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Is it possible to apply for a cap on my French property tax bill?
Some property owners can limit how much they pay if they have exceptionally low income
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Where is official post sent in France whilst we travel in motorhome?
Although mail can be forwarded or collected on your behalf there are challenges
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Is more tax payable if putting a carport in front of French second home?
Taxe foncière payments can increase if additions are made to a property
Gite owners in France urged to take advice on tax changes
New tax rules could leave furnished holiday accommodation owners confused about which accounting system to use
There is good and bad news for people offering gite and other furnished holiday accommodation.
On the plus side, it has been confirmed that recent harsh tax changes will not apply to 2023 income declared this spring.
However, the changes do – at least until further notice – apply to income received from January 1, 2024, to be declared next year.
Chambres d’hôtes and long-term furnished rentals are not affected.
Read more: Respite for gite owners in France as harsh tax change is put off
Changes to expense allowance and income ceiling
The changes concern use of the simplified micro-Bic accounting system and the expenses allowance available, and the income ceiling before owners must use the more complex réel accounting system.
The ‘old’ rules are, for properties not classified with a star-rating, a €77,700 ceiling and a 50% expenses allowance; and for classified properties, €188,700 and 71%.
The new rules state that the ceiling to benefit from the micro-Bic is reduced to €15,000 and the expenses allowance to 30% – or 51% for star-rated rentals in areas that are not deemed subject to housing pressure.
Further changes in the pipeline
Adding to the confusion, French MPs recently voted through a proposed law that could change the rules on furnished holiday rentals yet again, potentially applying to income starting from January 1 this year. It has yet to go to the Senate.
We suggest taking advice if you offer furnished rentals under the micro-Bic system and may go over the ‘new’ ceiling mentioned above.
Related articles
How do I register to offer a furnished gite rental in France?
Many gite owners in France forced into complex and costly tax regime
Ending tax breaks for French gites could ease housing crisis