Owning & Running Holiday Accommodation

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Owning & Running Holiday Accommodation

While no official business registration may be required when opening a bed and breakfast (chambre d'hôte) or self-catering accommodation (gîte) in France, the owner is still bound by certain legal and tax obligations.

Obligations of the Owner

The obligations for the owner of a chambre d'hôte or gîte are to:

• make a declaration of registration at the Mairie of the town or village in order to obtain permission to open (if done by mail this should be send by recorded delivery)
• declare to French tax authorities any income generated from renting out holiday accommodation (irrespective of their country of residence)
• ensure that the balconies, terraces, stairways, electrical installations and swimming pools meet legal requirements
• obtain the appropriate licence for a Chambre d'Hôte to serve meals
• ensure that the property is fully insured, appropriate to the type of activity
• For further information concerning insurance contact the Centre de documentation et d'information de l'assurance (CDIA): Click here (in French)

The chambre d'hôte and gîte are exempt from registration as a business providing that all the following apply:

• there are not more than five bedrooms, for no more than 15 guests and
• the expected annual income from rentals is under €23,000 (September 2007) and
• the income from rentals represents less than 50 percent of total income

Note: If there are more rooms, or a greater number of guests can be accommodated, the owner of the establishment is classed as a "professional of the hotel trade" or "professional innkeeper", or an Etablissement Recevant du Public (ERP) which means that certain laws have to be respected concerning fire risks and access for the disabled.

Business registration

A professional business will need to be registered at the local Chambre de Commerce. A SIRET number will be issued – this is the business's unique registration code.

The main implication of registering a business is that the owner will have to pay social charges on profits. Paying these charges entitles the owner to benefit from the French system and gain access to the French social security, medical cover and ultimately a pension, the amount of which will depend on contributions spent over the life of the business.

Micro tax regime

There is a special tax regime – the Régime micro-BIC (Benefices Industriels or Commerciaux) - specific to small businesses which allows that instead of keeping detailed accounts and proof of expenditure, the business owner can get a fixed deduction for expenses of 68 percent (2006) of gross receipts.

• Further information from the French Government: Click here

Tax exemptions

Property owners are exempt from tax on income of two types of furnished property rental. They are:

• Where the rented space within the owner's home is the tenant's primary residence, and the rent is set at a reasonable rate (2006: €159 per year per square metre of habitable space)
• Where the income and taxes of  the space rented (by day, week or month) does not exceed a fixed rate (2006: €760 per year)

Self-Catering Gîte 

A gîte or gîte rural is a house, cottage or self-contained accommodation available to rent for a few days, a weekend, weekly or a period of several weeks. The changeover day on weekly lets is usually Saturday. 

It has to be independent from the owner's house and must have the following facilities:

• A furnished lounge and dining area
• A kitchen or kitchen area, with a cooker, refrigerator, sink, table and chairs, a cupboard and necessary kitchen utensils
• Indoor toilets 
• A bathroom with basin and shower
• At least one separate bedroom with a bed and furniture
• Some outside space (a garden, terrace or parking area)

Bed linen and towels may be provided, as may a cleaning service. These may also be made available to guests on request, for a supplementary fee.

Guests may provide their own bed linen and towels and must clean the gîte at the end of their stay. 

For further information contact:

• Relais Départemental des Gîtes Ruraux (Fédération des Gîtes de France (FNGF)
  At: 56, rue St Lazare, 75439 Paris Cedex 09
  Tel: 01 49 70 75 85
  Fax: 01 49 70 75 80 
  e-mail
  Website

Panda, the nature gîte

Two hundred and eighty rural gîtes affiliated to the Gîtes de France network display the "Panda" label. Awarded since 1993 in association with the World Wildlife Fund (WWF), it indicates rural holiday accommodation in protected and unspoiled natural surroundings. Owners must provide their guests with binoculars and information on the local nature (flora and fauna). They must also manage their gîtes with consideration to the conservation of the environment.

Chambre d'Hôte (Bed and Breakfast)

A Chambre d'Hôte is a bedroom inside the property owner's home or, occasionally, in a building next to it. The room is rented by the night and includes breakfast.

Qualifying criteria are:

• There may be no more than six guest rooms
• Each bedroom must be at least 12m2 excluding the bathroom
• If the room does not have an adjoining bathroom, there must be a basin in the bedroom and access to a bathroom and toilets on the same floor, for the sole use of the guests
• The bedroom must be cleaned daily by the owner who also supplies bed linen and bath towels

A Chambre d'Hôte with Table d'Hôte classification means that meals may be eaten with the host family, there may be no more clients than the family can lodge and the meal served must be the same for everyone. This is not a "restaurant".

Location Saisonnières (Furnished holiday rentals)

Location saisonnière or meublé de tourisme is a furnished villa, studio or apartment rented out for a day, a week, or a month. The owner of the holiday rental or the agency has to present a document (état des lieux) stating the condition and listing the contents of the property, which must include the following:

• The name and address of the owner or the agency
• A full description of the rental

A written contract has to be drawn up with a description of the property and the price. Failure to comply with these rules can result in a fine.

A meublé de tourisme can receive a rating from one to five stars, according to the level of comfort provided. To qualify for a rating, a form must be filled in at the local Mairie (Town Hall). The rating procedure is carried out by the Regional Tourism Committee (Comité départemental de Tourisme) or a similar organisation. A re-assessment of the property is carried out every five years.

• For further information contact the local Tourist Office
• or the Fédération Nationale des Agents Immobiliers (FNAIM)
  At: 129, rue du Faubourg St Honoré, 75008 Paris
  Tel: 01 44 20 77 00 
  Website

The Gîtes de France Organisation

Gîtes de France was created in 1955 to enable town dwellers to go on holiday to other towns and rural areas and small farmers to supplement their income by renting out buildings on their property. The Fédération Nationale des Gîtes de France is a non-profit organisation, sponsored by the government and providing a liaison service between owners and renters.

Before a rental property may display the official Gîte de France emblem, it must satisfy certain standards established by the Fédération which rates the gîtes by ears of corns (épis) from one to five. All Gîtes de France accommodation is inspected regularly by local Gîtes de France representatives. Each address is given an ear-of-corn classification according to its setting, amenities, comfort and services. The rating is reviewed at least once every five years. The accommodation is inspected in the event of a complaint.

A gîte owner who wants their property to be listed in a specialist guide book, needs to register with an association such as Gîtes de France (this is a paying service which can entitle its members to benefit from some financial help), Clevacances or Fleurs de Soleil

With contribution by Joanna Reintjes, Account Revision Chartered Accountants, Registered Auditors
Centre d'Affairs du Château de Launay-Quéro
BP 66217, 35162 Montfort-sur-Meu CEDEX
Tel: 02 99 09 12 08