I have heard and read that, unless you are "classée", the 71% tax reduction for gites will diminish to 50% for this Tax year. Has anybody else heard this? Two questions : we are taxed under the micro-BIC system as an Location meublée non-professionnelle (LMNP) - does this ruling apply to us, and two, how does one go about getting classée?. Surely not only through Gites de France, which is a private company.
This one is pretty clear, too :https://www.service-public.fr/particuliers/vosdroits/F2043
Thanks for the link Simon. As I understood it, its never been just Gites de France, but accreditation had to be someone from the list "Atouts France", but I could be wrong. I'm not to bothered about the number of stars or whatever, as we mainly rent to English or Germans - I just need to get "classée" for the tax reduction.Will have to do whatever they think I need. Very useful discussion, though - thanks again.
Here's an article in English about the new 2016 legislation:
Hi Peter and thanks for this - looks likes things have changed significantly for 2016!
So, what this means is that ONLY the establishments classified as Meublées de Tourisme will benefit from the 71% abattement in future. Everyone else will treated the same as a simple Location Meublée and receive the 50% abattement.
No tax benefit any longer of being affiliated to Gites de France etc....
Hi, Simon, This all started for us on Sunday when a French friend of ours, who runs a B&B, said that, starting this year, they are changing the tax regime. Subsequently, I found this on the net : http://www.leblogpatrimoine.com/immobilier/location-meublee-en-gites-ruraux-ou-gite-de-france-une-nouvelle-imposition-impot-sur-le-revenu-cfe-taxe-fonciere-a-partir-du-01-janvier-2016.html
thanks simon, I thought the tax office wouldn't get it wrong (well I hoped lol)
Rachel - in that case you are absolutely right to declare on line 5ND as per your tax office - you are renting out your entire main home, not just part of it. Your type of rental is classed as a location meublée classique.
we rent out our maison principale (we move out for 2 months)
so reading what you have said simon, i've now no idea why the tax office said to list it in 5nd
gross revenue is less than 10000€
also we aren't classified.
Peter - it's not really a confused area - it's pretty well documented and explained. Anyway - you still haven't said what it is you have read about these changes - it would be really helpful....
You're correct, a Meublé de Tourisme must be registered with your mairie (every 5 years) but being classified is a choice. Here's the form :
Some folks choose to be classified (star ratings etc) for the kudos and tax advantages - which may work for them. The tax form (2042C Pro) does most definitely differentiate between simple Location Meublée and Gites - because they are taxed very differently.
If you are classified you'll get documents to confirm it along with the duration of your classification and confirmation of your rating e.g. stars, epi's whatever. The Impôts don't need this info - it is YOUR responsibility to make sure you declare in the correct boxes.
However....you should already have a SIRET number (?) from your local Impôts (CFE section) which is requested on your declaration 2042C Pro on page P-1 RENSEIGNEMENTS COMPLÉMENTAIRES RELATIFS À LA DÉCLARATION COMPLÉMENTAIRE DES REVENUS. Having a SIRET also allows you to accept Chèques Vacances (ANCV).
You should have completed this form when you started your gite activity:
Hi, Rachel, On the 2015 tax form, the line for gites was 5NG to 5PG. http://www2.impots.gouv.fr/documentation/2015/brochure_ir/index.html#147
Its a confused area . According to this site http://droit-finances.commentcamarche.net/faq/7359-meuble-de-tourisme-la-reglementation#definition, meuble de tourisme should be registered with the mairie, but classement is a choice. When we started, we went along to the impot, and simply did what they said, and no one has objected since then. The tax form clearly differentiates between ordinary location meublé and gites ( http://www2.impots.gouv.fr/documentation/2015/brochure_ir/index.html#147). I will need to get out our tax forms and see where I put the revenue.
One question, if you are classé, do they give you a number, which you have to pass on to the impot, because there does not seem to bee a space on the tax form for a registration number?
Ok Rachel - by declaring your revenue in box 5ND you:
- are not renting part of your principal residence
- are not affiliated to or classified (stars etc) by any recognised organisation
- are declaring as a non-professional renter (LMNP) under the Micro-Bic regime
- are declaring a simple furnished letting (location meublée) and NOT a holiday letting (location de meublés de vacances / meublé de tourisme)
- are declaring gross revenue without any deductions
- are declaring that your gross revenue does not exceed 32,900€
- are receiving tax relief on only 50% of your gross revenue and you will therefore pay your nominal income tax rate on the other 50% plus 15,5% social charges.
This is what the impots told me last year:
1- Concernant le gîte les revenus sont à déclarer en locations meublées soit la ligne 5ND.
Peter Hi - I did actually read your original post! I'd be interested to know what you have heard and read and what this new ruling is?
However - the way you describe things, indicates to me that you have got away with using the preferential rates for the past 15 years although you were not entitled to do so!
Gites, Meublés de Tourisme (locations saisonnières) - essentially the same thing under the Micro-Bic / LMNP regime. It has always been the case that those establishments who are classified or affiliated to an agreed organisation - benefit from the more advantageous taxation on only 29% of their gross revenue. So, those who are not classified and not affiliated pay tax on 50% of their gross revenue.
Anyway - it'll be great is you can share the new info you refer to....
Hi, Simon, Maybe the case for gites, but we have been running one (but not classé) for 15 years, under the micro-bic regime; location meublée non -prof. (LMNP), ie location saisonniere, and we have always had the 71%. Hence my question. In the past, I think gites were covered under this regime, but perhaps now they are tightening up?
Nothing new there as far as gites are concerned - that’s always been the case. You need to be classified to benefit from the more advantageous taxation rate i.e. only taxed on 29% of total revenue under micro- bic.
Classification or affliation to the likes of Gîtes De France is not cheap so you need to way up if it’s worth going down that route. You may find it more cost effective to be taxed on 50% of your revenue depending on your turnover.
See here for authorised classification organisations:
I am in the same position, we just rent out our main home, and include the turnover on our tax return under lmnp, would be interested to know too.