Paris, August 2, 2026 – In a significant move to combat the housing shortage, the Paris City Council, on July 18, 2026, approved the implementation of a surtax on vacant residential properties. This measure, effective from January 1, 2027, aims to encourage owners to either rent or sell their unoccupied homes, with a target of returning 20,000 properties to the market.
New Tax Replaces Previous System and Doubles Rates
This new tax replaces a previous vacant housing tax that had been in place since 1999. The key difference is that the revenue generated from this new tax will now directly benefit the municipalities and inter-municipalities that apply it. The principle behind the tax is straightforward: a property that has been vacant for at least one year in a municipality where housing supply does not meet demand becomes taxable. The calculation is based on the cadastral rental value of the property, without any deductions.
While the law initially set default rates at 17% for the first year of vacancy and 34% from the second year onwards, it also granted municipalities the flexibility to increase these rates. The City of Paris has opted to activate this option, raising the rates to 30% for the first year and a substantial 60% from the second year of vacancy. This decision was formalized by a resolution presented to and adopted by the Paris City Council on July 16, 2026.
Significant Financial Impact on Owners of Vacant Properties
The financial implications for owners of vacant properties are considerable. For instance, the owner of a 30 m² empty apartment in the 17th arrondissement, who previously paid an estimated tax of 790 euros, will now face a bill of 1,400 euros in January 2027. This amount will further increase to 2,800 euros from 2028 if the property remains vacant.
According to INSEE data, 139,075 housing units in the capital are currently vacant (excluding secondary residences), representing approximately 10% of all Parisian homes. This new tax is a direct response to the growing phenomenon of housing vacancy and the city’s strong advocacy, alongside other municipalities, for more efficient regulatory tools to address this issue.
Support for Owners and Exemptions Remain
The City of Paris acknowledges that some properties may be vacant due to circumstances beyond the owner’s control. These situations include properties tied up in legal or inheritance procedures, those requiring extensive renovations to be habitable, or properties genuinely on the market for sale or rent at market price but unable to find a buyer or tenant. In such cases, existing exemptions will be maintained. Owners in these situations are advised to declare their status via the “Gérer mes biens immobiliers” (Manage my real estate) portal on the tax website.
The primary objective of the City of Paris is to ensure that these vacant homes once again welcome Parisians. To this end, the city offers various support schemes for owners of vacant properties. These programs can assist with financing renovation work or finding tenants while providing guarantees. Detailed information on these solutions can be found in a dedicated article on the city’s website.
Addressing the Housing Crisis: A Collaborative Effort
This initiative by the City of Paris highlights a broader effort to address the housing crisis and ensure that available housing stock is utilized efficiently. By incentivizing owners to bring vacant properties back into use, the city aims to alleviate pressure on the rental market and provide more housing options for its residents.
The implementation of this surtax is a direct outcome of the Finance Law for 2026, which paved the way for a new local tax targeting vacant residential properties. This legislative change empowers local authorities like Paris to take decisive action against housing vacancy, reflecting a growing national concern over the optimal use of residential real estate.
The City of Paris continues to engage with property owners, offering guidance and support to facilitate the reintegration of vacant properties into the housing market. This collaborative approach underscores the city’s commitment to fostering a more equitable and accessible housing landscape for all its inhabitants.
Source: https://www.paris.fr/pages/logements-vacants-la-ville-de-paris-adopte-une-surtaxe-pour-remettre-20-000-biens-sur-le-marche-35790
