S1 Entitlement

Banking & Financial Pensions
1

Hi all

I’m new here and finding my way around website so hoping I’m doing this right.

Apologies as this topic has probably already been covered before.

My question is this. I’m going to be eligible to claim the S 1 in a few years. I’m considering moving to France full time. In the meantime I’ve a house in France which I’d like to rent out on an air bnb occasional basis. I’ve read that if you’re a Micro Entrepreneur you may enter into the French social security system and so lose entitlement to getting the S1 which would be very valuable tax wise.

So if I let my house out would I need to become/can I avoid being a ME and will I retain the right to get the S1?

2

There are thresholds for seasonal renting. A complex subject but the thumb nail is that if you rent seasonally as a LMNP (louer meublé non professional) you can declare through your French tax return and don’t pay cotisations as long as your turnover is low. Ie don’t need to be an ME - but do still need to get a Siret number.

The levels are tightening and I think under €15,000 for a classified gîte now - but may have reduced to €8000.

Some communes limit rental like this to 40, 90 or 120 days of prohibit it altogether. This you you will also need to check.

1 Like
3

Hello @Chantal1 . Welcome to the forum.
Where have you read this?

G

4

Hi I’ve read on this website but sorry I can’t remember exactly where now

5

Hi and yes would certainly check all the requirements before renting and I know that you also have to levy tax de sejour so not uncomplicated

6

Taxe de séjour is pretty straightforward so don’t worry about that.

As an afterthought a potential snag is if you plan to rely on rental income to qualify for a visa? In which case yes you have to be an ME and have to earn more and pay cotisations, and yes you will loose your S1.

But if you can qualify just for a visitor visa it doesn’t open that can of worms at all.

7

Ah thank you. I’m an EU national so don’t need to worry about the visa issue thankfully

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8

You can get an S1 from HMRC if still working in the UK but living in France as a frontalier. (Retirement S1’s are issued by the DWP). There needs to be some sort of regular pattern of returning home to France after work in the UK, used to be weekly but there is flexibility depending. You call HMRC and ask for it if that’s your situation.

Your work must be done in UK not France though and generally that would be for a UK employer. A few emails whilst travelling home on train or plane is not going to bother anyone. I did it so had an S1 whilst still working.

I think if you’re resident perhaps with a lodger for example, a way might be found that that’s not a business.

Just mentioning in case your situation in the intervening years could fit that.

9

Thanks Karen I certainly wasn’t aware of that :grinning_face: