France has been a world leader in tourism for years and the market for independent accommodation in popular tourist areas has boomed. Here are some tips specifically for Gite or B&B owners, or anyone considering this as a source of revenue.
1. Gites & meublés de tourisme (gites and furnished accommodation) benefit from advantageous tax conditions. The annual turnover threshold for the simplified tax regime is limited to 81.500€, and 71% of turnover is deducted as costs before tax is calculated (2015).
2. Rental property must be declared to your Mairie using the Cerfa 14004*02 form which you can fill in online, or print off and manually complete. This ensures your property is listed by the Mairie and Office de Tourisme and may be passed to potential clients; some Mairies offer local signposts to help guests find you easily and it’s always worth asking if this is a service that is available.
3. If you want to boast a star rating on your property then you must apply to the accredited network for your category from the list supplied by Atout France here. After an inspection of your rental property, the organisation has 1 month to supply a certificate detailing your score from 1 to 5 stars, and the elements of inspection which determined their decision. You have 15 days to appeal their rating – without response from you the rating is considered accepted. Your star rating is valid for 5 years.
4. When does your rental deposit become part of your turnover for tax purposes? A deposit remains the property of the client until they take up their residency, and therefore a deposit received in 2015 for a stay in 2016 should remain in the account without declaration as income or accruing tax, until the balance of the reservation is paid in full.
Many non-French speakers need help with understanding their options when starting a new professional activity or making sure they have carried out the obligatory procedures for their new rental property. The best advice is to get reputable help if you decide not to go it alone…
By Jo-ann Howell of FrenchAdmin Solutions
