What the tax treaty says
Treaty of 20 March 2018, in force since 2019. Property income (art. 6) and gains (art. 13) taxable in France.
How double taxation is avoided
Exemption with progression (art. 22) for directly held property.
Free assistance
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Hand over my applicationOn 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.
Luxembourg-specific taxes
- No personal wealth tax in Luxembourg.
Declaring your Nice flat at home (Luxembourg)
- Nice rent is reported on the “modèle 100” form, under “Revenu net provenant de la location de biens”, in the “Revenus exonérés” column: the form requires all non-Luxembourg income to be declared.
- No specific property reporting duty and no personal wealth tax in Luxembourg.
- For 2025 income, the return must reach the tax office by 31 December 2026, or a late-filing surcharge may apply.
- Watch point: have a Luxembourg tax adviser confirm the net amount to report, which may not match the French result (micro-BIC allowance, LMNP depreciation).
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?
Verified trap: under point 5 of the protocol, income received through a French partnership such as an SCI is not exempt in Luxembourg; only a capped tax credit applies. An SCI can therefore cost more than direct ownership.
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), which keeps the exemption. Avoid the SCI by default.
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 Luxembourg 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.