January 16, 2026
Secondary Home 360°: successful purchase and taxation
Introduction: Why this 360° guide to secondary homes?
Do you dream of a secondary home to escape daily life, generate income or prepare for your retirement? You are not alone. According to INSEE, nearly 35% of French households already own a pied-à-terre outside their main residence. The idea of a country house, a seaside apartment or a mountain chalet is increasingly appealing, both for the quality of life and for patrimonial diversification.
However, behind this dream lie many pitfalls: complex taxation, hidden costs, regulatory constraints and vacancy risks. Between property tax, council tax, capital gains and IFI, it's easy to feel overwhelmed.
This is why I designed this 360° guide: a clear, quantified and transparent path, to help you:
- Understand the legal and tax definitions.
- Anticipate all taxes and optimise your budget.
- Measure the advantages and disadvantages of such an investment.
- Finance and select the most suitable loan.
- Benefit from possible exemptions and reductions.
- Think long-term, transmission or resale.
1. Defining a secondary home
1.1 What is a secondary home?
The Code de la construction et de l’habitation (article R 318-7) and service-public.fr define a main residence as accommodation occupied for at least 8 months a year (or 6 months for tax purposes), except for professional, health or force majeure exceptions.
Consequently, any other accommodation, even equipped and furnished, automatically becomes a secondary home. Its main characteristics:
- Occasional use: leisure, weekends, teleworking.
- Occupation duration < 6–8 months/year (with exceptions).
- Rental possible (seasonal or pied-à-terre).
- Vacant outside periods of occupation.
This status applies even if you own several properties and do not occupy any of them continuously.
1.2 Main residence vs secondary home
| Criterion | Main | Secondary |
|---|---|---|
| Occupation | ≥ 8 months/year* | < 6–8 months/year |
| Council Tax | Exempt since 2023 | Fully due |
| Property Tax | Due (local exemptions) | Due (+20% non-resident) |
| IFI | 30% abatement | No abatement |
| Capital Gains | Total exemption | 36.2% tax |
*Exceptions for professional, health or force majeure reasons.
Practical case: You spend 10 weekends a year in your pied-à-terre (5 months). Despite this frequency, you are a secondary resident because you do not live there continuously. Keep energy bills and certificates to justify your situation.
1.3 Immediate tax impact
As soon as it is purchased or made available, your secondary home entails:
- Property tax and TEOM (household waste) based on the cadastral rental value.
- Council tax on secondary homes (THRS), without abatement.
- IFI on the net value of assets (> €1.3M threshold).
- Capital gains taxable at 19% IR + 17.2% PS.
- Reporting obligation for all rental income.
2. Tax rules to know
2.1 Property tax
- Base: revalued cadastral rental value (1970 rent + annual revaluations).
- Rate: voted by commune, inter-municipal and departmental.
- Increase: +20% for non-resident owners.
- TEOM often included.
Tip: estimate your tax on impots.gouv.fr in a few clicks.
2.2 Council tax on secondary homes (THRS)
- Calculated on cadastral rental value, without occupancy abatement.
- Increase 1%–60% depending on zone and municipal deliberation.
- Possible exemptions:
- Revitalised rural areas (ZRR).
- Vacant or under construction properties.
- EHPA, EHPAD.
- Returning expatriates, professional relocation.
- More information on council tax exemptions for secondary homes.
2.3 Impôt sur la Fortune Immobilière (IFI)
Tax threshold: net assets > €1.3M. The secondary home has no abatement, unlike the main residence (30% on a single property).
| Taxable value | Rate |
|---|---|
| €0–800,000 | 0% |
| €800,000–1.3M | 0.5% |
| €1.3–2.57M | 0.7% |
| €2.57–5M | 1% |
| €5–10M | 1.25% |
| > €10M | 1.5% |
2.4 Property capital gains tax
Overall rate: 19% (IR) + 17.2% (PS) = 36.2%. Abatements according to duration:
| Duration | IR Abatement | PS Abatement |
|---|---|---|
| < 6 years | 0% | 0% |
| 6–21 years | 6%/year | 1.65%/year |
| 22nd year | 4% | 1.6% |
| 23–30 years | — | 9%/year |
Practical case: Purchased for €200,000 in 2010, resold for €350,000 in 2025:
- Gross gain: €150,000.
- IR abatement: (15–5)×6% = 60% → IR base: €60,000 → IR: €11,400.
- PS abatement: (15–5)×1.65% = 16.5% → PS base: €125,250 → PS: €21,550.
- Total tax: ~€32,950 (calculation of property capital gains).
