Residence Tax Exemption for Residents of Nursing Homes: What You Need to Know

Elderly individuals living in nursing homes or specialized facilities are exempt from the housing tax on their primary residence. However, certain conditions and limitations apply, particularly with regard to second homes.

The exemption from the housing tax for residents of nursing homes applies only to their primary residence. Second homes remain subject to the housing tax, and there are currently no plans to extend the exemption to them. However, seniors with limited means may be eligible for specific exemptions and tax credits, subject to certain conditions.

Exemption from the housing tax for the primary residence

Since 2018, the housing tax on primary residences has been gradually phased out. Individuals who retain the right to use their primary residence before moving into a long-term care facility for the elderly (EHPAD) are exempt from the housing tax on secondary residences (THRS) for that property.

Maintenance of the housing tax for second homes

The housing tax has been maintained for second homes. The Ministry of Economy and Finance believes that exempting homes that served as people’s second homes prior to their admission to nursing homes from the housing tax would violate the constitutional principle of equality before taxation. Consequently, the Ministry of Economy and Finance does not plan to extend the housing tax exemption to individuals residing in nursing homes.

Tax Exemptions and Tax Credits for Low-Income Seniors

Elderly individuals residing in nursing homes may, provided they meet the residency and income requirements, benefit from the exemptions and tax credits provided for low-income seniors. These measures are designed to reduce the tax burden on the most vulnerable individuals.