Council tax on a second home on the Alabaster Coast

On the Alabaster Coast, where many owners retain a family home or pied-à-terre, council tax on a second home often raises questions when the tax notice arrives.

The principle is simple, but several situations must be distinguished : occupation for private use, furnished letting, a former home after entering a care home, a surcharge in certain municipalities, or a claim if you believe you have been taxed incorrectly. According to the official page on the THRS, it is the situation on 1 January that determines the tax liability for the entire year.

Key points to remember

• Tax is assessed for the whole year based on the situation on 1 January.
• The calculation is based on the cadastral rental value of the dwelling and its outbuildings, with a rate set locally.
• Some municipalities located in areas subject to housing pressure may apply a surcharge following a resolution by the municipal council.
• In the event of failure to submit an occupancy declaration or an error, the fine is €150 per premises concerned.

In which cases does the tax remain payable

The furnished nature is decisive. This concerns furnished premises used as a dwelling, with sufficient furniture to make it possible to live there. Immediate outbuildings are also covered, even when they are unfurnished and even if they are not attached to the dwelling, for example a garage or private parking space.

• If you are a year-round tenant of a second home, you receive the council tax notice for this property.
• If you occupy a second home for professional reasons, or if you benefit from tied accommodation in addition to the family home, this property is regarded as a second home subject to THRS; in a municipality that applies the surcharge, you can request a rebate of this surcharge by lodging a claim.

The abolition of the housing tax on main residences since 1 January 2023 does not change this rule: a second home remains taxable.

How to know whether a property is your main residence

The distinction between a main residence and a second home is essential. According to the tax definition of a main residence, it is the place at which your income tax is established.

• If you are a year-round tenant of another property without owning it, you must state this in your tax return.

How the tax is calculated

The amount is not determined on the basis of rent actually received, nor of a market value. For the THRS, the authorities use the cadastral rental value of the property and its outbuildings. This basis is revalued each year, particularly according to changes in prices.

The amount obtained then depends on the tax rates voted locally (local authority and inter-municipal authority). It therefore varies from one local authority to another.

• The cadastral rental value forms the basis for local taxes.

The authorities point out that it is not possible to obtain a reliable estimate yourself, as the calculation depends on many criteria relating to the characteristics of the property being taxed. If you would like an estimate, you must contact the local property tax office for the area where the property is located.

This distinction also matters to owners considering a transfer or sale. A property market value appraisal may be useful in an inheritance or wealth-planning context, but it does not replace the cadastral rental value used for THRS.

Occupancy declaration: a formality not to be overlooked

Owners of residential premises must declare their occupancy status to the tax authorities. This formality must be completed before 1 July in two cases:

• the dwelling has not yet been declared ;
• changes have occurred since the previous declaration.

You must in particular indicate whether you retain enjoyment of the property.

The declaration is made in your personal area on impots.gouv.fr, via the “Manage my property” section. In the absence of a declaration or in the event of an inaccuracy, the fine provided for is €150 per affected property.

This point concerns many owners of second homes on the Alabaster Coast. When a property is rented year-round, the occupancy declaration must identify the tenant (surname, first name, date and place of birth). Cabinet Soudey also offers properties to rent year-round and long-term property management with its sister company PCG Gestion, under arrangements distinct from those applying to residences retained for private use.

Possible increase in certain municipalities

Some municipalities may apply a surcharge to council tax on second homes. This possibility concerns municipalities located in areas subject to housing pressure. The following are concerned:

• municipalities forming part of a continuously built-up area of more than 50,000 inhabitants where there is a marked imbalance between housing supply and demand;
• municipalities where the proportion of dwellings that are not main residences is particularly high.

These are municipalities where the tax on vacant dwellings applies. The surcharge requires a decision by the municipal council. For municipalities characterised by a high proportion of dwellings other than main residences, this surcharge has applied since 1 January 2024.

Relief from the surcharge may be requested by lodging a claim with the tax office responsible for the second home if your professional activity requires you to occupy this property or staff accommodation, if your main residence is the long-term care facility where you are accommodated, or if the property cannot be used as a main residence for a reason beyond your control.

Possible exemptions and reliefs

THRS remains the rule, but several situations entitle you to an exemption or relief. They must be considered carefully, as they do not apply to all owners of second homes.

On the Alabaster Coast, everything therefore depends on the municipality concerned and the property’s exact circumstances.

How to challenge a council tax notice

The tax notice, received during the last quarter of the year, indicates in particular the elements used as the basis for calculating the tax.

A challenge may be considered, for example, if the property was not liable for second-home council tax in your situation on 1 January, if a surcharge was applied even though you fall within one of the cases qualifying for relief, or if the declared occupancy details do not correspond to your actual situation.

Submitting a claim does not exempt you from paying the tax. However, you can request a payment deferral. The request should be addressed to the competent public finance centre.

Also beware of a common confusion: taxes on vacant dwellings do not apply to second homes, even if they are occupied only part of the year, as they concern unfurnished premises.

If you are considering selling a property that has become expensive to keep, it may be useful to distinguish between council tax and disposal taxation. For the latter, you can read the rules on capital gains when selling a second home.

Frequently asked questions