Dream Properties Dordogne

If you have clients who want to open a B&B in France this is what they need to do:

Individual B&B’s

If they want to own their own business i.e. not be listed with Chambres d'Hotes et Gites de France they just need to keep a record of their outgoings and incomings and make an income tax declaration at the end of each year.  They will also need to notify the marie and the notaire.

Tax and other regulations continue to change according to the number of letting rooms and the department you are in.   Generally up to 5 letting rooms are still viewed as ‘farmer’s wife’s perks’ and you do not have to register as a business.

Gites de France

In order to register a property to get “Gites-de-France” accreditation you must have been residing in France for a mimimum of two years.

The process of accrediting a property is quite simple – there are minimum standards which must be reached which are outlined in a charter.   Different standards apply depending on what type of Gites you wish to become – eg. Bed and Breakfast, Rural Gites, Snow Gites,fs Camp sites, Gites for Fishermen or Horse lovers for example.

There is a charter for the standard of service offered as well as the standard of the property. For example, there should be a bottle of wine or a token of local produce for guests on arrival.

The property will be inspected by the association. If the property does not meet the standards set then a time period  is given in which to get the property corrected. If there are major works to be done there are financial facilities available in order to borrow the money to do the place up. This comes as a subsidy once the work is completed. The amount would need to be agreed with Gites de France before you go ahead with the works. They can discuss all the works with you. You then keep the receipts and once the property is up to the necessary standards you receive the subsidy in a single payment of up to 12,000 euros. (Half of this comes from the EU). You are however tied in for a period of 3- 10 years depending on the amount of the subsidy. This means that your business must be open and marketed through Gites de France for this period – if you sell the property you must sell it with an agreement that the new owner keeps the business open for the remaining period of the contract.

Once the property has been accredited there is an entry and an annual subscription fee to carry their logo. The entry fee is approx 80- 100 Euro. Annual subscription rates vary across all the departments of France. Annual subscription is approx. 100 euro. If you own more than one Gites then some departments charge a one off fee and then a smaller charge for each additional property.

If you wish to use their marketing to let the property then commission is paid on top of this. Their commission rates vary depending on the department and the service is annual and renewable. Average prices came in at around 15% per booking. They then take care of the reservations, contracts and the billing.  This service opens up the market. It makes the reservations easy for the client also.

Tax implications vary if the owner registers the Gite as an individual or as a company.  VAT is not payable on the location but you must charge VAT if you sell food and drink etc.  Local taxes are also applicable.

Insurance must be obtained and there are different levels depending on the type of Gites you wish to run. The insurance company must be of the business activity. All of the specific regulations with regard to safety and security of guests must therefore be met.