[REVISION HISTORY]

France: Tightening rental rules, vacancy taxes & energy laws

Updated 5 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-18 06:38 UTC → 2026-08-19 09:55 UTC · added ~~removed~~

France’s housing policy continues to tighten regulations on short-term rentals and vacant properties while emphasizing energy efficiency. In May 2026, the government introduced a draft law to curb tax avoidance in short-term rentals, targeting higher registration requirements and penalties to level the field between professional hotels and private hosts. This follows Nice's June 2026 overhaul, which extended primary residence rental limits to 120 days and capped tourist-type units in high-pressure districts. The rental market is facing significant fiscal shifts. The 2026 budget proposes major changes to the Loueur en Meublé Non Professionnel (LMNP) regime, reducing tax advantages and introducing new income taxes. Concurrently, the government is considering extending rent-control experiments beyond November 2026. Regarding property taxes, a 0.8% automatic revaluation of rental values applies to the 2026 taxe foncière, though local municipalities retain authority to set specific rates. ~~Additionally, residence~~ Property tax notices for ~~secondary residences has seen significant increases,~~ 2026 are scheduled for release starting August 27, 2026, for non-monthly payers, with ~~surcharges in high-demand areas reaching up to 60%.~~ payments generally due by October. To address chronic shortages, Paris has approved an increased vacant-housing levy effective January 2027. The city will apply maximum authorized tax rates of 30% for the first year of vacancy and 60% for subsequent years, targeting approximately 20,000 unoccupied units. Additionally, the municipal government has set an objective to reduce real estate prices by 20% to improve accessibility. Demand for rentals exceeds supply by 18%, a shortage exacerbated by energy efficiency regulations that prohibit ‘G’ rated housing and will phase out ‘F’ rated properties by 2028. New regulatory requirements mandate that landlords provide a complete Technical Diagnostic Dossier (DDT) before signing a lease. Furthermore, a decree issued on August 4, 2026, reforms the social and financial diagnosis (DSF) used in eviction proceedings to accelerate support mechanisms by triggering the diagnosis as soon as a formal command to pay is issued. To encourage private investment, the 2026 finance law established the ‘Jeanbrun’ status, allowing investors to deduct a portion of property costs from taxable income if they rent to low-income tenants at below-market rates for at least nine years. mechanisms.

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