A proposed change to the 2026 finance law could mean that property owners who leave their homes or buildings empty may face higher costs starting in 2027. The law aims to combine two existing taxes on vacant properties and allows local governments to raise the tax rates, up to 60% in some cases. Currently, the tax on vacant properties (TLV) applies to homes in high-demand areas that remain unoccupied for at least one year by January 1 of the tax year. In other areas, a similar tax called the tax on housing for vacant properties (THLV) can be introduced by local authorities for properties that are empty for more than two years. In both situations, the property owner or someone with a legal right to use the property may be responsible for paying the tax. Under the new 2026 finance law, these two taxes will be merged into a single tax called the tax on the vacancy of residential premises (TVLH), effective from the 2027 tax year. In high-demand areas, this tax will automatically apply to affected properties. In other areas, local governments will decide whether to implement the tax. Additionally, the tax may also be due by individuals who have a legal right to use or develop the property, such as those with construction or rehabilitation leases. In areas where the TVLH automatically applies, the tax rate will initially be 17% of the property's rental value in the first year, increasing to 34% in later years. However, local councils can raise these rates, up to 30% and 60%, respectively. In areas where the tax is introduced locally, the rate can be as high as 50%. These limits mean that not all property owners will face the same increase in their tax bills. For real estate agencies and property managers, it's important to note that simply listing a property for sale or rent does not automatically exempt it from the tax. If a property owner claims the vacancy was beyond their control, they must provide evidence of the steps taken to find a tenant or buyer and justify the price they are asking. This can include appraisals, advertisements, and communication with potential buyers or renters. Additionally, the time a property has been vacant before January 1 will be considered for the 2027 tax year. The Service-Public.gouv.fr website provides a tool to help property owners determine the area where their property is located.