Since the elimination of the property tax on primary residences in 2023, many questions remain about the remaining local taxes. To help the French, the consumer association UFC-Que Choisir published a practical guide to help homeowners and landlords limit their local tax bill. The topic is far from trivial: it concerns thousands of homes in France, and sometimes substantial sums.
So, what are the legal strategies to reduce or contest these taxes? Are all vacant dwellings automatically taxable? And how can you check whether your municipality has implemented these taxes? Through this article, you will first understand the current tax regimes (THRS, TLV, THLV) and their conditions. Then, the ways to reduce or avoid them depending on your situation. The goal: that you can act with confidence, without paying more than the law requires!
Understanding Local Taxes: THRS, TLV, THLV
The housing tax on secondary residences (THRS) applies to furnished properties you own in addition to your primary residence. However, only if these properties meet the occupancy conditions. It is due even if you do not regularly occupy the dwelling, as long as it is ready to be inhabited. UFC-Que Choisir notes that some furnished homes lacking sufficient furniture may be exempt from this imposition.
In addition, there are the tax on vacant dwellings (TLV) and the housing tax on vacant dwellings (THLV), which concern homes that have been unoccupied for a certain period. In tight housing zones, the TLV can apply as soon as a property has been vacant for one year. And in subsequent years, the rate can climb to 34%. In municipalities not covered by TLV, the THLV can be enacted by municipal deliberation to tax vacant dwellings for at least two years.
These taxes are based on the property’s rental value, and are proportional to the local rates set by the municipality. Their application varies greatly depending on zoning, municipal decisions, and the property’s situation. The devil is in the details.
What strategies exist to reduce or contest these taxes
To start, check with your town hall or local tax office to see whether the THRS surcharge or TLV has been adopted in your municipality or in a tight housing zone. Many property owners are unaware that their property is subject to these additional taxes. UFC-Que Choisir recommends confirming that your property is truly furnished, since a dwelling with insufficient furniture may be exempt from THRS.
For vacant properties: if the dwelling has been unoccupied for reasons beyond your control (renovations, sale attempts without success, etc.)… You can request a reduction or exemption from TLV or THLV. If you live in the dwelling for part of the year (at least 90 consecutive days), provide the necessary supporting documents (bills, rent receipts) to prove occupancy. This can nullify or reduce the tax.
Reducing your local tax is not a trick of illusion; it requires knowing your rights, acting in a timely manner, and checking municipal decisions. Between THRS, TLV, and THLV, the tax toolkit can seem complex… But there are many levers for reducing it:
- Demonstrate involuntary vacancy,
- Prove partial occupancy,
- Submit a claim or appeal,
- Master the declarations.
UFC-Que Choisir emphasizes that these steps are not minor: they can lead to substantial savings for property owners. So, go for it!
