These cities where taxes on second homes are soaring

It is not good to have a second home in Sète, in Hérault (34), according to a study by Prello on second home taxes, a group that launched a model of buying a second home with others. The housing tax has been increased by 60% in Sète and the tax rate now stands at more than 80%. “It’s as if owners were paying 80% of the rental value of their property. As if they were paying rent for their property», explains Ludovic de Jouvancourt, co-founder of Prello. The housing tax rate varies from one city to another, being set by the municipalities. The amount of the housing tax is calculated according to the cadastral rental value of the property and its outbuildings by application of a rate voted by the local authority of the location of the property. Wimereux, in Pas-de-Calais, occupies second place on the podium, followed by Frontignan, also in Hérault, which charges housing and property taxes on expensive second homes.

Certain municipalities of more than 50,000 inhabitants where the demand for housing is greater than the supply (tense areas), can effectively apply a increase in housing tax of the order of 5 to 60% since 2017. In total 4000 cities are concerned. Among them, metropolises such as Paris, Lyon or Marseille, but also seaside resorts, with strong appeal, like Sète. And some don’t deprive themselves of it. “We see a correlation between the tourist attractiveness of an area and the town hall’s desire to involve owners of second homes. This is the most accessible mechanism for a municipality to release property and make it into primary residences. A way to reduce the level of capital attractiveness of goods», underlines Ludovic de Jouvancourt.

Low taxes in Carry-le-Rouet

Conversely, it is good to own a second home in Carry-le-Rouet, in Bouches-du-Rhône (23.8%), in Cambo-les-Bains, in Pyrénées-Atlantiques (24.4% ) and Saint-Pée-sur-Nivelle, in the same department (24.9%). More surprisingly, in Cassis, taxes do not weigh too heavily on second homes (26.1%). This municipality has chosen not to increase taxes on its second homes even though its tourist attraction is strong. “Certain municipalities with high inflation in the price per square meter linked to the attractiveness of the location are in the process of remaining attractive. Owners of second homes then pay housing tax but the dry value, without increase», analyzes Ludovic de Jouvancourt.

The cost of property tax also increased in 2023 by 7.1% across the entire territory. To reduce the burden of these taxes, the start-up Prello offers to buy a second home with several people, up to 8 buyers, within an SCI. Thus, all costs linked to the property are shared. “The annual cost of a second home represents 1 to 4% of its real estate value depending on its equipment. A substantial sum that can be reduced by owning a secondary house of 7 or 8 people, allowing the bill to be divided accordingly», suggests Ludovic de Jouvancourt, co-founder of Prello.