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

What the tax treaty says

Treaty of 28 April 1980. Rent (art. 6) and property gains (art. 13) taxable in France; the protocol treats shares in property companies like the property itself.

How double taxation is avoided

Exemption with progression (art. 24). With Hungary’s 15% flat rate, progression has no practical effect: tax is paid in France.

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.

Hungary-specific taxes

• No wealth tax. Whether the Hungarian social contribution reaches exempt foreign rent is not established.

Declaring your Nice flat at home (Hungary)

• Income exempt in Hungary under a treaty is shown, for information only, on line 57 of the annual “SZJA” return (e.g. “25SZJA” for 2025), but only if you must file a return anyway.
• The NAV prepares a draft return (“adóbevallási tervezet”) that normally does not include your foreign income: complete it yourself before the 20 May deadline, otherwise it becomes final as is.
• Conversion: euro receipts are converted into forints at the official Hungarian National Bank (MNB) rate on the date of receipt.
• Keep your French tax notice and rent statements; whether the Hungarian social contribution applies to this exempt rent should be confirmed by a Hungarian 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?

The protocol covers shares in property companies like property, which includes an income-tax SCI; Hungary’s classification of the SCI is unconfirmed. A corporate-tax company would move distributions under the dividend article, with credit rather than exemption.

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) is simplest.

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 Hungary 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.