Touristique   

Running a gîte as a business

Published at August 14, 2024 by Amandine Disdero
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Running a gîte as a business

Open a gîte is an attractive proposition for those wishing to set up in business as a tourist accommodation and set up a business in this area as an operator. There are many advantages to this option, but it requires careful preparation and an in-depth knowledge of the legal, financial and regulatory aspects. In this article, we'll explore the different facets of running a gîte as a company, so that you can make the best choices for your future project.   

Contents
1. What is a gîte and why choose the corporate form?
2. The different legal forms for running a gîte
     2.1. EURL and SASU for sole traders
     2.2. SARLs and SASs for multi-stakeholder projects
3. Rules and formalities for running a gîte as a company
     3.1. Declaration and registration
     3.2. Specific standards and regulations
     3.3. Classification and labelling
4. Financial and tax aspects of running a gîte as a company
     4.1. Tax system
     4.2. Social security charges
     4.3. TVA 
5. Practical advice on how to run your gîte successfully as a company
6. Summary of the key points for running a gîte as a company
7. Conclusion

What is a gîte and why choose the corporate form?

A gîte, also known as furnished tourist accommodation, is a self-contained, individual dwelling available to holidaymakers for stays ranging from one day to one month. Unlike bed and breakfast establishments, gîte owners are not obliged to serve breakfast, but must provide full and sufficient facilities for guests to cook, relax and rest. Non-professional furnished-rental status may also apply if the income from the rental remains below a certain threshold.

There are several advantages to running a gîte as a company:Grande maison

  1. Protection of personal assets
  2. Possibility of joining forces with others
  3. Increased credibility with partners and customers
  4. Potential tax optimisation

The different legal forms for running a gîte

EURL and SASU for sole traders

If you want to go it alone, there are two legal forms available to you:

  1. EURL (Entreprise Unipersonnelle à Responsabilité Limitée)
  2. SASU (Société par Actions Simplifiée Unipersonnelle)

These two structures allow you to protect your personal assets while benefiting from simplified management. They also offer the option of choosing between income tax or corporation tax for the taxation of profits, which may influence your tax strategy.

SARLs and SASs for multi-stakeholder projects

If you are thinking of forming a partnership, you can opt for :

  1. SARL (Société à Responsabilité Limitée)
  2. SAS (Société par Actions Simplifiée)

These legal forms are suited to projects involving several people and offer great flexibility in the organisation of the business. They also make it possible to divide the capital contributions between the partners and to define the roles and responsibilities of each, particularly with regard to the management of the lease and the distribution of profits. One of the partners may be given the status of manager, which entails specific obligations in terms of managing and representing the company.

Rules and formalities for running a gîte as a company

Declaration and registration

If you want to run a gîte as a company, you need to set up a business. This formality is free and can be completed online at the business formalities office. You will also need to register your company with the Registre du Commerce et des Sociétés (RCS) and the Registre National des Entreprises (RNE). What's more, it's important to draw up clear and precise Articles of Association, so that you can clearly define the legal framework of your business and comply with legal obligations.

Specific standards and regulations

As a gîte operator, you must comply with certain standards and regulations:Maisons de vacances

  1. Register your tourism activity with the town hall
  2. Comply with safety and accessibility standards (particularly if you can accommodate more than 15 people)
  3. Display prices for overnight stays
  4. Install smoke detectors

Classification and labelling

Although optional, classifying your gîte as a furnished tourist accommodation can be an asset. It allows you to obtain a classification ranging from 1 to 5 stars, a guarantee of quality for your customers.

You could also consider obtaining a label such as Gîtes de France or Clévacances. These labels offer greater visibility and can reassure your potential customers. What's more, a classification or label can improve the profitability of your rental property by justifying higher rates.

Financial and tax aspects of running a gîte as a company

Tax system

Your choice of legal form will have an impact on your tax regime. In general, companies are subject to corporation tax (impôt sur les sociétés - IS), but it is possible to opt for income tax (impôt sur le revenu - IR) in certain cases. The tax system also influences the social security charges to which you will be subject as a company director. A prior estimate of these charges is necessary to guarantee the profitability of your project. In some cases, adopting the auto-entrepreneur or micro-tax regime may be an option to simplify management. You should also be aware of the various taxes that apply, such as tourist tax.

Social security charges

As a company director, you will be affiliated to the general Social Security scheme. The conditions for affiliation vary according to your income and the status you have chosen. Good management of social security contributions is essential to avoid unpleasant surprises and ensure the financial sustainability of your company. You will also need to ensure that you comply with URSSAF obligations, particularly in terms of social protection and pensions.

TVA

If your turnover exceeds certain thresholds, you will be liable for VAT. However, some schemes, such as the auto-entrepreneur scheme, allow you to benefit from a VAT exemption. It is crucial to be aware of these thresholds and to manage VAT properly to avoid tax penalties. You will also need to take into account the costs involved in managing VAT and the periodic reporting obligations.

Practical advice on how to run your gîte successfully as a company

  1. Choose the location of your gîte carefully, taking into account the tourist appeal of the region.Maison de vacances
  2. Invest in the quality of your accommodation and facilities to ensure that your customers are satisfied.
  3. Get training in the legal, tax and commercial aspects of the business, even if it's not compulsory.
  4. Appropriate training can be beneficial.
  5. Develop an effective marketing strategy to promote your gîte.
  6. Consider obtaining a label to increase your visibility and credibility.
  7. Listen to your customers and adapt to their needs.

It's also a good idea to think about the impact of any refurbishment work required before you open, as well as the day-to-day running of your business, particularly in terms of cleaning, welcoming tenants and maintaining the accommodation. Don't forget that renting a gîte also involves managing the insurance aspects and any loans or finance required for renovations or the purchase of the property.

Summary of the key points for running a gîte as a company

  • Choosing the right legal form (EURL, SASU, SARL, SAS)
  • Registering and declaring your business
  • Complying with specific standards and regulations
  • Considering classification and labelling of your gîte
  • Managing the tax and social aspects
  • Investing in the quality of your accommodation and service
  • Developing an effective marketing strategy

Conclusion

Running a gîte as a business is an exciting venture that requires careful preparation. By choosing the right legal form for your project, complying with the regulations in force and adopting a professional approach, you are putting all the chances of success on your side. Don't forget that the quality of your welcome and service remains paramount in this business sector. With perseverance and a good sense of hospitality, your company house can become a flourishing and fulfilling business. The key to success lies in rigorous management, in-depth knowledge of your market and constant adaptation to tourists' expectations. It's also a good idea to understand your rights and obligations as an owner and landlord, to avoid mistakes and maximise the profitability of your business. A practical guide can also be a valuable resource for navigating this rapidly expanding sector. That way, you can successfully complete your project and deal with any questions that arise along the way.

Find out more :

1. How do I sell a gîte?
2. Where to buy a gîte
3. How much does a night in a gîte cost?
4. How profitable is a gîte?
5. Buying a gîte or creating a gîte: which should you choose?
6. What are the formalities for opening a gîte?
7. The different types of gîtes
8. Taxation of gîtes
9. Gîte labels: a guarantee of quality for your rural accommodation
10. Gîte classification
11. How to communicate effectively for a gîte 
12. How to choose the best platform for your gîte
13. What criteria should I take into account when buying a gîte?
14. Furnishing and decorating a gîte
15. What is the ideal number of bedrooms for a gîte?
16. The advantages of a large plot for your gîte
17. What are the essential features of a self-catering cottage?
18. Should a swimming pool be installed for a gîte?
19. What price should I pay for a gîte?