Short-term furnished rental activity in France

After purchasing a rental property in Courchevel it can be daunting to know what you need to do to ensure you are compliant with local regulations from a financial perspective. Our core business is to help owners generate rental income from their properties. We therefore work alongside the best (English speaking) accountants in the area to ensure our owners are looked after.
 
The rules related to furnished rental activities changed back in 2018 after the Macron government modified the French Finance and Social Security Law. 
 
Below is a summary of the key points that property owners need to be aware of. Click on any of the links for more detail on that topic. 
 
  • For any kind of furnished rental, you are obliged to declare your business to the local authorities 
  • You may register the business in your personal name or as a company structure of some kind 
  • You may choose to provide self-catered accommodation or fully catered accommodation; the latter is classed as "hotel-type services" for which there are various conditions
  • Depending on the level of turnover you hope to earn, ownership details and a few other criteria, you can choose either the simplified "MICRO" regime or the profit and loss "REEL" regime
  • Landlords are required to collect and pay Taxe de Sejour
  • Rental income is subject to income tax and social charges
  • According to the turnover level and your personal situation with regards to VAT paid on the property, you may choose to or be obliged to be registered for VAT (although furnished rental without hotel-type services is not generally subject to VAT) 
  • If you are buying a property "off-plan" or one that has recently been fully refurbished as new, there may be the possibility of a VAT rebate (please note there are many conditions to this, see separate information sheet) 
  • Since the change in law, more furnished rental landlords will now be obliged to register as the equivalent of a "professional" landlord with regards to welfare and pay social security contributions
As stated above we are not accountants so please contact us if you require any further information and we can connect you with our network.

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