On Long Term Stay Visa can you run a B&B?

I do understand that we cannot work once we are in France as part of the long term stay visa requirements, so we don’t take a job from a French citizen. But does that apply to renting out a gite on your property? We are looking at houses with gites to accommodate friends and family but while it’s empty, we’d love a bit of side income. Is that legal?
Thanks for any advise!

Income from renting out a gite is OK because it is passive or “unearned” income. So as long as you employ a local person to do the actual work involved in the changeovers and marketing there is no problem.

To expand on Sandcastle’s response you have to contract out ALL the actual work. Marketing, cleaning, welcoming guests, changeovers, billing, etc. You can maintain the property but that’s all.

You will also have to register with the Marie, with INPI, declare the income and pay tax and social charges (if no S1). If the turnover if over €5000 then will also have to pay CFE - cotisation foncière d’entreprises. You also need to register with the tourist office and pay tax de séjour. And inform your insurance which may increase your premium.

Should you wish to sell your property with 2 years of renting then you will be liable for capital gain on the proportion used for this gîte.

Gone are the days where this was a nice side hustle, easy to do, and a useful way to cover bills. The requirements for new residents without the right to work change everything so I imagine that very few people do this. A lot of hassle for near zero income once you’ve paid fees.

Think about it once you’ve been here 5 years and have gained the right to work.

(Oh and be careful about doing this for cash. Some French have a real fondness for reporting on neighbours and illegal working is serious.)

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Thank you SO MUCH! Invaluable information.