France implements new unified tax on vacant housing

A new decree clarifies the implementation of the ‘taxe sur la vacance des locaux’ (tax on vacant premises) in France. Starting January 1, 2027, this single tax will replace both the annual vacant housing tax (TLV) and the residence tax on vacant housing (THLV).

In high-demand areas (zones tendues), the tax is mandatory. In other regions, local authorities have the discretion to implement it. A property is considered vacant if it remains unoccupied for one year in high-demand zones or two years in other areas, provided it meets minimum comfort standards and is insufficiently furnished. Owners may avoid the tax if they can prove the property was occupied for more than 90 consecutive days or if vacancy is due to circumstances beyond their control, such as major renovations or failed sales/rentals.

Tax rates are based on rental value, set at 17% for the first year and 34% for subsequent years in high-demand zones. Local authorities may increase these rates by up to 30% in the first year and 60% in following years, while the cap in other zones is 50%.

In Saint-Dizier, local officials have already moved to vote on the implementation of this tax to meet the October 1, 2026, deadline for non-high-demand areas.