Registration/tax professionelle/ mairie

[mike.m]

Bonsoir,

             We've just (July) opened our c/d and would value the wisdom of older heads on a couple of items that we now have to deal with .

The CdC advised that if this was our main source of income it was obligatoire to register and  we have done so . Along with the expected paperwork from the social security etc we have now received a request from the people at the tax professionelle asking about the proportion of the premises that will be used for business and this is what  worries me . I assume that this is a standard letter sent to all new busineses and I want to ask if chambres d'hotes are treated in the same way or is there an exemption or special treatment since they are residential properties ?Also are there capital gains implications down the line? I saw on an earlier thread (from cassis ? ) that from August all c/ds may be required to register so perhaps this is a subject of general concern . Feedback especially from folk who have registered their c/ds would be most welcome before I fill in the form .

I also would welcome guidance on the liason with the mairie ; are we supposed to ask for permission to open the c/d ( in which case its a tad too tard pour nous ) or simply to advise as a matter of courtesy , which I hope is the case.

 

            Cordialement .

[Quillan]

With reference to the registering with the mayor. There is at present no inspection etc required to 'register' with the mayor. All CDH's (B&B's) must go and tell their mayor and have some form of receipt to prove they have done so. This can be done by letter, electronically (I believe this to mean email or fax) or by physically visiting the mayor. The mayor is then obliged to forward this information on to the prefecture. Have a look at the link provided in that thread for more info.

As to Tax Proffessionelle on your property I would stay on Tax de Habitation (or however it's spelt) as to be honest you probably won't have to pay it because you won't earn enough in the first few years where as I believe that if you register for TP you will have to pay something although I seem to remember somebody saying it's less than paying TH but you best check up on that.

As far as selling the house I would tend towards selling the house normally and the 'business' separately which I was told would be valued as an average of the last three years turnover although never having sold a CDH I don't know how accurate that is because it's from and immobilare. I guess a chat with the notaire might be the best way to find out and few quid spent now may save a fortune latter on.

[mike.m]

Hi Quillan ,

Thanks for the advice; I' ll organise a contact with the mayor post haste .

On the tax professionelle I wasn't clear as to which thread/link you were referring ? Can you clarify please . Also are you saying that we have a choice as between T/Prof. and T/ dHab and that its we who choose not they who decide . Its an either / or  , not a both ?

 

                                                        Best Regards

 

                                      

[Quillan]

The new 'Law' I was referring to can be found here

http://www.legifrance.gouv.fr/WAspad/UnTexteDeJorf?numjo=ECER0759563D

The thread containing the above link can be found here

http://www.completefrance.com/cs/forums/1003768/ShowPost.aspx

Have a 'search' around the forum there is loads of stuff on settng up a B&B.

[mike.m]

Many thanks Quillan ,

 

                       The link gives everything I need on the Mairie question . As to TP / Thab I've done a couple of hours searchng with no definitive answer . Several comments (including  Will ) say that TP is required . Others take the opposite view . One recommended replying to the tax office with a request for  ' degrevement totale ' on the basis that this was a principal residence (apparently successful ).  I am inclined to acquire the minimum  number of tax burdens (and tax professionelle has overtones of possible problems with capital tax down the line) . So I.ll pursue the degrevement route unless others have better counsel over the next couple of days.

[Jo Taylor]

Taxe professionelle is normally payable by individuals and companies carrying out non-salaried work. It’s levied at between around 15 and 20 per cent (the exact percentage varies with the commune) of a ‘base’, which is currently 8 per cent of your annual income, including VAT. For example, if you earn €30,000 per year, your tax base will be €2,400; if taxe professionelle is levied at 20 per cent in your commune, you will pay €480 per year.

Taxe professionelle is assessed as follows: in your first year of French residence, you pay nothing; in your second year, you pay according to your earnings in Year 1 (pro rata if you moved to France part way through the year); in Year 3, your tax is again based on your Year 1 earnings, in Year 4 on your Year 2 earnings, and so on.

A gîte owner is exempt if the property is registered with Gîtes de France or another official organisation, e.g. Clévacances or the Comité Départemental de Tourisme. Exemption also applies where the property is your principal residence, provided the rental is ‘reasonable’. In effect, most bed & breakfast (B&B), gîte and letting businesses aren’t liable for taxe professionelle, but check with your accountant or local trésor publique.

Jo Taylor

[mike.m]

Hello Jo ,

                Thanks very much for the advice ; I will incorporate your comments into my letter to the tax-folk and hope for a favourable response . Hope this is also of use to later searchers for info so if others have knowledge to pass on , please add your experiences .

 

                                                      Kind Regards