Moving To France

[Kim]

Hi, myself and my husband are looking to move to France. The Aquitaine area.  We would love to run a B&B there.  We are doing some intense research and would very much appreciate any information you can give.

Being a complete novice, how much would the taxes be on running a business like this?  We are looking at 5/6 Bedroom House around £300,000 - £350.000.  Letting out only 3-4 Bedrooms.  When we first move there the business may take a year to set up, would we still be charged Income Tax even though there would be no income at this stage?  The reason I ask is I keep hearing different stories from people who I feel are only guessing, stating that although your living there, the money you go there with is Taxable.....Please someone tell me our savings are safe from this?

Are there any other extra taxes in France I should know about appart from the H'Tax and Tax Fonciere?  Thanks in advance

Regards, Kim

[hoverfrog]

I think you will find that it is only the interest earnt on savings that is taxable. Income is income, and the only income on savings is the interest.

[Cassis]

Don't forget the French Wealth Tax on all your worldly possessions, worldwide.  Includes property and savings.  You start paying at about 750,000€ or thereabouts, though I think your main residence gets a 20% allowance.  I am not an expert on this.  If your main residence is costing 350,000 pounds and you've got the money to convert it to a viable B&B - probably another 50,000€ - I'm guessing you might be flirting with these limits.