habitation and fon increase with gites.

[holliebabes]

can anybody tell me now that i have finnished 2 gites and built a pool will my hab and fon bills increase?

i understand that my hab will remain the same as myself and hubby are the only permanant residents all year round.

any info would be grateful

thanks in advance[8-)]

[Cassis]

Both taxes increase.  If the gites are habitable and furnished on 1st January then you pay taxe d'habitation for that year.

Taxe d'Habitation

[Moorejw]

You are allowed 2 years tax free from the completion of your renovation. We have just paid the first taxes on our gite which we completed 2 years ago. It is less than the taxes for our house but not by a lot!

[Cassis]

EDITED/  Taxe d'habitation is still payable, though not any increase in foncière for 2 years from date of completion (you still pay the same taxe foncière as before) as the Moores say.

[holliebabes]

sorry perhaps it was the way that i worded it.we are ready to start letting the 2 gites from jan 2007,so i presume from the other reply that it will be 2 years before i get hit with more money to pay.

we will be reg for tax and have a siret number.

lets hope that they feel like being kind!!!!as i have no idea how much money we will take as we all know or have been told that we have entered into a saturated market with gites,and that gites are dead in the water.(always somebody wants to put the dampners on your dream!!)

we are realistic,but did not come and live in france with a fortune saved in the bank,so need to make things work.i have already received a bill for 1500euros which is payable in two instalments that i understand is for converting the outbuildings into habitable space.

i am just worried that there are some more bills lurking around the corner!

thanks for taking the time to give me some information.

[Cassis]

I know - they all seem to arrive at once.  At least you've got until end of 2007 (almost) before the next lot arrive.  Have you paid any for the past year?  I think you can opt for the

spreading of payments if you've paid at least one year's worth - I'm not sure when the deadline is/was for opting for this for 2007, though. 

GOOD LUCK WITH EVERYTHING.

[holliebabes]

we have paid fonciéres since we have lived here approx 2 years,but have not paid any hab we have declared all savings and they have returned the hab request as nil to pay!! and we have an english advisor/accountant here and we have been told that  as we are living on savings until the gites start to generate an income then will not have any hab to pay,and poss will not pay hab after the first year of takings as they might be below the threshold.

i have to say i get so many conflicting opinions that my head is swimming,but you sound like you know what you are talking about,thanks again

[Cassis]

If your income is below the threshold then no, you don't pay any taxe d'habitation.  So in your case if you haven't paid in the past then you'll have nothing to pay in the future either, until your financial circs alter.  You still have to pay your TV licence fee, stuck on the taxe d'hab bill (unless you've no telly or are disabled, or on income support, or over 75). 

[nimportequoi]

If you have registered your gites, you will be liable for taxe professionelle and not taxe d'habitation on the gites themselves. You will only pay taxe d'habitation for your own residence.

[Cassis]

If you want the full low-down, in detail and official, it's all here:

Taxe Foncière

Taxe Habitation

Hope this helps.

[Pun]

As far as the pool goes, I know that as we have just nearly finished having one put in (by a local company) that when finished both the company and us have to inform the mairies dept that the work is complete and we will then have a re-rate for the property, by doing such work you have increased the value of your buildings etc and when you bought the building you payed property tax on the then value of the said building, now its worth more and so you pay an increased property tax. if you decide to sell after owning it for 15 years your property tax would be nil. and every year up to 15 years this tax de-creases year by year.

 

[Anyone for Cricket?]

I think you are talking about capital gains tax here Pun, that is the only tax that decreases year on year up to 15 years, this has no affect on the tax you pay annually (Fonciere and Habitation )the Fonc tax can go up year on year as rates are increased for your area much the same as council tax in the UK works.  The Habitation tax depends on your situation and if you earn below the threshold then this tax is adjusted accordingly, our was very low this year.  I believe that as long as you are up front in telling the mairie that you have started and then eventually completed renovation work they will make an allowance but it is dependant on you being honest and quick to inform them of the situation, it is not a legal right more a case by case thing.

The bit that confuses me is seeing a whole gite complex with 6 plus gites for sale stating a habitation figure of 600 euro and a tax fonc of 1000, how can this be the case, I guess they never told anyone they renovated and now have 800 sq meters of livable space??  On the same website I've seen the reverse a small detached cottage with these sorts of figures seemingly vey high for the space, perhaps this one was too honest??  How is the tax calculated?