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

What the tax treaty says

Treaty of 5 October 1989. Rent (art. 6) and capital gains (art. 13) on French property are taxable in France.

How double taxation is avoided

Tax credit (art. 24): Italy also taxes the income and deducts French tax, capped at the matching Italian tax. French social charges are creditable since 2016 according to the Agenzia delle Entrate.

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.

Italy-specific taxes

• IVIE: 1.06% of the foreign property’s value since 2024 (0.76% before), not due below €200; main residence exempt.
• Capital gain: under Italian law, a property held over 5 years is in principle not taxable.

Declaring your Nice flat at home (Italy)

• Rent is reported in the “Modello Redditi PF”, “quadro RL”, line “RL12” column 2: you enter the amount declared in France, with no deduction of expenses. The credit for French tax is then calculated in “quadro CE” (art. 165 TUIR).
• The property is reported in “quadro RW” (tax monitoring and IVIE calculation); in years with no change, quadro RW is not required for it, but IVIE remains due and is paid by F24 (code tributo 4041). Quadro RW allows a credit for property tax paid in the country of location: have your commercialista confirm that the French taxe foncière qualifies.
• For 2025 income, the Redditi PF return is filed online by 2 November 2026 (31 October falling on a Saturday); the tax balance is normally paid by 30 June, or by 30 July with a surcharge.
• Watch point: the tax credit is only granted for French tax that has become final. Keep each year’s French income tax notice and proof of payment.

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?

Italy treats an SCI as opaque: distributions are taxed as foreign dividends at 26%. A gain distributed by the SCI would be taxed, whereas direct ownership over 5 years is not.

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 as a non-professional furnished letting (LMNP) is usually the clearest: direct tax credit and Italian exemption of the gain after 5 years.

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 Italy 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.