Second home: should you sell before the 2027 property tax increase?

The property tax (taxe foncière) increase expected in 2027 is not, on its own, a reason to sell a second home. It should result mainly from the statutory revaluation of rental values, indexed to inflation and likely to exceed 3%. In some municipalities, this may be compounded by the inclusion of "comfort features" and, for second homes in high-demand areas (zones tendues), a surcharge on the housing tax (taxe d'habitation) of up to 60%. For most owners, this amounts to a few tens to a few hundred euros per year, far less than capital gains tax or a poorly prepared sale. Selling does, however, make sense if the property is rarely used, costly to maintain and located in a municipality that heavily surcharges second homes.

Information up to date as of November 2026. The 2027 budget is currently being examined by Parliament.

In summary

• The 2027 revaluation of tax bases is indexed to November inflation: more than 3% is expected, after only 0.8% in 2026.
• Comfort features: some municipalities have agreed to include these amenities in the tax bases, with a letter sent to owners whose tax bill rises by at least €50.
• Housing tax on second homes: a surcharge of 5% to 60% is possible in municipalities in zones tendues.
• Before selling, compare the annual cost of ownership with the tax on the capital gain and the property's value in use.

What will actually increase in 2027

The flat-rate revaluation of rental values

Each year, property tax bases are revalued according to the November harmonised index of consumer prices. After an increase limited to 0.8% in 2026, the acceleration of inflation points to an increase of more than 3% in 2027, even before local authorities decide on their rates. To compare this cost with the value of your property, request an estimate of your second home.

The "comfort features"

After the suspension in November 2025 of a national update of amenities (running water, sanitary facilities, heating) missing from the land registry files (fichiers fonciers), the tax administration offered the operation to municipalities and intercommunal bodies, which had to accept it before the end of September 2026 for it to apply from 2027. In the municipalities concerned, a dwelling's tax base may increase significantly.

Housing tax on second homes

The housing tax (taxe d'habitation) has been abolished for primary residences, but it remains payable on second homes. In municipalities in zones tendues, the municipal council may vote a surcharge of 5% to 60%, as explained on the official impots.gouv.fr page. Resolutions passed before 1 October 2026 apply in 2027. There is also a parliamentary debate on relaxing the cap on these rates, with no decision to date.

The general revision of rental values, still pending

The rental values of dwellings still rest on old references, often far removed from the current market. A general revision has been planned for several years, but it has been postponed and will not apply to the 2027 tax notices. In time, it could significantly change the property tax on certain properties, particularly in highly sought-after areas: a point to watch for second-home owners in attractive locations.

How much will the increase cost you?

Illustrative example: check your municipality's rates and resolutions and your tax notice.

How to check what you will actually pay

Your property tax notice (taxe foncière) and your housing tax notice (taxe d'habitation) detail the tax bases, the rates of each local authority and how they have changed. Municipal council decisions, published by the DGFiP, indicate whether a surcharge on housing tax for second homes applies. If you receive a letter at the end of 2026 about comfort features, check the amenities that were taken into account: you can challenge inaccurate information.

Selling or keeping: the real decision criteria

Capital gains taxation

Unlike a main residence, the sale of a second home is subject to capital gains tax (19% plus 17.2% in social contributions), with an exemption from income tax after 22 years of ownership and from social contributions after 30 years. A hasty sale can cost far more than several years of property tax increases.

Actual use of the property

How many weeks a year do you occupy it? A second home used two weeks a year often works out at several hundred euros a night, all costs included.

The local market

Coastal and tourist markets are generally holding up well, but selling times there are longer (80 days in Provence-Alpes-Côte d'Azur, 111 days in Corsica on Bien'ici). A sale needs to be planned in advance. Properties for sale on the coast, in the mountains or in the countryside give an overview of the competition in your area.

The rental alternative

Renting as a furnished tourist rental or year-round can cover costs, but the rules are becoming stricter (minimum DPE rating, quotas, registration): check the regulations in your municipality.

The plan for passing the property on

A second home is often a family property that one wishes to pass on. Before selling, ask yourself whether your children want to keep it and on what terms. An advance gift (donation) or an arrangement through a société civile (a French civil real estate company) can sometimes reconcile succession planning with sharing the costs.

Alternatives to selling a second home

If the tax increase has you thinking, selling is not the only option. Several solutions can reduce the cost of ownership while allowing you to keep the property.

Seasonal rental

Renting for a few weeks a year can cover part of the costs. However, the rules have become stricter: declaration at the town hall, registration in some municipalities, a cap on the number of days in others, energy performance requirements for furnished tourist rentals, and a reduced micro-BIC allowance for unclassified furnished rentals (30% up to €15,000 in revenue). Check your municipality's rules before getting started.

Year-round rental

Renting the property to a tenant as their main residence removes the second-home housing tax for the owner, since it is owed by the occupant on 1 January. This means giving up personal use and complying with the minimum energy performance level.

