Tax changes for gîte owners now in force

246-460Are you a gîte owner in rural France? If so then you need to be aware of the changes to the tax regime introduced during 2016. The definition of what is considered a “rural gîte” has been unclear in legal terms and the changes introduced under the new General Tax Code attempt to remove any perceived tax advantages. The changes will also effectively encourage owners to register as a meublé de tourisme classé or become a micro-entrepreneur.

Until this year, rural holiday gîte owners have been taxed under a system called the ‘micro’ (or ‘forfait’) which provided for significant tax exemptions and benefits: for example, a cost allowance of 71% against rental income meaning that tax is liable on only 29% of income; and secondly exemption in rural development areas from the Cotisation Foncière des Entreprises (CFE). Under the new General Tax Code changes, these preferential tax advantages will no longer apply with the cost allowance reduced from 71% to 50%.

To continue to receive the 71% cost allowance it will be necessary to apply for classification under the meublé de tourisme. There are a range of government approved organisations which are authorised to issue a star rating, which will require payment of an application fee, responding to questions about the property and facilities available and finally making the gîte available for inspection. Gîte owners receive a star rating which they can decide whether to use or not: and it will allow you to retain the tax advantages (71%) previously available.

There are however alternatives. Individuals owning gîtes could become classified as a micro-entrepreneur (previously known as auto-entrepreneurs) or can decide to be taxed on the basis of your actual net profits which is called the régime réel. If you would like to explore either of these alternatives please contact us and we shall be pleased to advise you.

The above is a summary of the principal changes but if you would like to know how the tax changes affect you as a gîte owner then please give the team at Fiscaly a call on +33 (0)9 81 09 00 15. You may also wish to visit our website . Let Fiscaly help you to take away the headache of tax and administration.

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French residents to benefit from tax reductions next year – it could be you

Millions of people living in France stand to benefit from recently announced tax reductions in 2017 and with a Presidential Election just around the corner next spring, the aim is to help single person households, couples and families with children. See below to determine whether you could benefit.

Income tax reduction of 20% for 5 million households

Around 5 million households could benefit from a 20% tax reduction, estimated to be worth 200€ on average and based on 2016 incomes. The income earned limit is 18,500€ for a single person or a widow – that’s around 1,700€ a month. For couples, the ceiling is 37,000€. However it is possible that some people earning slightly more than these limits could receive a partial tax reduction.

Introduction of tax deduction at source in 2018

From 2018 the Government will be changing the way it collects tax by deducting at source with employers sending the tax deductible direct to the state as opposed to completing an annual tax return each autumn. Those households who do not pay tax and earn less than 25,000€ will not be affected by this change.

Increase in the TV license fee in 2017

Watching TV in France will be more expensive next year… but only by 2€. The changes have been introduced to raise money for public sector broadcasting and will increase to 139€.

Extension of the Home Care Tax Credit to all Retirees

Finally, good news if you’re retired and need to access home care services. From 1 January 2017 the Government will apply a 50% tax credit in return for the employment of an employee at home. Previously this benefit was available only for those working or unemployed but has now been extended to retired persons, including those who do not pay tax.

Please give the team at Fiscaly a call on +33 (0)9 81 09 00 15 or visit our website if you would like to know more about how we can help take away the headache of tax and administration.

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Brexit & income tax – what is the UK withdrawing from?

The European Union (EU) is governed by two treaties, the Treaty on the EU and Treaty on the functioning of the EU.

If and when the UK invokes Article 50 of the Treaty, which states “Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements”, the benefits and obligations that accrue to the UK and its citizens stemming from these two treaties will cease over time.  In relation to the Treaty on the function of the EU, the UK will cease to participate in the overall government of the EU.

It is the withdrawal from the Treaty on the EU which will impact us as individuals or as persons operating a business from the UK with the rest of the EU.

There has been a lot of talk about what the EU Treaty is … and much confusion too. Its principle objective is to create a level playing field for a free market to operate in Europe.

This can occur if four freedoms are available to citizens of the member states and their businesses.  They are, the freedom of movement of (1) persons, (2) of goods, (3) of services, and (4) of capital.  The impediment of any one of these freedoms would obstruct the proper functioning of the free market, and therefore discriminate against the level playing field principle required for persons and business to prosper in the individual member countries.

In my view, much of the issue with the UK referendum has been concern over the freedom of movement of persons and not so much with the other three freedoms or questions over sovereignty or interference. This has been exacerbated by tragic international events.  However, from a free market perspective, the free flow of goods, services, and capital are dependent to a large extent on the freedom of movement of persons.  Its impediment would restrict the free movement of other three.

British citizens living in France have concerns over how this will play out – and rightly so.  In this article, I wanted to cover the before Brexit situation and its eventual effect on the 4 freedoms.  Having covered this ground, I will attempt in my next article, to provide some foresight as to what the tax situation will be, should France and the UK be obliged to cross the unchartered Brexit waters.

For further information, please see our website , phone us on +33 (0)9 81 09 00 15 or email

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Taking the headache out of tax administration

French Tax returns

Calculating and paying taxes is always difficult – or is certainly not easy – however the French view it as their way of contributing to their national and local government and guaranteeing their way and quality of life.

But even though we’d all prefer to keep our hard-earned money in our pockets, paying tax is what we have to do and for many people submitting a tax return is at best a chore – and for those who are not confident in the French language, can be positively daunting. However, submitting your French tax return need not be a stressful experience and that’s where we come in.

Fiscaly are a bi-lingual firm, speaking both French and English, which means that all correspondence and conversations can be had in English. That’s right: we’ll ask questions in English, provide answers too in English, and help you through the process from start to finish.

This time of year is an important one in the run up to the income tax deadline (French income tax is called La Déclaration des Revenus), which this year is the 19th May. For submission of tax returns online, we are given a few more weeks to complete the paperwork, although the deadlines vary according to the department where you live.

Depending upon your financial situation, there may be various forms to complete but again our professional team is here to help you, and is also more affordable than you may think. We also offer a guaranteed response within 48 hours.

Don’t forget, you will need to declare all of your income and this includes any income you receive from the UK or any other source country, e.g. pensions or from renting a property in the UK. The Double Taxation Treaty between the France and UK means though that you won’t be taxed twice.

Give us a call today on +33 (0)9 81 09 00 15, and let us take the headache out of your tax and administration.

Fiscaly has been providing premium accounting and tax services since 2009, meeting the needs of private clients and businesses across France. Based in the heart of the Dordogne, Fiscaly prides itself on “simplifying the complex”, by removing the headache from French business administration and always understanding the client’s requirements. The experienced professional team at Fiscaly are fully bi-lingual, which means that we will understand you and your financial situation, asking questions in plain English. We offer a guaranteed, first point of contact within 48 hours of receiving your enquiry.

For further information as an individual, please see our website:

For further information as a business, please see our website:

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