1. Start on 2nd January at the earliest to avoid the CFE- Cotisation Foncière des Entreprises, payable by companies in operation on January 1st of each year.
Note that France pretty much shuts down for holidays in August, so it is inadvisable to start your new independent activity then if you want to get moving fast.
2. Join a Centre or Association de Gestion Agrée. Membership allows sole traders to accept professional cheques in their private name, and also avoids the 25% turnover uplift used to calculate income tax.
3. Even if your activity turnover remains beneath the VAT threshold you can apply for a French VAT number and import goods VAT-free up to the value of 10,000€ per annum – be they physical goods or intellectual merchandise, such as online educational courses or international advertising space.
4. Included in the social charges bill, which is due monthly or quarterly, is a fee for ongoing education. In the second year of activity, on condition that positive turnover has been declared in the first year, all are entitled to continue their education – from lessons to improving language skills or specific courses to improve or expand their trade. Up to €1,000 to €2,400 is available to cover the costs, depending on your activity.
If you're starting a business - 4 essential tips:
Top Tips for owners of gites & chamber d’hotes (B&Bs)
France has been a world leader in tourism for years and the market for independent accommodation in popular tourist areas has boomed. Here are some tips specifically for Gite or B&B owners, or anyone considering this as a source of revenue in the future.
1. Gites & meublés de tourisme benefit from advantageous tax conditions. The annual turnover threshold for the simplified tax regime is limited to 81.500€, and 71% of turnover is deducted as costs before tax is calculated.
2. Rental property must be declared to your Mairie using the Cerfa 14004*02 form. This ensures your property is listed by the Mairie and Office de Tourisme and may be passed to potential clients; some Mairies offer local signposts to help guests find you easily.
3. If you want to boast a star rating on your property then you must apply to the accredited network for your category from the list supplied by Atout France here. After an inspection of your rental property, the organisation has 1 month to supply a certificate detailing your score from 1 to 5 stars, and the elements of inspection which determined their decision. You have 15 days to appeal their rating - without response from you the rating is considered accepted. Your star rating is valid for 5 years.
4. When does your rental deposit become part of your turnover for tax purposes? A deposit remains the property of the client until they take up their residency, and therefore a deposit received in 2014 for a stay in 2015 should remain in the account without declaration until the balance of the reservation is paid in full.
Many non-French speakers need help with understanding their options when starting a new professional activity or making sure they have carried out the obligatory procedures for their new rental property. The best advice is to get reputable help if you decide not to go it alone…