Quick answer: France taxes all British-owned second homes annually via taxe foncière (land tax) and taxe d'habitation sur les résidences secondaires or THRS (residence tax on second homes). Many coastal and urban areas add a 5-60% surcharge. Holiday let owners must register but still owe all taxes. The 90-day Schengen limit applies to stay duration.
Key Facts
| Fact | Detail |
|---|---|
| Jurisdiction | France, all communes |
| What changed | Post-Brexit clarification of tax obligations for British second-home owners; 2024 Conseil d'État ruling on holiday let taxation |
| Who it affects | All British owners of residential property in France, including holiday lettings and short-term rentals |
| Status | In force |
| Effective date | Taxe foncière and THRS apply annually; Conseil d'État ruling published 23 December 2024 |
| Penalties | Unpaid taxes accrue interest and penalties; incorrect occupation declarations trigger wrong tax assessments |
| Governing body | French tax authority (Impôts); communes vote local tax rates; Conseil d'État (supreme administrative court) |
What Changed
France applies two annual property taxes to all British-owned second homes, regardless of residency status after Brexit, according to kohenavocats.fr. The taxe foncière (land tax on built property) is assessed under Article 1380 of the Code général des impôts and applies to every owner recorded on 1 January of the tax year. The taxe d'habitation sur les résidences secondaires (THRS or residence tax on second homes) is assessed under Article 1407 and applies to all furnished dwellings used as a second residence.
In tight housing zones (zones tendues) defined by statute, communes may add a surcharge of 5% to 60% on top of the THRS, under Article 1407 ter. Paris, the Paris inner region, the Basque coast, much of Brittany's shoreline, the Alps and major Mediterranean resorts are all designated tight housing zones.
On 23 December 2024, France's supreme administrative court, the Conseil d'État (case number 492174), ruled that owners of tourist gîtes (furnished holiday cottages) and short-term rental properties must pay THRS if they retain any disposal or use of the property on 1 January, even if the property is let most of the year. The court stated that keeping control of the booking calendar equals keeping disposal of the property.
Who Is Affected
All British owners of residential property in France face the taxe foncière. All British owners of furnished second homes, including holiday lettings and short-term rentals, face THRS. The Conseil d'État ruling directly affects owners who let properties seasonally or for short stays through online platforms while retaining the right to accept or refuse bookings.
An owner is liable for the full year's tax based on property ownership on 1 January, even if the purchase or sale occurs mid-year. Relief exists only for modest owner-occupiers of a main residence, not second-home owners. Paris apartments and properties in coastal or alpine areas are most likely to be subject to the 5-60% surcharge.
Exemptions are rare. Only premises fitted out and reserved exclusively for letting (with no personal use rights retained) may escape THRS. Temporary two-year relief on new houses exists in some communes but is never automatic.
What Hosts Should Do Now
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Create a French online tax account at impots.gouv.fr immediately after purchase completion, as all tax demands are now paperless.
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Check the cadastral description of your property for errors in floor area, outbuildings or amenities, and challenge any errors before the tax bill arrives in autumn, as the valeur locative cadastrale (notional rental value) determines the tax base.
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File the déclaration d'occupation (occupation declaration) online before 1 July of any year the property status changes, stating whether it is a second home, holiday let or other use, as incorrect declarations trigger wrong tax calculations.
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Review the tax bill (avis d'imposition) line by line each autumn, comparing it to the prior year and identifying whether changes come from rate votes, revaluations or administrative error; sudden jumps warrant formal objection.
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Distinguish between tax and holiday let registration, as registering a holiday let does not exempt you from any tax, and paying taxes does not authorise tourist lettings; keep the two channels separate.
The Bigger Picture
British second-home ownership in France has become more complex since Brexit. Owners are now third-country nationals subject to the 90-day Schengen limit on continuous stays, yet France's tax system treats French property exactly as before, with no exemption for non-residents. The system is interconnected: a mistake on the tax front often triggers a bill on another, and the demands of the tax office and the town hall are separate but both binding.
The 2024 Conseil d'État ruling clarifies that holiday let owners cannot use their letting activity to avoid THRS. Instead, the very fact of controlling the booking calendar proves they retain disposal of the property and must pay the tax. Only properties fitted out and reserved exclusively for letting, with no personal use rights, escape this obligation. This ruling affects thousands of British buyers who purchased cottages and apartments hoping to let them to tourists while minimizing tax exposure.
Frequently Asked Questions
Do I pay property tax on a second home in France as a British owner after Brexit?
Yes. The taxe foncière (land tax) applies to all built property in France regardless of the owner's nationality or residency. Brexit changed your right to stay in France, not the tax charge on French land and buildings. According to kohenavocats.fr, every owner recorded on 1 January of the tax year pays the full year's tax, even if you purchase or sell mid-year.
Do I have to pay residence tax (THRS) on a holiday let in France?
Yes, unless the property is fitted out and reserved exclusively for letting with no personal use rights retained. In a 2024 ruling, France's supreme court held that owners of holiday cottages and short-term rentals owe THRS if they retain any disposal or use of the property on 1 January, even if let most of the year. Keeping control of the booking calendar equals keeping disposal of the property.
Can I get a surcharge waiver on second-home tax in tight housing areas?
The 5% to 60% surcharge on THRS in tight housing zones (Paris, coastal and alpine areas) offers three narrow doors out by formal objection, according to kohenavocats.fr, but these are restricted. Reliefs aimed at modest owner-occupiers do not apply to second-home owners. Check the back of your tax bill (avis d'imposition) to see if a surcharge applies.
When do I file the occupation declaration for my French second home?
File the déclaration d'occupation online before 1 July whenever the property has never been declared or the status has changed since the last declaration. File it in the Gérer mes biens immobiliers section of your impots.gouv.fr account. Getting the status wrong, for example leaving a holiday cottage declared as vacant when you use it, triggers the wrong tax calculation automatically.
What should I do if my French property tax bill suddenly increases?
Review the avis d'imposition line by line and compare it to the prior year. A sudden jump usually comes from a rate vote, a revaluation or an administrative error. Check the cadastral description for errors in floor area or outbuildings, keep your completion deed and previous bills, and challenge errors before the deadline, as only paperwork lets you tell which cause applies.
Sources
- British Second Home in France After Brexit: Annual Property Taxes, the 90-Day Cap, Holiday Lets and How to Challenge the Bill, kohenavocats.fr
- Official source
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