France Second-Home Tax 2026: What Expat Property Buyers Need to Know

If you're an expat dreaming of owning a second home in France, recent political signals from Paris suggest you may face higher costs starting in 2026. In June 2026, a Paris deputy mayor publicly labeled second homes as 'the enemy' and called for stricter property tax laws. While not yet law, this rhetoric reflects a growing trend across French cities to curb holiday homes and prioritize residents. This guide explains what's happening, how it could affect you, and what practical steps you can take now.

Why French Cities Are Targeting Second Homes

France has long been a top destination for expat second-home buyers, especially in Paris, Nice, and the Alps. However, housing shortages and rising rents have pushed local governments to act. The Paris deputy mayor's comments in 2026 echo measures already seen in places like Biarritz and Annecy, where second-home taxes have been hiked by up to 60%. The goal is to free up housing for permanent residents and cool price inflation. For expats, this means the days of cheap second-home ownership in popular areas may be ending.

Proposed Tax Changes for 2026

While no federal law has passed, the Paris proposal suggests three key changes: (1) Increasing the taxe d'habitation sur les résidences secondaires (second-home property tax) from 20% to 40% in high-demand zones. (2) Adding a new 'vacancy tax' for homes used fewer than 90 days per year. (3) Requiring owners to register usage annually. If enacted, this could add thousands of euros annually to your costs. Similar laws already exist in Paris, but the 2026 push aims to expand them to more areas.

How Expat Buyers Are Affected Today

Even without new laws, expats face existing taxes: taxe foncière (land tax), taxe d'habitation (if the home is furnished and not your primary residence), and potentially a wealth tax if your global assets exceed €1.3 million. Non-resident owners also pay a 20% flat tax on rental income. In 2026, local municipalities can already increase the taxe d'habitation sur les résidences secondaires by up to 60% in 'tight housing markets'—a list that now includes over 1,000 communes. Check if your target area is on this list before buying.

• Tip 1: Research the 'zonage' map on the French government's service-public.fr site to see if your target commune has already raised second-home taxes.
• Tip 2: Consider buying in less popular regions like Nouvelle-Aquitaine (outside Biarritz) or Auvergne-Rhône-Alpes (away from Annecy) where taxes remain lower.
• Tip 3: Consult a French notaire or tax advisor before signing—they can model your annual costs under current and proposed laws.

Alternatives to Second-Home Ownership

If new taxes make ownership too expensive, consider long-term rentals (e.g., 12-month leases in Paris) or fractional ownership schemes. Many expats now opt for 'co-ownership' with other families to split costs and usage. Alternatively, buy a home in a less regulated city like Lyon or Montpellier, where second-home taxes are still moderate. For those set on Paris, renting out your second home for at least 30 days per year to tourists can offset taxes, but check Airbnb regulations—Paris caps short-term rentals at 120 days per year.

Practical Action Steps for 2026

Here's a checklist to protect your investment: (1) Verify your property's current taxe d'habitation rate with your mairie (town hall). (2) Set aside a budget for potential tax increases—plan for at least 20% more annually. (3) If you're a non-resident, ensure you have a tax representative in France (required for non-EU owners). (4) Monitor local news for your commune's 2026 budget votes—tax increases often pass in late fall. (5) Consider converting your second home to your primary residence by moving to France for at least 8 months per year, which exempts you from higher taxes.

Frequently Asked Questions

Will the new second-home tax apply to all of France in 2026?

No, the Paris proposal is local, but similar measures are spreading. Currently, only communes in 'tight housing markets' (zone tendue) can increase the tax. Check if your target area is on the official list—over 1,000 communes, including Paris, Nice, and Bordeaux, already qualify.

Can I avoid the tax by renting out my second home?

Partially. If you rent it out as a furnished rental for at least 90 days per year, you may qualify for professional status, reducing your taxe d'habitation. However, short-term rentals like Airbnb face strict limits in Paris (120 days max per year) and may trigger additional registration fees.

What happens if I don't pay the new tax?

French tax authorities are strict. Non-payment can lead to penalties of 10% per year, property seizure, and a ban on buying future property in France. Always pay on time or request a payment plan from the Centre des Impôts.

Is buying a second home in France still worth it in 2026?

Yes, if you choose your location wisely and budget for higher taxes. Regions like the French Riviera (away from Nice) and the Loire Valley still offer lower costs. For Paris, consider renting instead. Consult a local notaire for a personalized cost-benefit analysis based on your situation.