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

What the tax treaty says

Treaty of 29 August 1990, in force since 1992. Rent (art. 6) and gains (art. 13) taxable in France.

How double taxation is avoided

Article 23 grants a credit equal to the matching Icelandic tax: in practice your Nice rent is not taxed in Iceland but counts for the 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%: Iceland is in the EEA.
• 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.

Iceland-specific taxes

• Capital income taxed at 22% in Iceland.

Declaring your Nice flat at home (Iceland)

• As an Icelandic resident you report all income and assets worldwide in your “skattframtal”. Foreign rent goes in the same boxes as Icelandic income; tax paid in France is stated in the comments field (section 1.4).
• The flat is listed in section 4.2 “Erlendar fasteignir”, at its official assessed value converted at the year-end rate, or failing that at its purchase price converted into krónur.
• Rent and French tax are converted at the average rate for the period the income was earned. Skatturinn may require proof of tax paid abroad: keep your French tax notice.
• Under Icelandic rules, letting housing generally counts as a business, with exceptions: the right box for a furnished seasonal let should be confirmed by an Icelandic tax adviser. Deadline: mid-March (13 March in 2026), 15 April through a professional.

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 Iceland 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.