tax and purchasing gites

[Damoandgeorgie]

We are in the process of purchasing a property to renovate and turn into gites over the next three years while we work overseas. Our question is to whether it is best to purchase the property as a company for tax purposes or just normally and worry about the business later. Any suggestions?

[LynneG]

Hi

I have found this article interesting and having done further research can testify to it's accuracy.

www.grapevine.fr/features/money/gitestax.htm

Lynne

[Owens88]

I have read that useful site. THank you.

 

Now I wish to add a question.

 

I have a place that we rent out ( a bit) and also use to stay in (a bit).

I went to the Mairie and asked what local taxes I should pay. Eventually the answer was Taxe Fonciere but not tax d'Habitacion as it is a maison secondaire.

Today a bill for taxe d'habitacion dropped through the letter box.

Any more helpful pointers anyone ?

 

Thanks in advance

 

[Teamedup]

I have no idea why your Maire said that you wouldn't pay taxe d'hab, that would be very hard to get around and is perhaps even more for maison secondaire than for residents.

[Charlie Nott<P>Many Thanks<P><P>Charlie Nott<P><P><a target=_blank href="http:www.giteshols.com">www.giteshols.com<A><P>]

tax d'hab is peanuts against tax fonc. with us it is 40 euro v over a grand for our house and 4 gites.

[Fontremy]

Charlie, you must be very lucky or they don't realise what you've got as both of our bills are around 2,500 Euros for a similar place in 17! We had a shock when the bill dropped through the letter box today.

[Miki]

Something is very wrong with Charlies demand for taxe hab.

Against a bill of 1000€ for fonciere, I can only see one possible way of such a low taxe hab and that is an income of almost zero and other factors perhaps ?

You must know how it is that low Charlie, because to my mind that is not normal at all.

 

 

[Charlie Nott<P>Many Thanks<P><P>Charlie Nott<P><P><a target=_blank href="http:www.giteshols.com">www.giteshols.com<A><P>]

In the post this morning I have jsut had this years Tax D'Hab and guess what it is now gone up to 567 Euros. As you say in our first year here we had all expenses and no income. Last year we actually managed an income. I'm still trying to work how the arrived at the figure!

[Ianhaycox]

Are you paying Tax D'Hab on your gites ? I don't think you should be. We went to the Hotel D'Impot with cadastral, house and gite (3) plans (internal & external) to calcuate floor areas, and our Tax Fonciere and when down to 550 and Tax D'Hab to 50. No Tax D'Hab on the gites.

I didn't think that Tax D'Hab was based on income, isn't that Tax Professionelle ?

[Miki]

Tax hab isn't BASED on income but if one is on pretty low income, an adjustment will automatically be made.

For the life of me Ian I cannot see why you pay such low hab, 50€ for taxe hab is wrong as in Charlies case. One can't pay 550€ taxe fonc and just a pittance for taxe hab unless something is wrong somewhere.

A little old house with just a few rooms will be a lot more than that. I can only think that either your income was very low in the previous year or you live in the wilds and the rooves are off the gites which obviously they are not. You could find though, that if you are registered as a gite business, your taxe prof will more than make up for low taxe hab.