Every summer we get at least one message from a reader asking some version of the same question: is it actually worth buying a second home on the Côte d’Azur, or does the tax bill quietly eat the dream? It’s a fair worry, the numbers moved again for 2026, and a couple of them are worth knowing before you fall in love with a bastide near Grasse or a flat overlooking the bay.
A second home on the French Riviera can bring rental income and long-term capital growth, but it also carries a heavier tax load than a main residence, notably a secondary-residence housing tax that can be pushed up by 60% in tense markets, Nice among them. Whether it pays off depends on how much you’ll actually use it versus rent it out.
What we cover here:
- What a “résidence secondaire” gets you, beyond a holiday base
- The full list of costs, not just the purchase price
- What changed for 2026 on housing tax and capital gains
- How your own use of the place changes the maths
What a second home actually gives you
A résidence secondaire is, legally, any property owned in addition to your main home. It can sit empty most of the year waiting for your holidays, or work as a year-round rental, or something in between: weekends there, tenants the rest of the time.
Beyond the lifestyle side, it’s a tangible asset, useful later in life and for passing something on to children. Rented out, it becomes an income stream. Held for years, it can also generate a capital gain on resale, though that gain is taxable, with an allowance that grows the longer you’ve owned the property.
The full cost picture, not just the sale price
The purchase price is only the starting point. Add notary fees (generally 7 to 8% of the price on an existing property), agency commission where applicable, and if you’re borrowing, the cost of the mortgage itself. Buyers sometimes combine the loan on their main home with the new one and stretch the term, which lowers monthly payments but adds interest over time.
Once you own it, recurring costs follow: property tax, running costs, maintenance (a pool or a garden adds real money here), utilities, insurance, and if the building is in co-ownership, monthly condominium charges. None of these are optional, and together they can rival the mortgage payment on a modest flat.
What changed for 2026: housing tax and capital gains
Two figures are worth updating in your head if you last checked a few years ago. First, the taxe d’habitation sur les résidences secondaires can be increased by local vote in “zone tendue” communes, by anywhere from 5% to 60%. For 2025-2026, Nice is among the cities applying that maximum 60% surtax, alongside Paris, Lyon, Bordeaux and Toulouse, a detail that matters a great deal if you’re comparing Nice itself against a quieter commune nearby.
Second, the capital gains rules are shifting. Under the current regime, a total exemption from income tax on the gain has required 22 years of ownership, with social levies only clearing after 30 years. A 2025 budget amendment voted by deputies proposes cutting that 22-year threshold to 17 years for the income tax portion, while the 30-year rule for social levies stays as is. It’s a change worth watching rather than banking on, since the measure was still moving through the budget process at the time of writing.
| Cost or tax | What to expect |
|---|---|
| Notary fees | Roughly 7-8% of price (existing property) |
| Housing tax surtax, zone tendue | Up to +60% locally, Nice included for 2025-2026 |
| Capital gains exemption, income tax | Currently 22 years, a 2025 amendment proposes 17 |
| Capital gains exemption, social levies | 30 years, unchanged |
Figures gathered from French tax administration guidance and 2025-2026 budget reporting; capital gains rules were still under legislative discussion at the time of writing, always confirm the current version with a notaire before relying on them.
How you plan to use it changes everything
Profitability here depends almost entirely on the balance between personal use and rental time. A place used only during August and rented the rest of the year behaves financially like an investment property. A place kept mostly for the family, with only occasional renting, behaves more like a lifestyle purchase, still valuable, just not one to judge purely on yield.
The Côte d’Azur remains one of the priciest regions in France per square metre, but that same appeal, the climate, the coastline, the proximity to Monaco, Italy and Switzerland, is exactly what makes tenants easy to find if renting is part of the plan. If a house rather than a flat is more your style, we go into that search in our piece on buying a dream villa on the Côte d’Azur.
We’re not tax advisers, just two people who’ve spent a lot of time reading up on this and talking to notaires about our own more modest situation. Before signing anything, a notaire or a tax professional should confirm the numbers for your exact case, especially with the capital gains rules still moving. If you’d rather have a local agent handle the search on the Côte d’Azur, Haussmann Real Estate is one of the agencies that specialises in this stretch of coast. For the investment angle specifically, our article on what makes a real estate investment profitable pairs well with this one.
Published July 2026.