Why Left-wing France loves its second home owners

Telegraph

29-04-2025

For a country focused on stifling wealth, it would be unsurprising of the French to penalise their property investors with hard-hitting taxes.
Yet for our nearest neighbours, second home ownership is a firmly embedded right.
A third of all homeowners in France – the equivalent of 9.7 million people – have at least two properties to their name, according to the National Institute of Statistics and Economic Studies (Insee).
It means around 10pc of the entire country's housing stock is a second home. The figure is in stark contrast to the share of additional residences in England, which comes in below 1pc.
Yet it's this side of the Channel where those with aspirations of owning more than one home are vilified.
Second home owners are accused of exacerbating the so-called housing crisis by blocking bricks and mortar opportunities for out-priced locals.
They now face punitive double council tax bills after local authorities were given the power to charge a 100pc premium on them from April 1.
The introduction of the tax across hundreds of English districts follows in the footsteps of Wales, where councils have been able to increase tax by as much as 300pc since 2017.
However, in France – where second homes litter villages and towns across Brittany, Normandy and the south – taxes are significantly lower.
Ross Irvine, financial director at William Russell, said: 'British residents are more accustomed to the escalating levies applied to second homes. France's approach, while not without its own nuances, is often gentler in comparison. In many rural or holiday regions, this surcharge remains modest or absent altogether.'
Around a 10th of French municipalities have the power to impose a surcharge on the normal residence tax (taxe d'habitation) for second homes. This can be anywhere from between 5pc to 60pc – a fraction of the amount allowed in Britain.
Vital Saint-Marc, of tax firm RSM France, said: 'To put it in perspective, a second home [in France] with a €1,000 [£851] base tax could face an additional €600 under the maximum rate.
'By comparison, council tax in England for an average Band D property often ranges from £1,500 to £2,000 annually – and then local councils are introducing doubled premiums on top.
'France's approach is often less financially punitive. The tone of debate is often more balanced.'
The levy is only permitted in housing-stressed areas known as 'zones tendues'. The majority of the country does not have the power.
Government figures show that of the 3,697 French communes granted surcharge powers, only 1,461 have introduced the levy.
In total, 539 have implemented the full 60pc, while 58 have brought in the lowest 5pc rate.
By comparison, all councils in England and Wales can charge second home owners more, with little proof required to show that second homes are creating hurdles for others trying to enter the housing market.
Hundreds of authorities have been accused of 'blindsiding' owners by quietly advertising the impending tax charge in a local paper.
Cracking down on second home hotbeds
It isn't all rosy, however. There is increasing pressure on policymakers to prioritise local residents.
Jacques Baudrier, the deputy mayor of Paris, has said second home ownership is 'out of control', with the capital 'haemorrhaging' properties used as a main residence.
New laws passed in November have strengthened the powers of mayors in areas with a high concentration of second homes and holiday lets.
Popular ski resort Chamonix has made use of the rules by banning the construction of new-build second homes. The outright ban will be enforced from May, in what is thought to be the first of its kind in the country.
This is similar to a growing trend in Britain, where varying local authorities are implementing measures to restrict or discourage second home construction.
Nearly a dozen villages in the Yorkshire Dales have been earmarked for planning regulations that would block new builds that are not permanently occupied.
The proposals, drafted by the Yorkshire Dales National Park Authority (YDNPA), would only allow homes to be built if they serve as a principal residence.
France also charges additional rates on second homes if they remain unoccupied. This is regardless of whether they are in a commune implementing the 5pc-60pc surcharge.
The 'taxe sur les logements vacants' or 'TLV' is targeted at properties left vacant for a year or more. Owners face rates of up to 17pc after the first year and up to 34pc after year two.
A third tax also exists. 'Taxe d'habitation sur les logements vacants' can be applied to unfurnished accommodation vacant for more than two years.
Non-French owners may also face an annual wealth tax (Impôt sur la Fortune Immobilière) if the total value of their property assets exceeds €1.3m.
Plan to move the British in
In a move poised to benefit the 60,000 Britons owning a second home in France, plans to overhaul visa rules are underfoot.
Currently UK passport holders may visit France for no longer than 90 days – approximately three months – every 180 days.
A separate longer visa of six months is used by British nationals with homes in France to get around the rules, however it can only be issued once in a year.
The French government is considering a proposal pushed by Martine Berthet, a French senator, to reduce the six-month period second home owners must wait before reapplying for the long-stay visa.
Bruno Retailleau, the French interior minister, said there would be a 'new and appropriate examination of the situation'.
Jeremy Savory, of wealth adviser Savory & Partners, said: 'Senator Berthet is trying to be even more accommodating to British owners.
'Since Brexit, the extra bureaucracy involved in staying beyond three months has proved problematic, and Berthet has seen the negative effect on the local economy in her Savoie constituency.'