Saturday, 25 March 2017

Saturday, 25 March 2017

Changes for gîte activities

The Finance Act for 2017 was adopted by the French Parliament on 20 December 2016 and was published in the French Official Journal on 30 December, 2016.

But what many will not have noticed is that the legislation included a provision for social contributions to be paid on furnished lettings – i.e. gîte activity. Previously, social contributions were only payable where furnished rentals were operated as & “professional” activity.

From January 2017, if your annual turnover exceeds 23,000 € you will be liable to the new contributions. This will require owners to register with either RSI or CPAM.

The legislation was changed at the 11th hour, after much lobbying by French hoteliers, principally because of internet platforms such as Airbnb, and therefore exact requirements are still not clear.

But be prepared, the cotisations are coming, and will be due once your income exceeds 23,000 €. It may be worth exploring changing your classification to “meublé de tourisme”, but that cannot be done part way through the fiscal year.

Best advice is to talk to your accountant if this concerns you. If you want to do some homework beforehand visit (in French).

Filed Under: , , ,


Post a Comment