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Paris Approves Steep Surtax on Vacant Homes to Push 20,000 Units Back into the Market

The city activated powers from France’s 2026 finance law to raise vacancy tax rates and retain the revenue, using higher bills to pressure owners to rent or sell.

Overview

  • The Conseil de Paris adopted the surtax in mid‑July, setting local vacancy rates at 30% after one year and 60% after two years, with the new TVLH regime taking effect on 1 January 2027.
  • City officials say the measure aims to return about 20,000 of roughly 139,000–140,000 vacant dwellings to the rental market by making long vacancy much more costly for owners.
  • Paris also removed a fiscal exemption for furnished tourist rentals so those short‑stay units will face the same vacancy surcharge under the reformed local tax.
  • The Court of Auditors and critics note past vacancy‑tax hikes raised receipts without clearly cutting the stock of empty homes, leaving the policy’s real impact on supply uncertain.
  • The move will raise municipal revenue at a time of weaker property‑sale income and could increase costs for owners—for example a 30 m² vacant flat in the 17th is estimated to pay about €1,400 in 2027 and €2,800 in 2028 under the surtax.