GUEST ROOM

GUEST ROOM

Renting out bed and breakfasts is a professional activity of a commercial nature (direct and continuous involvement). It therefore implies certain obligations.


     1) Reception conditions

The guest room(s) must be located in the inhabitant's house or apartment.

The rental of a bed and breakfasts  includes the provision of one night's accommodation and breakfast.

Reception is provided by the owner. No more than 5 rooms may be rented per dwelling, and no more than 15 people may be accommodated at any one time.

Each guest room has access (directly or indirectly) to a shower room and WC.

It must comply with health, safety and hygiene regulations.

At the very least, linen is provided.

From a regulatory point of view, the minimum surface area of each room must be 9m² (excluding sanitary facilities) with a ceiling height of 2m20.

Rooms and washrooms must be cleaned daily at no extra charge.

The operator is subject to certain obligations in terms of price display and invoicing.


     2) Declaration to the town hall  

The rental of bed and breakfast accommodation must be declared in advance to the town hall, on pain of a fine (Form 13566*02).


The declaration must specify :

  • Resident identity,
  • Identification of the owner's address,
  • The number of rooms available for rent,
  • Maximum number of guests,
  • Planned rental periods.

 

     3) Registration with :

  • Center for Business Formalities (CFE)     

When the bed and breakfast business is run on an ancillary basis (as a complement to another professional activity), the owner is exempt from registering with the Commercial Register, but is required to complete a declaration form with the CFE.

  • From the Registre du Commerce (RDC) to the CFE

When the bed & breakfast activity is carried out on a regular basis, it constitutes a commercial activity, and the owner is required to register with the RCS and the CFE of the Chamber of Commerce, even when the activity is carried out under the simplified micro social regime (or micro-entrepreneur regime).


Please note that these formalities are compulsory, regardless of the income generated by the activity, failing which you will be prosecuted for undeclared work.

When the activity is carried out by a farmer on his or her own farm, it is considered to be complementary to the farming activity, and hirers are required to register with the CFE of the Chamber of Agriculture.


     4) Membership of RSI


Bed and breakfast operators must be affiliated to the social security scheme for non-salaried workers (TNS) for health, maternity, old-age, disability and death insurance:

Régime social des indépendants (RSI) or Mutualité sociale agricole (MSA) for farmers.

Membership of the RSI is compulsory when the taxable income generated by the bed and breakfast activity (including the table d'hôtes activity) exceeds €5,165.

If income is lower, there is no obligation to register. The income generated by the rental is then subject to social security contributions on income from assets at the overall rate of 17.2%.


What are the tax implications ? 

Renting out bed and breakfast accommodation, whether on an annual or seasonal basis, constitutes a professional activity of a commercial or agricultural nature. Here's a detailed look at the different tax regimes that apply.


Income tax :    

If the activity is carried out on an ancillary basis:

Income must be declared for income tax purposes under one of the following schemes :

  • Micro-BIC : If sales do not exceed €170,000 (excluding tax): profit is calculated after a flat-rate allowance of 71%, with taxable income corresponding to 29% of sales.
  • Non-professional furnished rental scheme (real profit scheme).
  • Agricultural profits for farmers.


If the activity is carried out on a regular basis :

If you run a bed & breakfast business on a regular basis, and therefore register it with the RCS, you will be taxed as a parahotel rather than as a furnished rental.

Income must be declared for income tax purposes under one of the following systems :

  • "Microentreprise" (for autoentrepreneurs), if sales do not exceed €170,000 excluding tax: profit is calculated after a flat-rate allowance of 71%, with taxable income corresponding to 29% of sales.
  • "Bénéfices industriels et commerciaux" (BIC) (industrial and commercial profits), profits earned by individuals in a commercial profession.
  • Agricultural profits, for farmers.


Value-added tax (VAT) :    

If television sets are present in the rooms, the operator is liable for the contribution à l'audiovisuel public (ex-redevance audiovisuelle), calculated by the professional according to the number of receivers owned.


Tourist tax on tourist accommodation :

If the bed and breakfast is located in a tourist commune where the tax is levied, the operator is liable for the tax.


Council tax:

Council tax applies to rented premises, as they form part of the landlord's personal dwelling. As the use and destination of the premises remain residential, there is no change.


"Center for Business Formalities" (CFE):

Exemption from CFE (unless the commune decides otherwise).


Cases of exemption :

Article 35 bis of the French General Tax Code exempts bed and breakfast rentals from income tax under certain conditions.

Income from rentals and ancillary services (breakfast, WIFI, etc.) of less than €760 is exempt.