What is in your heart?
How will your life change and can you take care of yourself financially,
Nothing is easy just now …is it?
May put a house on the market soon. It is in your area and is near Gensac,
Tha is true, A high end style gite can gross over 20000 euros but you have to pay tax de sejour
and cotistations,
We cover Gensac (33890) - we have a couple of houses for sale near the village.
Get in touch if you want help, valuation etc.
What does that translate to in terms of net profits?
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Not very much I would have thought. Less than 50%?
Hello Barbara!
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€10k profit presumably. The amount the visa authorities need is (weirdly) turnover.
So a gîte that pulls in €1500 a week for 16 weeks will do it - but you will have to be canny to get that! I have a feeling that there are many gîtes in the popular areas that struggle to get more than 8 weeks. (We get 20-24 weeks but are in the middle of nowhere with no completition and more of a niche market - so there are different business models)
I always think that very high end places have high end costs, so end up earning the same as us in profits. But we would not be happy with just 50% profit and watch costs like a hawk!
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Merci once more for your knowledgeable and sincere comments.
We have some thinking to do…
I imagine this is a situation where the business structure makes a big difference though. If you can run the gite as supplementary income and not need to pay cotisations on the income you are at an advantage over running it as your main source of income and paying cotisations on every euro you earn. I have never thought about running a gite so I may be confused but I think I have understood that non professional tourist rentals is one of the few income streams you can have in France that does not make you directly liable for cotisations, is that right? And then I suppose that if your visa depends on this source of income, you could not call it supplementary.
If you have a fulltime consultancy income of sufficient size then I’d come now if you’ve decided this is what you truly want and do the first 5 years as a frontalier. If you have the strength for international commuting.
The backup business can be developed over the 5 years, slowly, perhaps even just renting at first whilst scouting properties and sorting them, with one of you earning the base income as a frontalier. That way you’re not trying to go from zero to a fully supporting business remotely which frankly, would eat into a lot of the first 5 years anyway
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Yes and sort of no. When we first arrived we didn’t pay cotisations on the non-professional gîte income, but since we were otherwise inactive we had to pay cotisations on our overall income above a certain amount - which of course included the gîte income. Health has to be paid for somehow.
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Absolutely I was not suggesting it was a way of not paying cotisations. I understand that if the gite income is a supplementary income then by definition you have other income be it investments or other work and you will pay cotisations on that. I was just thinking about the question as to how much of the turnover is profit and pondering that the answer would be different for two identical businesses with identical turnover and identical overheads, depending on if it was the main income or not.
Unleas you are exempt by virtue of having an S1 you pay for health cover one way or another! Even tho’ our gîte income was supplementary because it was included in our overall income we paid. But very good value! Happy to pay for the French health service.
Oh yes I know all about paying for health cover, we do not have S1s, but ithat is not my point. What was in my mind, which you can probably confirm or say no, is simply this:
In your circumstances your gite business is well worthwhile in terms of the effort and investment you put in versus the profit you are left with.
For a person in different circumstances, the same gite business might be only borderline worthwhile. Due to the way it is set up and the way it is reported and how it fits with other household income they could be left with less for the same effort and investment.
In other words you cannot look at a gite and say, In order to generate X profit you will have to turnover Y. Because it depends on other things.
Absolutely, which is why it is so weird that the immigration service has set this rather arbitrary feeling sum of €23k gross. I guess they are calculating this is the minimum needed to net the minimum wage of €16k - but some people who don’t manage their business well could end up with a lot less!
Is that Barbara Woodhouse, the former bane of many an innocent puppy?
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Some may find this info helpful
Yes Hello Cat
I am having fun in Libourne hospital just now…
There is not a lot profit in guest.But it is better than nothing.
But I Have taken over 30000 euros at times.
What do you expect