Sharing with the family

A family société civile immobilière (SCI) or an organised joint ownership (indivision) can spread the costs among several family members. This is a solution to explore with a notaire, particularly to prepare for succession.

Gifting the property

Transferring the property to your children, possibly while retaining the usufruct, allows you to plan ahead for succession. Costs and property tax generally remain payable by the usufructuary. The tax consequences should be calculated with a notaire.

Selling a second home well: specific points

If you decide to sell, a second home has a few particularities compared with a main residence.

Choosing the right season

Second-home buyers often visit during the holidays, in spring and summer. Listing the property early in the year allows you to be ready for the spring holidays, a busy period in tourist areas.

Organising remote viewings

If you live far away, leave the keys with your advisor, offer a virtual tour and prepare a complete file (service charges, taxes, energy consumption, maintenance invoices) to be sent before the physical visit. A local real estate advisor based on site can organise viewings and follow the sale in your absence.

Anticipating the tax implications

Have the capital gain calculated before setting your price. The acquisition price can be increased by acquisition costs (flat rate of 7.5%) and, after five years, by renovation work (flat rate of 15% or actual amount). The tax is withheld by the notary at the signing of the deed.

Preparing the property

A little-used second home can seem frozen in time. A refresh, some garden upkeep and a thorough clean before the photos significantly change how buyers perceive the property.

The expert's view

"Second-home owners are talking to me a lot about the taxe foncière (property tax) at the moment. I understand the concern, but the figures need to be put into perspective: for most of them, the increase expected in 2027 amounts to a few tens to a few hundred euros per year, to be compared with the value of the property and the capital gains tax in the event of a sale. What I suggest to them is a full assessment: how many weeks a year do you use the house, how much does it cost you in total, how much is it worth today, and what would you be left with after tax if you sold it. This assessment sometimes leads to selling, but more often to keeping the property and adjusting how it is used, for example by renting it out for a few weeks. What matters is to decide on the basis of figures, not under the influence of a press headline. And if selling is the right move, it is better to prepare for spring, when second-home buyers are most numerous."

— Frédéric Rémy, Commercial Performance Director at Capifrance

Conclusion

The taxe foncière will probably rise in 2027, but for the majority of second-home owners, the effect will remain limited relative to the value of the property. The decision to sell should be based on usage, overall cost, the capital gain and the local market. In municipalities that apply a heavy surcharge, the calculation is worth redoing now.

To find out the current value of your property, request an estimate of your second home. Compare it with the properties for sale on the coast, in the mountains or in the countryside, and contact a local Capifrance advisor, who knows the buyers in your area. Do you know other owners who are asking themselves the same question? Become a Capifrance business referrer.

FAQ - Frequently asked questions

Will the taxe foncière rise in 2027?

Very probably: the statutory revaluation of the rental values used as the tax base, linked to inflation, should exceed 3%, not counting any rate increases voted locally.

Who pays the taxe foncière in the year of the sale?

The owner on 1 January, but the deed generally provides for a pro rata reimbursement by the buyer.

How can I tell whether my municipality applies a surcharge on the taxe d'habitation?

The surcharge appears on your taxe d'habitation notice and in the resolutions published by the municipality and the DGFiP.

Can I turn my second home into my main residence?

Yes, if you actually and habitually live there. A subsequent sale may then benefit from the capital gains exemption, provided you have genuinely occupied the property.

Does a second home rented out year-round pay the taxe d'habitation?

Not for the owner: the taxe d'habitation is due by the occupant on 1 January. If it is the occupant's main residence, they do not pay it either, since the abolition of this tax for main residences.

Can the taxe foncière be reduced?

Exemptions exist for certain owners depending on their income and age, but they mainly concern the main residence. Check your situation in your personal account on impots.gouv.fr.

Should I sell before 1 January to avoid paying the 2027 taxe foncière?

The owner on 1 January is liable, but the deed generally provides for a pro rata reimbursement by the buyer: the stakes are therefore limited.

Is a second home sold in 2027 subject to capital gains tax?

Yes, unless a specific exemption applies: the capital gain is taxed at 19% plus 17.2% in social contributions, with allowances depending on the length of ownership.

Can municipalities still raise their rates in 2027?

Yes, each municipality and intercommunal authority votes on its rates in the spring. The final amounts are only known once the tax notice is received in the autumn.

Can a second home rated F be rented out as a seasonal rental?

Furnished tourist accommodations are subject to energy performance requirements that are being progressively strengthened, and some municipalities impose their own rules: check before putting the property up for rent.

Is an inherited second home subject to the same taxes?

Yes, the heir becomes liable for the property tax (taxe foncière) and, if the property is not occupied as their main residence, for the housing tax on second homes (taxe d'habitation), which may be increased.

Author

Frédéric Rémy – Director of Sales Performance

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A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.