If you own a second home or are planning to buy one soon, in addition to the purchase price (including the cost of the property, notary fees, etc.), you need to be aware of the cost your investment will incur throughout the year.
Maintenance costs of a second home
Your second home requires regular maintenance, whether it's changing roof tiles or facade renovation. In total, you should budget an annual amount of about 1% of the purchase price. In mountain areas, the increased wear from snow and salt can raise expenses.
Note that an unoccupied home requires more maintenance! Regular charges include energy expenses (electricity, gas, heating oil, etc.) and other fees such as internet packages or home insurance. The amount of the former depends on how frequently you visit the property.
As for insurance, it will obviously be higher than for your primary residence, given the higher risk of burglaries. Condominiums or chalets often have specific amenities like a pool, security service, green spaces, etc., which represent a significant cost to consider.
Taxation of second homes
Just like a primary residence, a second home is subject to property tax and housing tax. Even if the property is not occupied all year round, the owner will still be liable for local taxes such as the garbage collection tax, for example. Note that the television license fee only applies to primary residences.
Some municipalities may implement a surcharge of up to 20% on the housing tax contribution, provided that the dwelling does not constitute the primary residence.
Capital gains tax on second homes
It is common to resell your property at a higher price than you purchased it; this difference is called "capital gain." In the case of second homes, the capital gain is subject to taxation. Discover our article on capital gains tax in the case of selling a second home.
