This little-known local tax is spreading to new towns and many households are unaware that they are liable for it.
A little-known local tax is gaining momentum in France. This year, it will affect an increasing number of households. Owners are particularly concerned. This is neither the property tax nor the housing tax on second homes, but the tax on vacant housing (TLV). According to INSEE, 3.1 million homes, or 8% of the national housing stock, are subject to this tax. All owners of these goods will have to checkout.
However, too many owners are still unaware that they will have to pay this local tax. In fact, the number of people liable for TLV is higher this year. Some individuals who have never paid this tax will have to pay it for the first time. They will find out by checking their mailbox, because the tax notices are sent this month.
If more people are subject to TLV this year, it is because this local tax is applied in so-called “tense” areas. These zones bring together municipalities where there is an imbalance between supply and demand for housing. Until 2023, only large cities were affected. However, since 2024, the definition of tense areas has been broadened to include all municipalities in rental tension, as well as those with a high proportion of second homes.
This expansion of the areas concerned has led to a significant increase in the number of municipalities applying the TLV. In 2023, just over 1,100 municipalities were affected. By 2024, this number will triple, reaching 3,697 cities. As a result, the number of owners potentially liable for this tax has also increased.
At the same time, the TLV experienced several consecutive increases. Its calculation is based on the cadastral rental value (CV) of housing, which is revalued each year according to inflation. Thus, in 2023, the TLV increased by 7.1% while this year, it saw an increase of 3.9%. Concretely, the amount of the TLV corresponds to 17% of the cadastral value of the property for the first year of vacancy. From the second year of vacancy, the amount of the TLV increases to 34%.
To pay the TLV, taxpayers must respect a specific timetable. People wishing to use a physical payment method (check, transfer or cash) have until December 16, 2024. Taxpayers preferring payment by Internet or debit at maturity from the bank account must pay the bill before December 21 . In the latter case, the account will be debited on December 27.
To identify owners liable for TLV, the tax authorities now have a powerful tool: the declaration of real estate. Owners must update it each year before July, specifying in particular the identity of the occupants and the duration of occupation of their property. If they declare accommodation without mentioning a resident on January 1 of the previous year (here the year 203), then they will have to pay, in 2024, the TLV.
