We run a two room guesthouse in the UK - we want to move to France- are we allowed to run a similar set-up if we find the right house? Two UK passports, one fluent French speaker.
Any advice?
You are now a third country national so need a visa to move to France. To run gîtes you need a visa that allows this specific work. To get that you need a business plan (in French) that forecasts a turnover of at least €28k and has been cleared by the préfecture where the property is. It is a catch 22 as you need to have the property before you apply for the visa. And that’s a risk as the visa is not guaranteed.
You need to chose the property carefully as in some areas there are so many gîtes you could struggle to get enough bookings.
Then there is a whole other process to register and start a business here.
It is all doable, but requires research, patience and a zen like capacity for bureaucracy.
(Edit just noticedyou are talking about a chambre d"hôtes not gîte. So slightly different and if anythng more bureaucratic. But equally doable if you are tenacious. And 2 roons would prob not be enough to meet financisl thresjold for two peoplr.
(Edit, actually the easiest bureaucratically and to minimise risk is to buy a going concern - as long as you check the books very carefully)
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Dear Jane,
Thanks for your concise and precise response. Very helpful as usual.
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Unless anything has changed, I do not go along with the above…
I have a house on my land that is openly run as a gite - not as a business, but it is a gite providing a revenue. I just declare the income in some box or other on the tax form where Mr M allows me to keep half tax free and taxes me on the other half. Gites de France look after sejour tax. Simples!
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You mean that little thing called Brexit?
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You are a LMNP (louer meublé non professional) and perhaps arrived here before Brexit and have a WARP card, or are a EU national?
Absolutely fine, and exactly as you say. Turnover under €28k you declare as micro-bic on your income tax form.
Unfortunately Ray Harris is no longer allowed to do that. His only option for a gîte is to be a LMP (louer meublé professional), which is a different thing.
By the way, if you paid to be classified which is around €175 for 5 years then Mr M would only tax you on 29% of your turnover. Depending on your income that could be worthwhile.
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OK, I admit not following the ins and outs of brexshit regarding residential status once I knew that Mr M was, unlike the facists on the other side, supporting those of us already here.
You are now saying that after brexshit, once granted residence, one can only run a gite as a business? Yes? That has all passed me by, so apologies 
Thanks for reminding me of the extra tax free income - a young lady in my local tourist office explained the same some time ago, but my laziness prevented anything happening - I will do it!
Hi Jane,
Would it be avantageuse to declare en régime réel if already on à salary.
Not quite, simply that to obtain a visa on the basis of planning to run gites there are conditions in income that must be met.
Plus, unless on the right visa, post-Brexit arrivals can’t run gites, or any other business, at all.
That’s a pretty big simplification but broadly correct.
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Yes, if your costs and charges are high. Micro-bic with classification you pay on 29% or turnover. And of course pay according to your overall income. So if your on-costs are more than 30% of turnover (or thereabouts) then very much worth looking at. The other thing to consider is that with reél you can claim dépréciation. However you need to pay an accountant to sign off a profit and loss account.
We do, because the figures work out for us and we pay no tax, so even with paying accountant it is in our favour. But very individual.
(There may now be a simplified reél, which doesn’t need accountant, but I’ve not explored that yet. )
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Thanks for the reply. So far régime réel looks the way to go for me.
I’m looking into buying a house and turning it into a gîte. And looking how I can offset the monetary gains over the years against the works needed.
The house will over the next few years need quite a bit of work (which I’ll do myself) initially painting and decorating and new kitchen and making safe if needed the electrical installation.
2nd year changing from bathroom to shower room and possibly a second shower room. Change the single glazed bedroom windows to double or triple glazed.
3rd year, change the other windows and maybe start the insulation ( the house doesn’t have very much if any).
not sure it works like this… except for work by professionals who provide invoices…
That’s what I’m looking into.
So far invoices for materials etc, plans scope of works, and photos no problem. Also if any electrical works need doing I’d like to offset the consuel inspection and report. The same for any aspestos
I won’t be invoicing the hours I work
Not sure that receipts for materials that you have bought can count against tax -only materials bought by the professional doing the work (I may be wrong -but worth finding out).
One additional complication -if we were to buy a house that had a gite and two rooms for chambre d’hote - are these two different activities?
Yes. But I think these activity codes can be combined in the same business and under same Siret. Would have to check. But isn’t a big issue either way u til you start hitting TVA (VAT) thresholds at around €77k.
You would need to check with an accountant what can be included in your accounts to be certain. We’ve not tried to include those sorts of costs (as we’ve not had them!).
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There’s a difference between the things that can be included on the annual balance sheet from the things that can be used to offset capital gains on sale.
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