In brief
Every owner of a home in France pays taxe foncière each year. The owner of a second home also pays taxe d'habitation sur les résidences secondaires, which some communes increase by up to 60%. Both are based on the property's cadastral rental value and on rates voted locally. If the net value of your French property exceeds €1.3 million on 1 January, you also owe the impôt sur la fortune immobilière (IFI). Rent from a French property is taxed in France. A gain on sale is taxed at 19% plus social charges, with relief that grows with the years of ownership.
This guide is general information, not tax advice. Rules change with each finance law; confirm your position with a tax adviser or your notaire.
The taxes at a glance
| Tax | Who pays | Basis | When |
|---|---|---|---|
| Taxe foncière | The owner on 1 January | Half the cadastral rental value, times local rates; refuse collection tax is billed with it | Notice sent in September |
| Taxe d'habitation sur les résidences secondaires | Whoever has permanent use of a furnished second home on 1 January | Cadastral rental value, times the commune's rate, plus any surcharge | Notice in the last quarter |
| IFI | Owners whose net French property exceeds €1.3 million on 1 January | Market value less allowable debts | Declared in spring with the income tax return |
| Tax on rental income | The owner who lets | Rent less allowances or costs | Declared each spring |
| Tax on capital gains | The seller | Gain after taper relief | Paid by the notaire on completion |
Taxe foncière
Taxe foncière is owed by whoever owns the property on 1 January, even if the home is sold later in the year or let to a tenant. The base is half the cadastral rental value set by the tax administration; the commune and intercommunal bodies vote the rates. The refuse collection tax appears on the same notice. On a sale, the deed often provides for the buyer to refund the seller a share for the months after completion.
Taxe d'habitation on second homes
Taxe d'habitation on main homes has gone; it remains on second homes. You owe it if, on 1 January, you have permanent use of a furnished home you can occupy at any time, whether as owner, tenant or free occupant.
Communes in areas with a marked housing shortage and communes with a high share of second homes may vote a surcharge of between 5% and 60% on the communal part of this tax. The surcharge depends on a council decision, so it varies from one commune to the next. Ask the local tax office for the rate before you buy. Afterwards, check the separate line on the notice.
IFI: the wealth tax on property
IFI applies when the net taxable value of your property assets exceeds €1.3 million on 1 January. A person whose tax home is outside France is taxed only on property and property rights in France, including the share of a company's value that represents French property (see buying through an SCI). Debts that relate to the property, such as the outstanding mortgage, are deductible. A main residence in France is valued with a 30% reduction; a holiday home is not.
| Net taxable value | Rate |
|---|---|
| Up to €800,000 | 0% |
| €800,001 to €1,300,000 | 0.50% |
| €1,300,001 to €2,570,000 | 0.70% |
| €2,570,001 to €5,000,000 | 1% |
| €5,000,001 to €10,000,000 | 1.25% |
| Above €10,000,000 | 1.50% |
Below €1.3 million no IFI is due. Between €1.3 million and €1.4 million a reduction applies: €17,500 less 1.25% of the net taxable value. As an example, a villa valued at €2 million with a €600,000 mortgage gives a net value of €1.4 million and an IFI of €3,200 for the year.
Rental income for non-residents
Rent from a French property is taxable in France, whatever your country of residence. For unfurnished lettings, gross rent up to €15,000 a year falls automatically under the micro-foncier regime, which allows a flat 30% deduction. Above that threshold, actual costs are deducted instead; you may also elect for this below it. Furnished and holiday lettings are taxed under different rules; see holiday letting rules.
A non-resident's French income is taxed at a minimum rate of 20% up to the upper limit of the second band of the income tax scale, €29,579 in the current scale. The rate is 30% above it. If you show that the French rate applied to your worldwide income would be lower, that lower rate applies instead.
Social charges are 17.2%. If you are affiliated to a compulsory social security scheme in another EEA country, Switzerland or the United Kingdom, you pay instead a solidarity levy of 7.5%.
Double tax treaties decide which country taxes what. Under the convention between France and Poland of 20 June 1975, income from property situated in France may be taxed in France; a Polish resident should ask a Polish tax adviser how Poland then treats it.
Capital gains when you sell
| Element | Rule |
|---|---|
| Income tax rate | 19% of the net gain |
| Social charges | 17.2%; a 7.5% solidarity levy instead for those affiliated to social security in the EEA, Switzerland or the United Kingdom |
| Taper relief, income tax | 6% a year from the 6th to the 21st year, 4% in the 22nd; exempt after 22 years |
| Taper relief, social charges | 1.65% a year from the 6th to the 21st year, 1.60% in the 22nd, 9% a year from the 23rd to the 30th; exempt after 30 years |
| Surtax | 2% to 6% where the taxable gain exceeds €50,000 |
| Payment | Calculated and paid by the notaire out of the sale price |
A main residence is exempt, but a holiday home is not. Non-residents have specific rules, including a possible exemption of up to €150,000 for former French residents and the need, in some cases, for an accredited tax representative. These are set out in capital gains for non-residents.
Planning ahead
- Ask the seller for the latest taxe foncière and taxe d'habitation notices before you sign, so that you know the annual cost.
- Keep every invoice for works by registered businesses: they can reduce a future taxable gain.
- Decide before you buy whether you will let the home, since this affects the ownership structure; see own name or SCI.
- If you are near the IFI threshold, remember that the mortgage is deductible but cash in the bank is not taxed by IFI at all.
- Think about succession from the start; see inheritance and French property.
For the costs at purchase see buying costs in France. For terms you meet on tax notices see the glossary.
Frequently asked questions
Do I pay taxe d'habitation on a holiday home in France?
Yes. Taxe d'habitation now applies only to second homes and similar premises. You owe it if you have permanent use of the furnished home on 1 January. Some communes add a surcharge of up to 60%.
Who pays the taxe foncière in the year of purchase?
The seller receives the bill, because the tax is owed by whoever owns the property on 1 January. The deed often provides for the buyer to refund the seller a share for the rest of the year.
Is a non-resident liable to IFI?
Only if the net value of their property in France exceeds €1.3 million on 1 January. Property outside France is not counted for a non-resident. Debts relating to the French property are deductible.
How is rental income from a French villa taxed if I live abroad?
It is taxed in France at a minimum rate of 20% up to the upper limit of the second band of the income tax scale and 30% above, unless your average rate on worldwide income is lower. Social charges of 17.2% are added; the rate is 7.5% for those covered by social security elsewhere in the EEA, Switzerland or the United Kingdom.
How much tax will I pay when I sell my second home?
19% income tax and 17.2% social charges on the gain, reduced by taper relief from the sixth year of ownership. The social charges fall to 7.5% if you are covered by social security elsewhere in the EEA, Switzerland or the United Kingdom. A surtax applies to gains above €50,000.
Are there taxes when I buy?
Yes: transfer duties and the notaire's fees, paid once on completion. See buying costs in France.
Last updated: 11 October 2026