people who relocate to France decide to rent out a gîte, studio
or part of their house during the holiday season to make some extra
money or to gain access to the health system in France.
The rules have recently changed in
regards to the registration and taxation on furnished holiday lets,
a brief overview is below but should you need further information
please don’t hesitate to contact me.
If the revenue from your holiday let
gives a minimal income and IS NOT your main form of income then
you can be considered as a non professional activity. You need to
inform your local Greffe du tribunal de commerce and complete a
form P0i, opting normally for the micro régime which is the
simplest form of registration. If your revenue is over 23 000.00
€ OR you wish to register the business as a professional activity
(maybe in order to obtain health cover in France ) you would most
likely opt for the micro entrepreneur system (previously Auto Entrepreneur
Under this system you declare your
turnover quarterly and pay charges to RSI for social cover and into
the French Pension pot .
you are not registered with a recognized organization for holiday
lets such as the Gîtes de France etc.. then you are classified
as a service provider and can earn approximately 32 000.00
€ per year and will pay 22.7% in charges as opposed to 13.1%
if you are classified and considered a commercial activity, including
having a higher turnover limit of 80 000.00 € per year.
In terms of your personal tax declaration
and your rental activity, the rental income will be subject to income
tax along with any other forms of income you have to declare , after
a set reduction of 50% which is deemed to cover your expenses. If
your rental has been officially recognized then the reduction for
expenses is increased to 79% , which means that you are only taxed
on 21% of your gross income.
You will also have the annual CFE (Cotisation
Foncière des Entreprises ) tax to pay which is available
online only from October each year and is a professional tax based
on your turnover and the size of the rental property. You still
need to register your rental property as a furnished holiday let
at your local mairie via the Cerfa form 14004*02 , otherwise you
could face a fine
Taxe de Sejour
This tourist tax is put in place
by your local commune and is a daily charge per person that you
need to invoice separately.
find out the amount and how to declare and pay your taxe de Séjour
you need to see either your local mairie or Tourist office and
they will explain the charges and how to declare – some
area it is declared monthly , others online etc.. it depends on
where you live and how they operate.