French tourist rental income
There seems to have been slipped in quietly some changes to the laws on tourism lettings, whether of Chambres d’Hotes or self-contained lets..
The first of these changes is what the title now actually covers, and the new definitions cover :
chambres d’hotes – only the provisions of rooms, effectively a bedroom, in someone’s property.
furnished tourist lettings – essentially anything more than a chambre d’hotes, such as a holiday suite, apartment or even property
The second change is that the notion of a habitual activity is introduced, and if this is applicable, either on an annual bais or during a tourist season, then the activity is of a commercial nature, and this requires registration with a centre de Formation des Entreprises.
The third is for the business social security charges :
– the lettings of chambres d’hotes are exempted and social charges continue to be levied at 17,20% for French residents
– for furnished tourist lettings, business social charges are due if the annual income is in excess of 23 000€, and this also requires registration of the activity as a business
For income tax, the taxations rules have been simplifies and now are :
chambres d’hotes – allowance of 71% and so only 29% of the income is taxable
furnished tourist lettings – allowance of 50% and so 50% of the income is taxable
For VAT, currently seasonal holiday lettings are exempt from VAT