The taxation of gîtes is a complex but essential subject for anyone considering renting out this type of tourist accommodation. From the outset, it is important to stress that the tax management of a gîte can have a significant impact on the profitability of the business. This article will guide you through the different tax regimes applicable to gîtes, the tax obligations and the potential benefits, taking into account the new provisions and legislation in force.
In most cases, the income generated by gîtes is taxed as industrial and commercial profits (BIC). This tax system applies to all furnished rental activities, including gîtes and chambres d'hôtes. Renters can opt for different sub-regimes depending on their annual income. It is important to note that rental income from gîtes must be declared correctly.
The micro-enterprise scheme, also known as micro-BIC, is often chosen by small gîte operators. This scheme offers administrative simplification and a flat-rate deduction on annual revenue. The turnover thresholds for this scheme are as follows: 
For classified gîtes, a flat-rate allowance of 71% applies, meaning that only 29% of turnover will be taxable. For other rentals, the allowance is 50%. The turnover ceiling must be respected in order to benefit from this scheme. If this limit is exceeded, you must switch to the actual scheme.
The actual profit system is more complex, but can be advantageous for operators with high costs and expenses. Under this system, all costs and expenses incurred in the business are deducted from annual income. It is compulsory if annual receipts exceed €176,200 for bed and breakfast and classified furnished tourist accommodation, but can also be chosen as an option if deductible costs exceed 71% of receipts. This system also applies if you prefer a more precise and detailed tax accounting calculation, including social security declarations.
The CET replaces business tax and is payable by all individuals and legal entities carrying on a self-employed business. It has two components:
CET is a local tax, the amount of which is set by the municipality in which the gîte is located.
Property tax is a local tax payable by the owner, calculated on the basis of the cadastral valuation of the land and premises. Council tax is payable by anyone who has the use of a second home, although main homes are often exempt under certain conditions. This tax can affect the profitability of your rental business.
Tourist tax is optional and depends on the number of visitors to the accommodation. It is intended to finance efforts to promote tourism or protect natural areas. The amount and method of calculation of this tax are set by the municipal council or local decision-making body. This tax is generally included in the nightly rate paid by tourists.
LMNP status is available to individuals who rent out one or more gîtes without making it their main activity. Under this status, income is taxed in the BIC category, with a deduction of 50% or 71% if the gîte is classified. Renters can also opt for the actual tax regime, which can be advantageous in the event of major works or high start-up costs. LMNP also allows the property to be depreciated, providing an additional tax advantage by reducing the tax base.
To qualify for the status of "Loueur en Meublé Professionnel" (LMP), you need to meet certain conditions:
LMP status allows greater deduction of expenses and better tax optimisation. This status allows you to benefit from basic VAT exemption if your income is below certain thresholds.
It is important to note that tax reforms are regularly envisaged to rebalance taxation between short- and long-term lets. For example, amendments to be debated in 2024 aim to bring the taxation of furnished tourist accommodation into line with that of traditional rentals, which could have an impact on the allowances currently in force.
Depending on the amount of revenue, the rental of a gîte may be subject to VAT. Operators may be liable for VAT if they exceed the threshold set by law. However, it is possible to benefit from a basic VAT exemption if turnover is below a certain ceiling. It is essential to check whether this tax applies to your situation to avoid costly mistakes.
Gîtes located in tourist areas often benefit from the added attraction of high tourist numbers. Geographical location can influence the profitability and target market of gîtes. Gîtes in rural areas can also attract more agricultural tourism, while those in popular locations can justify higher prices.
Welcoming tourists means complying with the standards and codes in force to guarantee a high-quality welcome. The services offered, such as breakfast or other additional services, can be major assets in attracting and retaining customers. Gîtes can also be classified according to specific criteria, which can influence the rate of tax allowance applicable and how customers perceive them.
The taxation of gîtes is a complex area that requires a good understanding of the different tax regimes and associated obligations. By choosing the tax system best suited to your situation, you can maximise the profitability of your gîte rental business. Don't hesitate to consult a professional to help you navigate these sometimes murky waters and anticipate future tax reforms. Tax formalities must be carried out with precision to avoid penalties. Make sure you understand the conditions.
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