Taxes for foreign owners of a second home in France

The taxe foncière is one of the most significant ongoing costs for property owners in France. Here's what you should know:

• It is paid annually by the owner – regardless of their place of residence. More precisely: it is paid by the owner who possesses the property on January 1st of the relevant year. In the year of purchase, the tax is divided pro rata between the seller and buyer by the notary.
• You will receive your tax assessment notice every year in October; it is usually sent to your main residence.
• The amount depends on the municipality and the cadastral value (valeur locative cadastrale).
• The tax varies greatly depending on the region and can be particularly high in tourist areas.

While the taxe d'habitation for primary residences was abolished in 2023, it still applies in full to secondary residences – and thus affects almost all international buyers. Key points:

• The tax is levied on the user of the property on January 1st – in the case of second homes, this is usually by the owner himself.
• The basis is also the cadastral value determined by the tax authorities, plus surcharges from municipalities in popular regions.
• While the taxe foncière is communicated at the time of purchase, you will only find out the actual amount of the taxe d'habitation with the first assessment notice, especially if you are buying a property that was previously used as a main residence.

The Impôt sur la Fortune Immobilière (IFI) only applies to owners with substantial real estate assets. Key facts:

• Applies to net real estate assets exceeding €1,300,000.
• Only real estate assets count, e.g. houses, apartments or shares in real estate companies.
• Mortgages and loans can be deducted.
• The tax is progressive and starts at an effective entry rate of around 0.5%.
• Even non-residents must pay IFI if their French real estate assets exceed the threshold.