In French tax law, the primary residence refers to the housing that is habitually and effectively occupied for the majority of the year. For a married or civil partnership couple subject to joint taxation, the tax administration generally considers a single tax household, thus one primary residence. This rule, firmly established in the General Tax Code, has seen recent adjustments that warrant careful examination.
Council of State Ruling of July 7, 2026: What Changes for Housing Tax
On July 7, 2026, the Council of State issued a ruling that modifies the usual interpretation of the rule. It determined that being married and taxed jointly does not prevent the assessment of each spouse’s primary residence separately for the application of housing tax.
Specifically, a married couple where each spouse lives in a separate dwelling can, under certain conditions, have two primary residences recognized for this tax. The ruling does not create an automatic right: the effective occupation of each dwelling must be demonstrated.
This point is crucial. Before this ruling, the administration considered that joint taxation mechanically implied a single tax domicile. Now, whether a couple can claim two primary residences for a couple depends on the material reality of the occupation, rather than solely on the marital regime or tax status.
Primary Residence and Housing Tax: January 1 as a Criterion
The situation is assessed as of the January 1 of the tax year. The supporting documents provided must correspond to this specific period and demonstrate actual occupation of the dwelling at that time.
The address listed on the income tax return is not sufficient. The Council of State described it as an indicator among others, not as sufficient proof or a presumption of primary residence. In other words, checking an address on one’s return guarantees nothing if the material elements contradict this information.
Supporting Documents Examined by the Tax Administration
To establish the reality of the occupation, the administration can rely on a set of concrete indicators:
- Energy consumption bills (electricity, gas, water) showing regular and significant use of the dwelling throughout the year
- Bank statements attesting to regular expenses (shopping, services) near the claimed residence
- Home insurance certificates, registrations with local services (primary care physician, children’s schools), or administrative correspondence received at the address
- Contradictory documents, such as a distant work address without justification for travel, can significantly weaken the case
Material occupation remains the central criterion. A dwelling occupied for less than half the year will be difficult to qualify as a primary residence, regardless of the taxpayer’s declaration.
Income Tax and Capital Gains: A Distinct Logic
The nuance introduced by the Council of State specifically concerns housing tax. For income tax, the rule remains different: a married or civil partnership couple forms a single tax household and can only declare one primary residence on their joint return.
This distinction has direct consequences on capital gains. The resale of a primary residence benefits from a total exemption from capital gains tax. If the couple’s second dwelling is not recognized as a primary residence for income tax purposes, its resale will be subject to capital gains tax applicable to secondary residences.
Cohabiting Couples: A More Flexible Default Regime
Cohabiting partners do not form a joint tax household. Each files their own income tax return and can therefore freely designate their primary residence. Two cohabiting partners living separately each have their own primary residence without needing to justify an exception.
This situation is sometimes underestimated. An unmarried and unregistered couple owning two distinct dwellings has no special steps to take: each partner declares their own residence.
Seasonal Rental and Double Housing Tax: An Unknown Trap
The Council of State also clarified, in a ruling dated December 23, 2024, that an owner renting out a furnished property for short durations may be liable for the housing tax on this property if they intend to retain possession or enjoyment for part of the year.
A couple who buys a house in the countryside, spends several months a year there, and rents it out seasonally for the rest of the time does not automatically benefit from an exemption. The tax qualification depends on the actual use and the intention to retain enjoyment of the property.
This point directly affects households alternating between two dwellings with the rise of remote work. The second dwelling, even if regularly occupied, may generate taxation under the housing tax for secondary residences, along with additional municipal surcharges in certain high-demand areas.
Separation of Property and Abandonment of the Marital Home: Classic Cases
Apart from recent case law, two situations already allowed married couples to declare distinct residences:
- The separation of property regime with separate residences, when spouses effectively live in two different dwellings and this situation is consistent with all their administrative documents
- The abandonment of the marital home in the context of a separation procedure, where each spouse can designate their own tax domicile as soon as the separation is effective
- Professional constraints requiring one spouse to reside in another city, with a work contract and deductible double residence expenses under certain conditions
In the case of double professional residence, housing and travel expenses can be deducted from taxable income, but only if the situation is imposed and not chosen for convenience.
The issue of double primary residence remains a fluid topic in French tax law. The Council of State ruling of July 2026 opens a breach for housing tax, without altering the rules applicable to income tax or capital gains. Each situation must be analyzed tax by tax, with solid supporting documents attesting to the actual occupation of each dwelling.
