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Gite income-- tax/cotisations/healthcare,etc


cassie

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We will move to France shortly but are "too young" to join the health service.

We have permission to turn an outbuilding into habitation and plan to rent it out as a gite.

We do not expect to get a lot of income...our idea is this should/may allow us to join the health service.

We expect to be employed using the " micro entrepreneur" system.

a)What taxes and cotisations will we pay on our income?

b)Is there a minimum level of income we will have to reach, or cotisations we will have to pay, before we get the state healthcare benefits?
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You appear to be mixing up 'micro entreprise' and 'auto entrepreneur' but I assume you mean AE because if you set up with ME you will be paying a minimum of €3000 in social charges for your first year, regardless of your income and this will increase every year even if your income doesn't. With AE, gîtes and chambre d'hôtes currently pay 12% of their TURNOVER in social charges. At the moment, there is no minimum level of revenue in order to qualify for health cover but this is likely to change in the future. If you register as AE and have NO revenue, you will be automatically be switched onto the ME and will be liable for the associated social charges the next year. To avoid this, you should close down your AE - but then you would need private health cover!
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[quote user="mayday"]You appear to be mixing up 'micro entreprise' and 'auto entrepreneur' but I assume you mean AE because if you set up with ME you will be paying a minimum of €3000 in social charges for your first year, regardless of your income and this will increase every year even if your income doesn't. With AE, gîtes and chambre d'hôtes currently pay 12% of their TURNOVER in social charges. At the moment, there is no minimum level of revenue in order to qualify for health cover but this is likely to change in the future. If you register as AE and have NO revenue, you will be automatically be switched onto the ME and will be liable for the associated social charges the next year. To avoid this, you should close down your AE - but then you would need private health cover![/quote]

Actually thats not really correct. When we joined we said we wouldn't earn enough so they gave us a letter to copy and complete which we then returned and ended up paying around 130 Euros. The problem is not many people know this and its not in the bureaucrats interest to volunteer the information (or any information come to that). The only negative side is if you go over the about that the €3,000 Euros (I think its a little more than that, or used to be) is calculated on then you have to pay the 3000 plus whatever the extra is and you have to pay the fixed second year amount as well.

We are still in the old system (Micro BIC) which works well for us but if you are just starting going the AE route is probably better.

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The latest information appears to be that you're ok with AE until 36 months or 12 trimestrial periods have passed with no revenue! This has amazing ramifications for English coming over to France. Add on the time when you're covered by the E121- and the 5 year residency requirement for being allowed to enter the French system is covered....? How long before this is picked up on is anybodies guess!
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http://www.apce.com/pid324/actualite.html?espace=1

You'll find this about 3/4 of the way down the page:

Actualité de l'auto-entrepreneur du 04/01/2010
Sortie du régime micro-social en l'absence de chiffre d'affaires - 04/01/2010
Le délai pendant lequel l'auto-entrepreneur peut bénéficier du régime micro-social sans réaliser de chiffre d'affaires a été rallongé. Désormais, les auto-entrepreneurs ne perdent le bénéfice du micro-social en l'absence de chiffre d'affaires qu'à l'expiration d'une période de 36 mois civils ou de douze trimestres civils consécutifs. Ce délai était auparavant de 12 mois civils ou 4 trimestres consécutifs.
http://www.apce.com/pid6137/regime-micro-social.html
Source : loi n°2009-1646 du 24 décembre 2009, article 71, Journal officiel du 27 décembre 2009, p.22 392



http://www.apce.com/pid6137/regime-micro-social.html  leads you to this, also about 3/4 of the way down the page:

Durée d'application du régime micro-social

Le régime micro-social s'applique pendant une année civile. L'option est renouvellée par tacite reconduction.

Elle cesse de s'appliquer :

- en cas de dénonciation expresse de l'entrepreneur. La dénonciation doit être réalisée avant le 31 décembre de l'année pour une application l'année suivante, auprès du Régime social des indépendants.

- en cas de déclaration d'un chiffre d'affaires nul pendant une période de 36 mois civils ou de 12 trimestres civils consécutifs.

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