out their income tax return. If your child is housed in a Crous residence or other university residence, you must declare it to the tax authorities. “However, during the declaration, the owner of the accommodation declares the student as a tenant. Consequently, the tax administration will consider that the student’s accommodation is a secondary residence and not his main residence. It will be thus subject to housing tax”, specify our colleagues. You must therefore provide your child’s residential address when filing your income tax return.