2.5 Rental income (seasonal rental)
- Micro-BIC: 50% or 71% abatement (classified furnished accommodation), ceiling €188,700.
- Régime réel: deduction of all charges and depreciation.
- Reporting obligation even in case of vacancy, €150 fine per property.
- Learn more about rental management and status distinctions.
3. Advantages and disadvantages of investing
3.1 Advantages
- Flexibility: holidays, teleworking, retirement.
- Additional income: 2–4% net yield in France.
- Asset diversification: protection against inflation.
- Long-term value appreciation: potential capital gains.
- Well-being: living environment, surroundings.
3.2 Disadvantages
- High costs: notary (7–8%), maintenance, charges, insurance.
- Management: claims and remote rental.
- Vacancy: periods without income.
- Taxation: less favourable than for a main residence.
3.3 Quantified examples
| Scenario | Purchase | Gross rent | Charges | Net yield |
|---|---|---|---|---|
| Mountain villa | €300,000 | €8,000/year | €2,000 | 2% |
| Luxury villa Mauritius | €700,000 | €35,000/year | €6,000 | 4.14% |
The difference in yield is explained by sustained tourist demand and lighter taxation in Mauritius.
4. Financing and acquiring a secondary home
4.1 Assessing borrowing capacity
Maximum debt-to-income ratio: 35% of income. Standard duration: 25 years. Don't forget:
- Current charges (other credits).
- Notary fees (~7–8%).
- Working capital for maintenance and works.
4.2 Building up the down payment
Personal down payment generally required: 10–20% of the price. Covers:
- Notary and administration fees.
- Immediate works or furniture.
A high down payment leads to a better rate.
4.3 Choosing the right loan
- Amortising loan: constant monthly payments, principal + interest.
- Interest-only loan: monthly interest, principal repaid at the end.
- Bridging loan: while waiting for the sale of another property.
- Guide to financing a secondary home.
Each of these options presents compromises between total cost and monthly payments.
4.4 Guarantees and application package
- Mortgage on an existing property.
- Bank or organisation guarantee (often cheaper).
- Pledging of a life insurance policy.
Key documents: pay slips, tax assessments, bank statements, preliminary contract.
4.5 Visit and negotiation checklist
Points not to forget:
- Energy Performance Certificate (EPC).
- General condition (cracks, humidity, roof).
- Co-ownership charges and voted works.
- Comparative price analysis (Soléa Realty provides an off-market report).
5. Optimisation and tax exemptions
5.1 Works and property tax exemptions
- 50–100% exemption for 3 years for energy renovation (before 1989).
- Temporary 2-year exemption for new or rehabilitated constructions.
5.2 THRS exemptions
- EHPA, EHPAD for former accommodation.
- Returning expatriates (collective return procedure).
- Vacant accommodation > 2 years (Cerfa 1205-GD).
- Classified tourist rental: 71% abatement, declaration 13567*02.
5.3 5.5% VAT for works
- Energy or adaptation works, accommodation > 2 years.
- Carried out by an RGE professional.
5.4 Optimising capital gains on resale
- Re-employment of proceeds for main residence (IR/PS exemption).
- Reinforced 70% IR abatement in tense areas after 5 years.
5.5 Mistakes to avoid
- Late declaration or omission of premises.
- Non-compliance with exemption conditions (incomplete file).
- Absence of prior tax simulation.
6. Transition to main residence and long-term strategies
You can convert your secondary home into a main residence if:
- You live there > 6 months/year (invoices, schooling as proof).
- You change your tax address.
Tax advantages:
- Total exemption from capital gains.
- 30% IFI abatement on a single property.
The family SCI is an efficient vehicle for organising transmission and donation by optimising rights and abatements.
Switch example
Imagine Lucie, a Parisian executive, who buys a Savoyard chalet in 2012 for €250,000. Used as a secondary residence until 2023, she decides to live there 7 months a year and establish her tax domicile. In 2028, she partially resells the property, benefits from a total capital gains exemption and recovers €80,000 net of taxes to finance her future main residence.
Conclusion & 360° roadmap
Here is your 6-step roadmap:
- Define status and needs.
- Master taxation and costs.
- Evaluate yield and risks.
- Finance and negotiate.
- Benefit from exemptions.
- Think resale/transmission.
Download our final checklist to tick off each step with peace of mind.
Fancy a pied-à-terre in Mauritius? Contact Soléa Realty, your 100% free local agency. Benefit from our expertise, our off-market portfolio and tailor-made support, from research to taking possession of your new villa.