Local residence tax, wealth tax on property, capital gains on resale, inheritance tax: owning a second home in the Mont-Blanc valley carries its own tax treatment, and the position is more delicate still for cross-border owners resident in Switzerland. This guide sets out the rules that apply and the options for planning the transfer of your property.
A second home: what changes for tax purposes
Unlike a main home, a second home enjoys no preferential treatment: it remains subject to the taxe d'habitation (the local residence tax) and may, depending on your overall wealth, fall within the scope of the impôt sur la fortune immobilière (IFI, the French wealth tax on property). Here are the rules to know:
| Tax | Who it applies to | Amount / rate | Point to watch |
|---|---|---|---|
| THRS — taxe d'habitation sur les résidences secondaires (local residence tax on second homes) | Every owner of a second home | Calculated on the property's cadastral rental value, with a surcharge of 5 to 60 % in communes designated as housing-pressure areas (zone tendue)1 | Chamonix-Mont-Blanc applies a 50 % surcharge2; other communes in the valley may also apply one — to be checked with the mairie |
| IFI — impôt sur la fortune immobilière (wealth tax on property) | Households whose net property wealth exceeds €1.3 million | A progressive scale from 0.5 % to 1.5 %, with no allowance for a second home3 | The 30 % allowance reserved for a main home never applies to a second home |
| Taxe foncière (property ownership tax) | Every owner | Set each year by the commune, with no specific ceiling | Can amount to a significant sum in the most sought-after communes |
1 Source: Service-public.fr, local residence tax on second homes. 2 Source: Chamonix-Mont-Blanc council resolution, 2024 (50 % surcharge applicable from 2025). 3 Source: Impots.gouv.fr, wealth tax on property. 2026 scales, to be checked each year against the official sources.
Capital gains on resale: what to plan for
On resale, a second home does not benefit from the full exemption granted to a main home. Any gain is taxable, but a tapering allowance applies according to how long the property has been held:
| Period held | Income tax (19 %) | Social charges (17.2 %) |
|---|---|---|
| Less than 6 years | No allowance | No allowance |
| From the 6th to the 21st year | An allowance of 6 % a year | A tapering allowance, on its own separate scale |
| 22nd year | Full exemption | Not exempt |
| 30th year | Full exemption (reached in the 22nd year) | Full exemption |
Above €50,000 of taxable gain, an additional tax of 2 % to 6 % may apply. Source: Impots.gouv.fr, capital gains on property for individuals. The detailed scale should be checked with your notaire at the time of sale.
Cross-border owners resident in Switzerland: a case apart
The Mont-Blanc valley attracts many buyers living in Switzerland, whether cross-border workers employed in Geneva or Swiss owners wanting a base in France. For tax purposes, a property situated in France remains taxable in France whatever the owner's country of residence: the local residence tax, the property ownership tax, the IFI where applicable, and capital gains tax on a resale all apply on the same terms as for a French resident.
The most important point concerns inheritance. Contrary to a widely held belief, France and Switzerland have had no tax treaty on inheritance since 1 January 2015, the earlier 1953 convention having been terminated by France. With no agreement in place, each country applies its own law, and there is a real risk of double taxation on a property passing to heirs resident in Switzerland. Notarial advice on both sides of the border is strongly recommended when planning the transfer of a second home in this situation.
No France–Switzerland inheritance treaty
Since the 1953 convention was terminated, nothing governs the double taxation of estates between France and Switzerland. For a cross-border owner, planning for this with a notaire is essential — ideally before even buying.
Planning the transfer: inheritance and lifetime gifts
A second home forms part of an estate like any other property, with the duties that follow according to the relationship between the parties.
Several options allow you to plan ahead and reduce the bill for your heirs:
■ A lifetime gift (donation), which carries an allowance of €100,000 per parent per child, renewable every 15 years
■ A shared lifetime gift (donation-partage), which fixes the value of the property at the date of the gift and limits disputes between heirs
■ Splitting the ownership (démembrement de propriété), which reduces the taxable base of the gift
An up-to-date valuation of your property is an essential first step in calculating the duties and choosing the most suitable approach.
Gift and shared gift: passing on a second home during your lifetime
Both the donation and the donation-partage carry an allowance of €100,000 per parent per child, renewable every 15 years. The main difference: the donation-partage fixes the value of the property at the date of the deed and avoids its being revalued when the estate is settled, unlike a simple gift made to a sole heir.
The simple gift
A simple gift transfers a property — in full ownership, in bare ownership (nue-propriété) or as a usufruct (usufruit, the right to use it or take its income) — to an heir, as a one-off.
- Allowance: €100,000 per parent per child, renewable every 15 years.
- Above the allowance: gift duties follow the same progressive scale as inheritance duties.
- Point to watch: a gift made to a sole heir is brought back into the estate and revalued at its value on the date of death.
The shared gift
A donation-partage divides one or more assets between several heirs in a single notarial deed.
- Value fixed: the property is valued at the date of the gift, with no revaluation when the estate is settled.
- Balancing payment (soulte): possible where the shares allotted to the heirs are not of equal value.
- Can be combined with splitting the ownership: gifting the bare ownership while reserving the usufruct, to reduce the taxable base.
- Main advantage: it greatly reduces the risk of a dispute between heirs.
