Since the extension of the tax on vacant housing (TLV), the number of owners concerned has increased considerably in 2024. This tax, which affects owners of properties unoccupied for at least a year, has been extended to new areas of the territory. But who is really affected by this tax measure? Explanations.
Tax on vacant housing, who is affected?-_Alicja_pixabay.jpg
What is vacant housing?
A dwelling is considered vacant if it is not continuously occupied for more than 90 days during a year. The TLV applies if the property is located in a “tense zone”, that is to say an area where there is an imbalance between supply and demand for housing. These areas are often characterized by high rents and a shortage of properties available for rental. From January 1, 2024, it is no longer only large cities that are concerned, but also a set of 3,697 municipalities, almost three times more than in 2023 when 1,100 municipalities were concerned.
Extension of the tax: new municipalities affected
Until 2023, the TLV mainly applied to large cities. However, the redefinition of tense zones now leads to the application of the tax in smaller municipalities, including those with a high proportion of second homes. According to UFC-Que Choisir, this extension places many owners, for the first time, under the yoke of this taxation. It is therefore essential for them to check whether their property is located in an eligible area. To do this, they can refer to the annual declaration of real estate, put in place by the tax authorities.
A sharply rising tax rate
The amount of the TLV is calculated on the basis of the cadastral rental value of the property, a value which increased by 3.9% on January 1, 2024. In addition, the tax rate of the tax on vacant housing has suffered. a significant increase. It is now set at 17% for the first year and rises to 34% from the second year of vacancy. For example, an owner who is unable to rent his property for two years will see his tax burden double. This tax is payable in December after notification in October.
Possible exemptions
Fortunately, some exceptions exist. Landlords can escape the TLV in several cases. If the accommodation requires significant work to become habitable or if it is owned by a low-income housing organization (HLM), the owner can request an exemption. In addition, accommodation used for more than 90 consecutive days per year is also exempt from this tax.
