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Property TAX exemption for energy-efficient housing : what’s new ?

September 24, 2026

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EXEMPTION EXTENDED TO RENOVATED OLDER HOUSING

The 2024 Finance Act has already strengthened this scheme for the most energy-efficient new houses.

Since January 1, 2025, this exemption is also available, at the discretion of local authorities, for older properties that have undergone energy renovation work.

From now on, properties that are more than ten years old may qualify for a property tax exemption, provided the local authorities implement the measure. Eligibility requires the homeowner to have undertaken renovation work eligible for a reduced VAT rate, with total expenses exceeding €10,000 per home over one year or €15,000 per home over three years. These renovations typically involve high-performance heating and/or hot water systems and thermal insulation improvements. Routine maintenance work is expressly excluded from eligible expenses and spending thresholds are calculated with VAT included.

The exemption can range from 50 to 100% of the tax base and will apply for three years starting from the year following the payment of the total renovation work. However, it cannot be renewed until ten years after the end of the exemption period.

PRACTICAL DETAILS AND DEADLINES

To qualify for this waiver, property owners must submit a declaration before 1 January of the first year in which the exemption applies, accompanied by all supporting documents detailing the nature and amount of the expenses.

The extension of the property tax exemption to renovated older properties marks a significant change to the scheme. This measure aims to encourage energy efficiency improvements in older properties, in line with the green transition objectives. Property owners must ensure they comply with the conditions, reporting requirements and deadlines set to benefit from this tax exemption.  

Sources

French Tax Code, art. 1383-0 B and 1383-0 B bis.

Finance Act 2024, art. 143.

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Written by Morgiane Quartana Partner

Morgiane Quartana