Tax on gite income

[Tony C]

My wife and I are in our first year of running a gite business and are hoping some of the more experienced gite owners out there can give us some tax advice. We are resident in France and our expected income for this year will be approx 15 - 16000 Euros. We seek advice on registering if required, tax regimes, tax thresholds and what social security we can expect to pay. Any advice or helpful tips will be greatly appreciated.

[Eslier]

Your business should have been registered before you started trading. In other words the minute you advertised your gites or took the first booking you should have been registered.

Your registration will need to be back dated and your Social Charges will also be back dated so you may well find that you get a big bill to pay straight away.

Registering your business in the most beneficial way and knowing what you can write off against your business is not a simple matter. You will find it most beneficial to employ the services of a good French accountant to deal with this for you and to provide advice. The accountant will be able to give you an estimate of the charges you can expect to pay, but in all liklihood, you may not pay any income tax whatsoever. Social Charges are a different matter altogether. As a rough guide, if you register your business in one name only and don't employ anyone, then your Social charges are likely to be in the region of €4,500 per year (calculated pro-rata from 1st January) to start with.

[Will]

I think it depends on where your income arises from. If the gites form your main, or only, income then you will need to register it as a business, with all that entails.

If not, then you may get away with just declaring it on the appropriate part of your tax return as a micro-enterprise (box NO/OO, rental of furnished accommodation, non-professional).

[ChezShells]

Have a look at my reply on another post

http://forums.livingfrance.com/shwmessage.aspx?ForumID=283&MessageID=185716

 

[Opel Fruit<P><BR>Opel Fruit, Dept. 53<P>]

I think Eslier is misleading people, you don't HAVE to register a Gite as has been explained.

We pay a small amount of Tax (Impot) only, but then again we only take below the threshold.

[Teamedup]

Don't gites pay professional tax then?

[Miki]

[quote]Don't gites pay professional tax then?[/quote]

TU,

I guess the simple answer is, some do, some don't but still, they get you one way or another. If you pay Taxe prof, the likelihood is that your Taxe Hab is cheaper, if you do not pay Taxe Prof, then your Taxe Hab is likely to be dearer. Well that is how we have noticed it over they years anyway

This takes in to account that ALL your building(s) are declared correctly etc.