Paris to Double Vacancy Tax on Empty Homes and Secondary Residences
Paris, April 15 – Emmanuel Grégoire, the newly elected Mayor of Paris, has announced a significant policy change aimed at addressing the city’s housing crisis. Grégoire plans to double the tax rate on vacant homes and increase taxation on secondary residences, with the new measures expected to come into effect in early 2027.
The announcement was made during the first City Council meeting on Tuesday, April 14, following Grégoire’s election. This move is a key part of his program to combat housing speculation and make more affordable housing available for Parisian families.
Tougher Measures Against Vacant Properties
“This is the time to sell vacant properties because it’s going to hit very hard,” Grégoire warned during a press conference on Thursday, April 9, which focused partly on housing issues. He emphasized that the high cost of living, rather than quality of life, is driving families out of Paris, stating, “Families are not leaving; they are being driven out by real estate speculation.”
Under the new proposal, the vacancy tax rate will increase from 17% to 30% of the cadastral rental value for the first year a property is vacant. For the second year of vacancy, the rate will jump from 34% to 60%. Currently, the tax amount ranges between 1,500 and 2,000 euros, according to Jacques Baudrier, Paris Deputy Mayor for Housing.
Targeting Secondary Residences
Beyond vacant homes, the new administration also intends to address the issue of secondary residences, which account for approximately 150,000 properties in the capital. The objective is to decouple the housing tax on secondary residences from the evolution of property tax, allowing for an increase in their taxation level.
According to the National Institute of Statistics and Economic Studies (Insee), there are 130,000 vacant homes in Paris, with “80,000 in structural vacancy.” Baudrier added, “According to the state, 36,000 homes have been vacant for more than two years in Paris.”
Opposition Concerns
The proposed measures have drawn criticism from the opposition in the city council. Aurélien Véron, a Paris councilor, argued that the measure is “threatening” to property owners, who already contribute “nearly four billion euros per year” in taxes.
The city’s move reflects a growing trend in other French cities like Annecy, Biarritz, and Royan, where mayors are also taking action against new secondary residences. This initiative is part of a broader effort to ensure that housing remains accessible and affordable for residents in high-demand urban areas.
The new regulations are expected to create a significant impact on the Parisian real estate market, encouraging owners of vacant properties to either sell or rent them out, thereby increasing the housing supply for permanent residents.
