France's 2026 budget law gives cities in high-demand areas new powers to tackle the housing crisis. Paris has announced it will nearly double taxes on vacant properties starting in 2027, following similar strategies used in Brussels and New York. The city aims to bring approximately 20,000 empty apartments back onto the market through this financial pressure on owners who leave properties unoccupied.
The move reflects growing frustration with housing shortages in major European cities. By making vacant properties significantly more expensive to hold, Paris hopes to incentivise landlords to either rent out their homes or sell them, increasing the supply of available housing.
Expat Impact
If you're an Indian student or professional renting in Paris, this policy could increase housing availability and potentially moderate rental prices over time—good news for a community often competing for limited affordable housing. However, if you own property in Paris, expect higher tax bills on any vacant units starting 2027. For those planning to move to France, watch for more apartments entering the rental market in coming months as owners respond to the tax increase.
Source: Le Monde English