Property tax on second homes drops sharply

The property tax on second homes in France, known as THRS, has seen a sharp decline, with the amounts charged to taxpayers dropping by 9.7% in 2025, according to the latest analysis by the statistical service of the Direction générale des Finances publiques (DGFiP).

Local authorities see lower tax revenue

Local authorities are also experiencing a decrease in overall tax revenue from THRS, with total collections falling by 18% in 2025. This decline is not due to local authorities lowering tax rates, as only 0.9% of municipalities have done so this year.

Fewer properties are being taxed

The main reason for the drop in THRS collections is a decrease in the number of properties actually being taxed. This is linked to improved rules for identifying taxpayers, including the use of an online portal called "Gérer mes biens immobiliers" and other regulatory and operational changes.

Fewer incorrect tax notices issued

Before these improvements, many households received incorrect property tax notices. As a result, the number of homes for which a tax is called has decreased, with a 12% drop in apartments and an 8% drop in houses.

Surplus revenues in 2024 affected 2025 results

Another factor contributing to the lower tax revenues in 2025 is that local authorities benefited from surplus revenues in 2024. These were linked to adjustments in new declaration methods that had previously led to taxation errors being corrected by the state.

THRS expected to stabilize in 2025

The 2025 figures represent a correction, and the property tax on second homes is now expected to reach a more stable level after the changes in taxpayer identification and the correction of past errors.