Many people who operate as AE's and have properties which exceed the standards required by Gites de France are forced into paying for an inspection and receive no bookings from Gites de France at all. Gites de France is not a government organisation and is yet another example of businesses profiting from a new law.
Remember the need to have breathalysers in our cars?
I am sure that there are many French people who do not declare their income, as many of our French friends were totally astonished when we said that we would do so.
The French tourist industry is being held to ransom by hoteliers who believe that everyone wants to stay in a hotel. They do not.
French campsite owners must be splitting their sides with laughter and waiting for a bumper year!
Gite owners often send their guests to local restaurants, who benefit from their custom.
The last time we stayed on a French hotel on our way to UK, we cancelled our return booking because it was poorly run and overpriced.
The French do not want competition because it forces them to up their game.
Personally I think this proposal is a good idea for 2 reasons. First it will hopefully protect the person renting by ensuring that the property meets certain standards. How many times have SFN members during their region/area research prior to buying a property arrived at a property which was totally unfit for purpose? Secondly it will eliminate a huge whole in the tax loophole portfolio.
Interesting reading. We have run gites and a B&B for 20yrs in France, sold our first one which just had a declaration at the Mairie and the local douanes for the licence for doing basic drinks ( even hot non alchohol based drinks came under this licence) and declared the revenue generated on our income tax form - there is a tax rebate on the amount, I'm not sure how much now as our new venture is managed differently. In France you have the CSG tax to add as well so that too could add to the confusion generated by the Mail article. As far as I understand it you can still run a B&B or gites in this very simple way but have to declare at the mairie if you want to be above board and for your insurance to cover you in the event of an accident. You no longer require a licence from the local douanes for breakfasts but if you do dinners with wine you are supposed to do a 3 day course which costs around 700euros....In alot of Anglo saxon countries like Australia you do too if you serve alcohol.
If you want to have any grants or funds from local government you are now requested to be listed with gites de france or one of the other organisations and therefore comply with their standards but in no way is this compulsory - a bit like hotels having stars or not.
We decided to operate our new venture differently as previously couldn't deduct any costs so now have a B&B and gites run as a full blown business with all the pros and cons...quite similar really to what a hotel would pay but we don't adhere to gites de france or any other organisation, we are completely independant and rely on a good accountant to help us out, the mairie will also help if you need advice.
Hope that helps
Thea
I heard already of A Brit (resident in the UK) who let out his holiday house in France on unwanted weeks via a website. The French tax authorities were web searching and found their information and fined them I believe 12000 euros for undeclared income. There are masses of gites, chateaux and manoirs rented out in order to help defray the enormous costs of maintaining such properties. Should prove to be very interesting and should keep an army of tax zealots going. In fact you are pretty lucky to find any hotel accommodation in July and August, and they may not want your noisy children, pets, dinghy etc etc etc. Often they will not take peak bookings unless you go half board as well.
Tax take on rent is I believe about 35.5% but you are allowed some expenses. Those who rent out via the main websites have to pay huge commissions too. Should do wonders for tourism in France.
I think I'll stay at home- it will be cheaper! Should add that I do declare rental income on my former personal holiday cottage but as CAF pay it it would be rather stupid if I did not!
The tax is not fun but paying a heavy fine would not be fun.
So many people have rental properties to create.
Of course its normal that they pay tax and now this will just get more people renting there houses or flats in cash only .This gouvenment are pushing people into this situation more and more
It only stands to reason that someone renting a gite, or holiday home pay tax on it. I'm against paying most taxes, but when you're in a country where property owners pay tax to accomodate tenants... the rules are the rules, and unfortunately, it's too easy for a foreign person to come in, buy a property, and make money off it under the table.
I'm sure that all those "retired" gite owners will come down on me, but, it's not me making the laws here, is it.
We all get by as best as we can.
But we all have to pay tax.
This is the anger of hoteliers calling out against possible touristic
competition.
The tax on hotels is far greater than that of a B and B
but, if run well a hotel could be rewarding.
But I hope that we are not going to brew another circle of conflict...
Christmas is approaching and I hope that it is followed by a better year.
Now I understand why our friends in the next hamlet are up in arms. They have two gites attached to their house. They are retired functionaries who have low pensions, so make up for it during the summer by letting them. These are not second homes in any sense, but they are jumping up and down in rage about something I couldn't get the hang of. I think it must be this.
However, that being a Daily Wail version, perhaps we all ought to look at the real story wherever that may be found. We, fortunately, are not affected.
I have mentioned it too.
Not sure if the aim is to increase tax revenue, to destroy the tourist industry
or if it is a puff of fog moving across the countryside of France.