An appointment with a notaire remains the only way to settle on the right solution for your family and for the current value of the property.
| Mechanism | What it allows | Allowance / conditions | Point to watch |
|---|---|---|---|
| Simple gift | Transfer a property (full ownership, bare ownership or usufruct) to one or more heirs, as a one-off | €100,000 per parent per child, renewable every 15 years | Brought back into the estate and revalued at its value on the date of death if made to a sole heir — a source of dispute if the property has gained value |
| Shared gift | Divide one or more assets between several heirs in a single notarial deed | The same allowances as a simple gift; a balancing payment is possible where shares are unequal | Value fixed at the date of the deed: avoids revaluation when the estate is settled and limits disputes between heirs |
| Shared gift with reserved usufruct | Combine division between heirs with the donor keeping the right to use the property or take its income | Taxable base reduced to the value of the bare ownership, on the scale set by the age of the usufruct holder (Article 669 of the French General Tax Code) | Needs notarial advice to get the deed right and to fit it with the eventual estate |
Allowances and scales are indicative — to be checked with a notaire according to your family situation, as these rules change with each Finance Act.
Splitting ownership and the family SCI: reducing the tax on a transfer
Splitting the ownership and the family SCI both reduce the taxable base of a transfer, but they answer two different needs: splitting separates the usufruct from the bare ownership, for a donor who wants to keep the use of the property; the family SCI organises the gradual transfer of a property held by several people.
Splitting the ownership
Splitting separates the bare ownership, given to the children, from the usufruct, kept by the donor.
- Usufruct retained: the donor keeps the right to occupy or let the property for life.
- Taxable base reduced: only the value of the bare ownership is taxable, on the scale set by Article 669 of the French General Tax Code.
- The scale depends on the age of the usufruct holder: the earlier the gift is made, the smaller the taxable share of the bare ownership.
- On the donor's death: the children recover full ownership with no further inheritance duty on that share.
The family SCI
A family SCI (société civile immobilière, a non-trading property company) replaces direct ownership of the property with shares, which are easier to pass on gradually.
- When it is used: for a property held by several people, or intended for several heirs.
- The same allowances: the shares can be given gradually, with the same allowance as an ordinary gift (€100,000 per parent per child, renewable every 15 years).
- It avoids indivision — joint undivided ownership, a frequent source of deadlock between heirs.
- An organised transfer: the property continues to be managed collectively, through the company's articles.
| Mechanism | What it allows | Tax advantage | Point to watch |
|---|---|---|---|
| Splitting the ownership | Give the bare ownership to a child while keeping the usufruct (occupation or income) | Taxable base reduced to the value of the bare ownership, according to the age of the usufruct holder (Article 669 CGI) | The donor loses free disposal of the property: the usufruct holder's consent is needed to sell it |
| Family SCI | Turn direct ownership into shares, which can be passed on gradually to several heirs | The same allowances as an ordinary gift (€100,000 per parent per child, renewable every 15 years) | Requires setting up and running a company: articles, accounts, meetings |
| Splitting combined with an SCI | Give SCI shares in bare ownership, so as to use both mechanisms together | A reduced taxable base together with an organised division between several heirs | A more complex arrangement, to be put in place with a notaire and a tax adviser |
The two tools can also be combined: giving SCI shares in bare ownership brings together the reduced taxable base of the split and the collective organisation of the SCI. Notarial advice is essential to put an arrangement of this kind in place safely.
FAQ – A second home in the mountains: tax and inheritance
Is a second home subject to the local residence tax?
Yes. Unlike a main home, exempt since 2023, the local residence tax on second homes (THRS) remains payable by every owner. In some communes designated as housing-pressure areas — Chamonix-Mont-Blanc among them, which applies a 50 % surcharge — it can be increased by 5 % to 60 %.
When does a second home become exempt from capital gains tax on resale?
Full exemption from income tax is reached after 22 years of ownership, and from social charges after 30 years. A tapering allowance starts from the 6th year.
Does a second home count towards the IFI?
Yes, as soon as the household's net property wealth exceeds €1.3 million. Unlike a main home, which benefits from a 30 % allowance, a second home is included in the taxable base with no allowance.
Is there a tax treaty between France and Switzerland on inheritance?
No — not since 1 January 2015: the 1953 convention was terminated by France. Each country now applies its own inheritance law, with a risk of double taxation to be planned for with a notaire where a property passes to heirs resident in Switzerland.
How can inheritance duties on a second home be reduced?
Several options exist: a gift during your lifetime (an allowance of €100,000 per parent per child, renewable every 15 years), splitting the ownership (gifting the bare ownership while keeping the usufruct), or putting the property into a family SCI to make a gradual transfer by shares easier.
Should I see a notaire before planning the transfer of my property?
Yes, always. The rules on inheritance, gifts and splitting ownership depend on your precise family and financial situation. A notaire — and a tax adviser where the situation crosses a border — is essential to settle on the approach best suited to your case.
This article sets out general information on French property taxation and is not tax or legal advice. Figures and scales are those applicable in 2026 and change with each Finance Act. Your own position should be confirmed with a notaire, and with a tax adviser where more than one country is involved.
Also covered separately now: capital gains tax when you sell a second home and the residence tax on a French second home.