Second Home: Definition and Complete Guide

One second home is a housing used for vacations, the weekends or temporary stays. Unlike the main residence, it is not permanently inhabited and does not benefit from the same tax advantages. What is a second home according to French legislation and taxation? How is it taxed? What are the criteria for renting or acquiring it? This comprehensive guide gives you all the answers before investing.

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What is a second home?

Definition and specificities

One second home Is a home that you Occupy in a way casual, usually for leisure or vacation. It can be a Country house, of a Beachfront apartment Or of a Chalet in the mountains. As a general rule, this type of property is used a few month per year, especially during vacation periods or weekends.

Unlike the main residence, where you live more than six months a year, the second home is occupied less than 183 days per year. As a result, it is not eligible for the same tax exemptions as the main residence.

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Real estate value of a second home

La Real estate value Of a second home depends on several factors:

• Geographic location : A property located in Municipalities located in a tense area may have a higher value due to high real estate demand. Conversely, a home in rural revitalization zone (ZRR) can benefit from tax advantages to encourage investment in these regions.
• Characteristics of the property : The area, the general condition, the equipment and the services offered directly influence the value of the property.
• Local market : The trends of real estate market, such as supply and demand, play a crucial role in determining the value of a second home.

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Taxation of second homes

Property tax and housing tax

The owners of second homes are subject to several local taxes, including mainly the property tax And the housing tax.

• Property tax : This tax is due annually by the owner, whether or not he occupies the home. It is calculated according to the cadastral rental value of the property, determined by the tax authorities.
• Housing tax : Although removed for primary residences since January 1st 2023, it remains applicable to second homes. Some Municipalities located in a tense area apply an increase in this tax to encourage owners to rent their property and thus reduce the housing shortage.

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Other taxes and contributions

• Vacant housing tax : If your second home is unoccupied and unfurnished for an extended period of time, it can be considered a vacant housing and be subject to a specific tax in certain municipalities.
• Social security contributions : Revenues generated by the Leasing of your second home are subject to social security contributions, at the current rate of 17.2%.

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Renting a second home

Rent a second home can be a great way to make your real estate profitable when it is not occupied. However, this approach involves complying with certain legal and fiscal obligations.

Depending on the location of the property and the type of rental envisaged, administrative procedures and fiscal rules may vary. It is therefore essential to be well informed before renting your home. Here are the steps to follow to rent your second home in full compliance.

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Here is a complete article on: Rent out your second home.

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Procedures for renting a furnished tourist apartment

If you are considering renting your second home As furnished tourist accommodation, several steps are necessary in order to guarantee the conformity and legality of the rental. Seasonal rentals are subject to specific regulations that vary according to the municipality and the duration of the rental. In particular, owners must comply with certain administrative obligations.

If you are considering renting your second home as a furnished tourist accommodation, several steps are necessary:

• Declaration at the town hall: Before offering your property for seasonal rental, a prior declaration at the town hall is mandatory. This declaration allows local authorities to monitor the evolution of the rental market and to manage the supply of furnished housing.

In some municipalities located in tense areas, where rental demand greatly exceeds the available supply, specific authorizations may be required, especially if the accommodation is rented for more than 120 days a year.

• Compliance with local regulations: Municipalities located in tense areas apply specific rules to avoid the shortage of housing intended for the main residence. Some cities impose quotas on the number of rental days allowed and may require financial compensation for each rental day that exceeds the authorized limit. In these areas, it is essential to inquire with municipal services before renting your property.
• Housing compliance: The property must meet current standards of decency and safety in order to be rented legally. This includes the installation of a smoke detector, the conformity of electrical and gas installations, as well as the absence of health risks (lead, asbestos). Non-compliant housing may be prohibited from renting, and financial penalties may be applied to landlords who do not meet these requirements.

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Applicable tax regime

Revenues from Leasing Of a second home are subject to taxation, regardless of the type of rental chosen. It is therefore essential to fully understand the various tax regimes in order to optimize your rental income while respecting the legislation in force.

• Empty rental: Rents received as part of a empty location are taxed under the land income regime. Two options are possible:
• Micro-land : if the annual rental income is less than €15,000, a flat rate allowance of 30% is applied to the taxable income.
• Real regime : allows you to deduct real expenses (work, loan interest, condominium fees) but requires more rigorous accounting management.
• Furnished rental: The furnished rental allows you to opt for the status of non-professional furnished rental company (LMNP), offering an attractive fiscal framework.
• Social security contributions : Rental income is also subject to social security contributions, representing 17.2% of earnings received.

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Mecaza: Your partner for the purchase of your second home

The acquisition of a second home is a major project requiring in-depth expertise in the real estate market. MeCaza provides you with a network of 80 real estate hunters spread across the whole of France. Whether you want to invest in a popular tourist region or in a rural revitalization zone (ZRR) to benefit from tax advantages, our experts support you at each stage of your project.

➡️ Contact Mecaza today to make your real estate project a reality and find the second home of your dreams! Make a free appointment now.

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FAQS

1. What is the difference between a primary residence and a second home?

One main residence is the home where you usually live and where the center of your professional and family interests is located. Unlike the main residence, a second home Is a home that you Occupy in a way casual, usually for leisure, vacations, or weekends.

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2. Does housing tax apply to second homes?

Yes, the housing tax is still applicable to second homes. Since the January 1st In 2023, this tax was abolished for primary residences, but it remains in force for second homes. In addition, some Municipalities located in a tense area may apply an increase in this tax.

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3. What are the tax advantages of investing in a second home?

Investing in a second home located in rural revitalization zone (ZRR) can offer tax benefits, including temporary exemptions in case of Leasing.

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