Tax on vacant housing (merger of the TLV and THLV)

Article 108 of the 2026 Finance Act creates, from 2027 assessments, the tax on vacant housing (Article 1406 bis of the General Tax Code), replacing the annual vacant housing tax (Article 232) and the housing tax on vacant homes (Article 1407 bis), which are repealed. It applies to homes vacant for at least one year in municipalities with a marked housing shortage, at 17% the first year and 34% thereafter (which the municipality may raise to 30% and 60%), and, if the municipality or an inter-municipal body with a local housing plan decides so, to homes vacant for at least two years elsewhere, at a rate of up to 50%. The base is the rental value; the revenue goes to municipalities and inter-municipal bodies. Decree 2026-831 of 25 August 2026 lists the municipalities where it applies automatically, matching the former TLV area.