France Revises Tax Breaks and Rent Support to Boost Housing Access
The French government is examining changes to tax advantages currently enjoyed by landlords who rent to tourists, aiming to rebalance incentives and expand the housing supply for residents. The move comes as part of a broader plan to strengthen the housing market and improve access to property in cities and towns across the country.
Housing Minister Olivier Klein disclosed in an interview with France Info that the administration is pursuing the most equitable taxation framework possible between tourist rentals and long-term rentals for residents. The goal is to ensure that tax rules reflect the different purposes of housing, while maintaining a stable revenue base for public services.
Prime Minister Elisabeth Borne will receive a briefing later in the day as the government outlines a large housing plan. The plan contemplates a careful review of taxation measures and their impact on housing supply, particularly for households seeking affordable rentals. A key point of discussion is the current allowance that lets some landlords reduce declared income for tax purposes; officials argue that a more balanced approach is needed across housing sectors.
Within the discussions, the device known as Visale is expected to be extended. This guarantee system provides rent protection for landlords and helps younger tenants and workers with modest incomes secure housing. The objective is to widen access so that two million people benefit between 2023 and 2027, up from the initial signups of under one million in 2016. The extension would help households with limited financial security to obtain rental accommodation for longer terms and with greater predictability for landlords.
Another facet of the plan involves rent controls. A ceiling of 3.5 percent has been proposed to cap rent increases, with officials indicating this limit would be extended if necessary to prevent rapid price escalations. Without timely extensions, the rate of annual rent growth could rise sharply, affecting affordability for many residents and renters across the country.
Klein emphasized that there remains a risk of a social crisis if affordable housing access deteriorates. The government has signaled readiness to act decisively to address these challenges and to support households in securing stable homes amid ongoing market shifts.
To support property access, the administration is also reinforcing zero-interest loans for housing, known locally by its acronym PTZ. This program remains targeted at households with modest incomes and is designed to complement other financing options for home purchases. PTZ allocations will continue to focus on helping households acquire a primary residence, particularly in areas facing housing pressure, and opportunities for refurbishment are being considered in a broader strategy to revitalize urban and peri-urban neighborhoods.
Under the revised framework, PTZ will be limited to purchases of new dwellings or existing homes in designated tense areas, provided those homes undergo refurbishment. This shift aligns with the aim of improving energy efficiency and modernizing housing stock while focusing aid where demand is strongest. Authorities estimate that public funds allocated to this mechanism will total around 600 million euros per year, supporting ongoing housing activity and investment in renovations.
The government also seeks to advance a policy initiative known as the Real Solidarity Treaty, a plan that involves reconfiguring land ownership and public land use to lower housing costs for buyers. The aim is to reduce purchase prices by transferring ownership arrangements that unlock more affordable housing opportunities while maintaining public oversight of land assets for strategic needs.
In sum, the new housing program frames a multi-faceted approach to tax policy, rental guarantees, rent controls, and financing tools. The overarching objective is to stabilize housing markets, protect vulnerable households, and promote access to home ownership across France while balancing public fiscal responsibilities. These steps are intended to deliver greater housing security and steady, predictable policy outcomes for renters, landlords, and municipalities alike. Attribution about policy deliberations reflects official statements from government briefings and parliamentary discussions as reported in national outlets and official releases.