Tax on vacant dwellings: Our complete guide

---

Are you the owner of a property that has been unoccupied for some time? Without a clear declaration of your situation, you may receive a tax on vacant dwellings. Who is affected? How much does it cost? And most importantly, how can you avoid this tax or challenge it if it’s unjustified?

Your real estate agency Winter Immobilier helps you get a clearer picture: applicable rules, common mistakes, practical solutions... Here's everything you need to know to avoid unpleasant surprises from the French tax office.

What is the tax on vacant dwellings?

Do you have an empty property? Be aware, it may be subject to one of two taxes targeting unoccupied homes:

• TLV (Taxe sur les Logements Vacants): applied in "zones tendues" (high-demand areas where housing is scarce).
• THLV (Taxe d’Habitation sur les Logements Vacants): applied locally by certain municipalities outside TLV zones.

The aim? To discourage keeping properties empty in areas where housing is hard to find for residents.

If your property has been vacant for more than one year (TLV) or two years (THLV), and is not exempt, you may receive a tax notice even if you haven’t taken any action.

Which properties are subject to these taxes?

TLV

The TLV applies to unfurnished residential properties that have been vacant for at least one year as of January 1st of the tax year.

Not all vacant properties are affected; the TLV applies only in so-called "zones tendues", i.e. municipalities where housing demand far exceeds supply, and rental prices are high.

The list of municipalities subject to the tax on vacant dwellings is set by decree. In 2025, this includes 46 main urban areas and over 2,000 tourist towns.

THLV

When a municipality is not located in a "zone tendue", it or its intercommunal structure (EPCI) may still decide to implement its own tax: the THLV.

The principle is similar to the TLV, but the required vacancy period is longer: at least two consecutive years as of January 1st of the tax year.

Here is a summary table of the types of properties affected by either of the two taxes:

Criteria	Subject to TLV / THLV?	Exempt?
Vacant, unfurnished for 1 year (in a "zone tendue")	TLV	No, unless valid justification
Vacant, unfurnished for 2 years (outside "zone tendue")	THLV	No, unless valid justification
Furnished property (secondary residence)	No	Yes, subject to housing tax
Undergoing major renovations (> 25% of value)	No	Yes, with supporting documents
Listed for sale or rent without success	No	Yes, with proof of listings
Occupied more than 90 days per year	No	Yes, considered sufficiently occupied
Uninhabitable or unsafe property	No	Yes, with official notice or risk order
In joint ownership or inheritance process	TLV or THLV, depending on the area	Possible 2-year exemption (inheritance)

Focus on Nice: a historically affected city

Nice has been one of the first cities affected by the TLV since its creation. Classified as a "zone tendue" from the outset, the city is under close watch due to persistent housing pressure, worsened by second homes and tourism.

As a property owner in Nice, you are therefore automatically subject to the TLV if your property has remained unoccupied for more than one year without valid justification. Even a property "awaiting renovation" or "soon to be rented" must be properly declared to avoid automatic taxation.

What is the amount of the TLV and THLV?

The tax on vacant dwellings is calculated based on the property’s cadastral rental value, i.e. the estimated annual rental value determined by the French tax administration. This base is the same as for the housing tax and is adjusted yearly for inflation.

The applicable rate depends on the length of vacancy:

• 17% for the first year of taxation (after one year of vacancy)
• 34% from the second consecutive year onward

An additional 9% is charged for administrative fees.

For the THLV, the principle is the same: the tax is calculated on the same base, but the rate varies depending on the municipality's decision.

Example: Consider an apartment in Nice with a cadastral rental value of €4,500. If it has been vacant for three years, the 34% rate applies. The tax due would be €1,530 (€4,500 × 34%), plus 9% in administrative fees, i.e. €137.70. The total amount payable is €1,667.70, and this amount will be due again each year as long as the property remains vacant.

How to avoid paying the vacant property tax?

The best way to avoid the vacant property tax (TLV or THLV) is simple: make sure your property is not considered vacant by the French tax administration.

Here are the main exemption or avoidance cases:

• The property is occupied more than 90 days per year: this is sufficient for it not to be considered vacant. Be sure to keep proof (bills, rental agreements, etc.).
• The property is listed for rent or sale at market price: you must provide evidence of active efforts (ads, agency mandates, etc.) and show that no one is interested despite these efforts.
• The property is awaiting occupancy: a tenant or buyer has signed but not yet moved in. Provide the contract or sales agreement as proof.
• The property is undergoing significant works: structural, electrical, plumbing, heating, etc. The cost must be at least 25% of the property's value. Provide quotes or invoices.
• The property is deemed unfit or hazardous: you may be exempt with an official unsanitary or danger order.
• The property is part of an inheritance: heirs benefit from a 2-year exemption after the owner's death. Make sure to submit supporting documents.
• The property is a furnished secondary residence: this is subject to housing tax, not the TLV.
• The property is owned by a public housing body (HLM) or is public property: such properties are not affected by the TLV.

Winter Immobilier’s advice: If your property in Nice is temporarily vacant but meant for rental, entrust it to our agency! We provide documented proof of your efforts (listing, rental management, admin tracking…), which is strong evidence in case of a TLV dispute. An extra layer of security to prevent unfair taxation!

Declaration of the vacant property tax

Vacant property taxes are automatically calculated by the French tax administration. That’s why it’s essential to properly declare your property’s status via your online account.

How to declare a vacant property to avoid the tax?

• 1. Log in to your personal space on impots.gouv.fr.
• 2. Go to the "Manage my real estate" section.
• 3. For each owned property, indicate its status as of January 1st: Main residence, Secondary residence, or Vacant (unfurnished and unoccupied).

Submit this declaration before July 1st if:

• The property hasn’t been declared yet
• Changes have occurred (new tenant, sale, change of status…)

Failure to declare or providing incorrect information can lead to a fine of €150 per property.

What if you’re taxed by mistake?

If you receive a vacant property tax notice and your property is not concerned, it’s your responsibility to contest it. The tax administration does not presume error: it's up to the owner to prove involuntary vacancy or actual occupation.

Here are the steps to follow:

• Log in to your impots.gouv.fr account, then use the secure messaging system to contact your tax office, or send a registered letter to your local Service des impôts des particuliers (SIP).
• Submit your contestation no later than December 31 of the year following the tax year.
• Attach supporting documents, depending on your case: Proof of occupancy (utility bills, phone, property income declarations, etc.), Proof of sale or rental efforts (agency mandates, ad screenshots, price reduction documents, etc.)

You can request a payment deferral while awaiting a decision. If your appeal is successful, you’ll be reimbursed, including late interest (0.2% per month).

---

Do you own a vacant property in Nice? Don’t let the vacant property tax catch you off guard—rent it out!

Our rental agency in Nice supports you through every step, from listing to full property management. Contact the Winter Immobilier expert team today!