Cyprus resident: letting a flat in Nice, tax and structure

What the tax treaty says

Treaty of 18 December 1981. Rent (art. 6) and gains (art. 14) taxable in France.

How double taxation is avoided

Tax credit on rent (art. 25). Cyprus’s 2026 scale exempts the first €22,000 of income; above, 20% to 35%. A gain on foreign property is in principle not taxed in Cyprus.

On the French side: what you will pay

• Income tax at the non-resident minimum rate: 20% up to €29,579, 30% above (2025 income), or the average rate on option.
• Social charges: 7.5% (solidarity levy only) if you are covered by this country’s social security.
• Micro-BIC 2026: 30% allowance up to €15,000 (unclassified holiday let), 50% up to €83,600 (classified or mobility lease).
• Capital gains: 19% plus social charges, holding-period allowances. See taxation.
• Receiving rent: a French account is not required, a European (SEPA) account is enough. See receiving rent from abroad.

Cyprus-specific taxes

• Cyprus’s 2026 tax reform abolished the defence contribution on rent.

Declaring your Nice flat at home (Cyprus)

• Your Nice rent goes on the annual “TD1” return, filed online (TAXISnet), under rents, stating that they come from abroad and the French tax paid.
• The foreign tax credit is limited to the lower of French tax and Cypriot tax due on that rent: keep your French tax notice as evidence.
• Deadline: generally 31 July of the following year for employees and pensioners; other dates apply if you keep accounts, to be confirmed by a Cypriot tax adviser.

Form names and deadlines are those published by the country’s tax authority and change every year: have them confirmed by a tax adviser in your country.

What if you buy through an SCI?

No published doctrine was found on how this country classifies a French SCI (transparent or opaque): get local advice first.

Reminder on the French side: an SCI letting furnished becomes liable to corporate tax above 10% commercial receipts, and a company whose main activity is letting property must compensate from the first flat to get a change of use in Nice.

Which structure, generally?

Personal ownership (LMNP).

General guidance, to be confirmed with a tax adviser in your country and a French notary before buying.

Change of use, without travelling

No nationality condition: an owner living in Cyprus applies like a French resident, usually under a power of attorney. We prepare and file your application for free, then manage the property in English, at 20% excl. VAT (24% incl. VAT) for short stays or 15% excl. VAT (18% incl. VAT) under a mobility lease.