In brief: since 18 July 2026, a French government order has reduced VAT to 5.5% on the installation of eligible reversible air conditioning systems (air-to-air heat pumps) in homes completed more than two years ago. The reduced rate applies to the entire project — equipment, accessories and labour — where previously equipment and supplies were taxed at 20% and labour at 10%. For owners of second homes and villas in Cannes, this represents a meaningful saving on a high-end Daikin installation. Prestige Air, your specialist installer on the French Riviera, explains how it works.
What changed on 18 July 2026
An order dated 13 July 2026, published in the French Official Journal on 17 July, added air-to-air heat pumps to the list of energy-renovation works eligible for the reduced 5.5% VAT rate under Article 278-0 bis A of the French General Tax Code. Air-to-water heat pumps and Daikin Altherma thermodynamic water heaters were already eligible; reversible air conditioning now joins them, finally recognising the heating efficiency of this technology.
For a property owner in Cannes, the practical effect is simple: a professionally installed, eligible Daikin system is now invoiced at 5.5% VAT on the complete project rather than the previous mix of 20% and 10%.
The four conditions to qualify
- Property age — the home must be used for residential purposes and completed more than two years ago. Primary and secondary residences qualify, which is decisive on the Riviera where so many prestige homes are second residences.
- Energy performance — for units up to 12 kW: energy label A++ minimum for a single-split system, A+ minimum for a multi-split system, in both heating (SCOP) and cooling (SEER) — the threshold must be met in each mode, not on average.
- Refrigerant — compliant with current F-Gas regulations. The eligible Daikin ranges use R-32, which meets the requirements.
- Connectivity — the system must be connectable to a digital network for remote temperature scheduling and control, via the free Daikin Onecta app.
Which Daikin systems qualify?
Single and multi-split wall units. Daikin’s design-led wall ranges — Emura, Stylish and Perfera — are the natural choice for elegant Cannes interiors and are widely eligible. On multi-split systems, the MXF range is around 85% eligible, while MXM configurations built around high-efficiency indoor units (Emura, Stylish, Perfera) meet the criteria in roughly 96% of combinations. Because eligibility depends on the exact combination installed, our team generates the energy label for your specific configuration before quoting.
Larger villa projects. For a whole-home installation across several rooms, a multi-split configuration built around the high-efficiency wall ranges is the usual route to the reduced rate, and the one we specify most often in the villas of California, La Croix-des-Gardes and Super-Cannes. Larger plant is assessed case by case: we confirm the position on your exact configuration before quoting rather than assuming it.
What it means for a Cannes villa
On a full ducted or multi-split installation for a Riviera villa — frequently between €15,000 and €40,000 before tax — moving the whole project to 5.5% VAT typically saves €2,000 to €5,000, applied automatically on the invoice, labour included. For a discreet Daikin Emura multi-split serving several bedrooms of a seafront apartment on La Croisette, the saving still runs to well over €1,000.
Beyond the tax saving, an eligible installation is by definition a high-performance, connected, future-proof one: A++/A+ efficiency, R-32 refrigerant and full remote control — exactly the standard a prestige property deserves.
Frequently asked questions
Does the 5.5% rate apply to my second home in Cannes?
Yes. Both primary and secondary residences qualify, provided the property is residential and more than two years old.
Is a discreet ducted system for my villa eligible?
Yes, where the installed combination meets the performance criteria — we generate the energy label for your exact configuration and confirm the position before quoting.
Who applies the reduced rate?
Your installer invoices the 5.5% rate directly, based on a short certificate you sign with the quote. There is no refund procedure to follow. Prestige Air keeps the required supporting documents — energy label, F-Gas compliance and proof of connectivity.
How much can I save?
Compared with the previous 20% on equipment and 10% on labour, the reduced rate represents roughly 10–12% of the total price including tax.
Plan your Daikin installation in Cannes with Prestige Air
Our team designs, installs and services premium Daikin, Toshiba, Mitsubishi and Hitachi systems across Cannes, Le Cannet, Mougins, Mandelieu-la-Napoule and the surrounding French Riviera. We advise you on the eligible Daikin models, verify your exact configuration and issue a clear quote at the 5.5% VAT rate. Contact us for a complimentary consultation and quote.
Information current as of 24 July 2026, based on the order of 13 July 2026 (French Official Journal, 17/07/2026) and official Daikin France communications. Provided for general guidance only and not as tax advice; final eligibility is assessed on the installed configuration.