Local taxes
Taxe foncière (property ownership tax) is payable by whoever owns the property on 1 January. Taxe d'habitation (French residence tax), abolished for main residences, remains payable on second homes; several tourist communes may apply a surcharge.
There is also the household waste collection tax and, for furnished holiday accommodation, the tourist tax collected from guests and paid to the commune or intercommunal authority.
Letting your second home
Holiday letting is taxed as business income under the bénéfices industriels et commerciaux (BIC) category. The micro-BIC regime applies a flat-rate allowance; the actual-expenses regime allows actual costs to be deducted and the property to be depreciated, often eliminating tax in the early years.
Be aware of local obligations: declaration to the town hall, registration number and, in some communes, controls on changes of use. Failure to comply can result in substantial fines.
- Micro-BIC tax regime: simplicity and a flat-rate allowance
- Actual-expenses tax regime: property depreciation and deduction of expenses
- Town hall registration and registration number required
- Tourist tax to collect and remit
Property wealth tax (IFI) and asset transfers
French property wealth tax applies to net property assets exceeding €1.3 million. Acquisition debt remains deductible, making mortgage finance more tax-efficient than a cash purchase for those whose assets fall within its scope.
For inheritance planning, ownership through a family SCI (property-holding company) makes it easier to split use and bare ownership rights and gradually gift shares, while avoiding joint ownership deadlocks — a sensitive issue in Corsica, where many estates remain unsettled.
The arrêté Miot decree and the realities of inheritance in Corsica
The historic special regime for inherited property in Corsica has been phased out: estates opened since 2018 fall under the standard rules for tax on gifts and inheritances.
The practical consequence is substantial: many properties remain in joint ownership without an up-to-date title deed. Regularising title before a sale or transfer takes time and specialist support from a notary — it needs to be planned several months in advance.