Tax issues with use of house by friends and family?

Bonsoir,

I‘m a recent addition to the crowd here (see Introductions section); nothing new to report BTW, we‘re still waiting for the Dream House ™ to be vacated and viewed. Meanwhile, a friend told us about friends of theirs - or maybe it was friends of friends? - who apparently got into hot water with the French tax authorities because they had allowed family members to use their maison sécondaire while they were not there. This reportedly turned into a bit of a tradition and they allegedly received a demand for tax payment from the authorities at some point.

I‘m given to filing this away under the urban (here, rural) myth category but wonder if any of you more experienced people think this may indeed have happened. Should this project go ahead we were rather thinking it would be nice if close friends and family could use our house occasionally - obviously NOT for actual rent. There is absolutely no intention to let commercially.

I would imagine that should anyone (neighbours? unsuccessful bidders on the house?) decide to rain on one‘s parade, there would be a burden of proof upon them/the authorities to show that the property was indeed being commercially let?

Thanks for any pointers!

You are entirely allowed to let friends and family use your house from time to time. France may be draconian with some things but there’s a limit!

I think the bit of the tale that might have substance is “this turned into a bit of a tradition”. As having use of a property regularly could, for example, impact on various exemptions that the actual owners claimed in their own taxes. There are all sorts of twists and turns in French tax law, so it is possible that this counter-acted some other aspect of their fiscal situation.

In France this can also impact on inheritance. And the family members who had use of it might find their share of the inheritance reduced.

But I really wouldn’t fret about it!

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Sorry, @JaneJones, I’m late in thanking you for your kind and substantive answer. I never thought about the inheritance aspect of it. But yes, I won’t fret about it, that’s good advice.