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

What the tax treaty says

Treaty of 21 July 1959, last amended in 2015. Property income is taxable only in France (art. 3); property gains in France (art. 7).

How double taxation is avoided

Exemption (art. 20). Special feature: § 32b of the German Income Tax Act removes the progression clause for rent from property in the EU. Your Nice rent is exempt in Germany with no effect on your rate.

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.

Germany-specific taxes

• No wealth tax in Germany.
• Capital gain: under German law, not taxable after 10 years of ownership.

Declaring your Nice flat at home (Germany)

• Your Nice rent does not go on your German return: the official “Anleitung zur Einkommensteuererklärung 2025” states that treaty-exempt foreign income is entered in “Anlage AUS” only if it is subject to the progression clause, which rent from EU property is not (§ 32b EStG).
• No reporting of the property itself and no wealth tax in Germany. However, if you hold it through an SCI, acquiring, selling or changing an interest in a foreign partnership must be notified to the Finanzamt (§ 138(2) AO), with the tax return and no later than 14 months after the year end.
• General deadline for the 2025 return: 31 July 2026; it is longer if a Steuerberater prepares the return (ask them for the exact date).
• Watch point: the absence of progression in principle cuts both ways, so a French loss (LMNP depreciation) does not reduce your German tax either. Still keep your French tax notices to evidence the exemption if the Finanzamt asks.

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?

Germany generally treats the SCI as a transparent partnership. But an SCI letting furnished becomes liable to French corporate tax: France then sees a company, Germany a partner, and selling the shares becomes hard to classify.

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) fully benefits from the German exemption without progression. One of the most favourable cases in Europe.

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 Germany 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.