Paris strengthens the tax on empty homes: what will change for owners

Behind this political announcement, the consequences can be very concrete for owners. Because the TLV is not based on the amount of the rent but on the cadastral rental valuea tax base calculated by the administration. According to the simulation carried out for Capital by Maître Dantil, tax lawyer interviewed by Capitala vacant studio 20 m² could already cost up to 2,400 euros annual tax after two years of vacancy.

Small apartments that can cost several thousand euros

Concretely, an owner who voluntarily leaves bare accommodation unoccupied for more than a year in a tense area like Paris can quickly see the bill explode. The tax concerns housing unfurnishedhabitable and vacant for at least one year at January 1 of the tax year. Furnished accommodation falls under the housing tax on second homeswith a different diet.

To illustrate this increase, Master Dantil carried out a simulation on a Parisian studio of 20 m² displaying a cadastral rental value of 4,000 euros. With a rate raised to 30%the tax would already reach 1,200 euros after a year of vacation. After two years, with a rate of 60%it would climb to 2,400 eurosexcluding property tax. With larger areas or properties located in sought-after areas, the bill can quickly soar. “2,400 euros just in taxes excluding property tax for 20 m² not occupied, this quickly becomes dissuasive”underlines Master Dantil.

Blocked estates and housing under construction: the main sensitive cases

However, not all vacant housing is automatically taxed. The law provides for several cases of exemption when the vacancy is beyond the owner’s control: major work, housing put up for sale without finding a buyer at the market price, illegal occupation by squatters or even certain complex inheritances. In fact, certain family joint ownerships become real tax traps.

Between disagreements between heirs, apartments kept awaiting a decision or housing requiring major work, certain properties remain vacant for several years without any real speculative logic. But in practice, the burden of proof rests largely on the owner. “We really need to be able to establish the burden of proof”insists Master Dantil. Electricity bills, work quotes, real estate advertisements or bailiff’s reports can become essential in the event of a tax audit.

The 90-day threshold, a little-known trap for owners

Another point often ignored: simple one-off occupation of the accommodation is not necessarily enough to avoid TLV. The property must have been occupied for more than 90 consecutive days over the reference period. “A temporary occupation of less than 90 days does not call into question the vacant nature of the accommodation”recalls the tax specialist.

The Paris town hall hopes to put back approximately 20,000 housing units on the market thanks to this fiscal tightening. But some owners could continue to hold on to their properties despite the increasing cost of vacancy. “Often people are ready to pay the charges rather than sell”observe Master Dantil. As Paris tightens its real estate taxes, voluntarily leaving a home empty becomes less and less economically sustainable.