Many British people who buy a rural property in France and move there permanently, plan that it will provide them not only with a lovely family home but also with an income, by letting out rooms as chambres d’hôtes, or bed and breakfast.
It may be timely to look at some of the French law relating to such an activity, particularly since some new legislation has come into force within the last year, the object of which is to protect the consumer and to bring the owners of chambres d’hôtes in line with other local providers of accommodation.
The French Code du Tourisme defines chambres d’hôtes as furnished rooms in the owner’s own home available for tourists as paying guests for one or more nights, and offering certain services. The maximum number of rooms is five, and the maximum total number of people who can be accommodated is fifteen. Breakfast must be provided, and the owner/occupiers must themselves receive the guests and be responsible for cleaning and maintaining the rooms. Each room must have separate access to a bath or shower room and a WC, and be equipped with a minimum of bed linen and towels. In accordance with the code de la consommation, the price of the room must be clearly displayed, and an invoice supplied before payment is demanded.
If you extend the services to offering an evening meal, this can only be provided in conjunction with the bed and breakfast – in other words you may not serve meals to people who are not staying with you. There must be a single menu, of quality cooking, preferably using local products, and the meal must be taken with the family. If these conditions are not observed you may be considered to be running a restaurant. Both the accommodation and provision of meals are subject to current health and hygiene regulations.
Evening meal
A licence for the provision of non-alcoholic drinks may be required if the only meal provided is breakfast. If alcoholic drinks are made available with an evening meal, a restaurant licence may be necessary.
Since 4 August 2007, everybody who plans to let out chambres d’hôtes must now first make a declaration to the local mairie on the prescribed form; those who were already doing so before 4 August 2007 had until 31 December 2007 to do this. The declaration must state the identity of the person making the declaration, the address of the property concerned, the number of rooms offered, the maximum number of people to be accommodated and the dates of availability. The mairie should formally acknowledge receipt of the declaration. Any amendments to this information must also be declared to the mairie. A list of all local chambres d’hôtes may be inspected at the mairie.
There may be some local tax advantages associated with chambres d’hôtes. If your property is in a rural regeneration area you may be exempt from taxe foncière and taxe d’habitation.
If the chambres d’hôtes business is your main economic activity, you may be considered to be trading commercially and you may be required to register at the French Companies Registry, but if you also have another source of income this is less likely.
The income you receive will be subject to VAT and income tax. Depending on the level of income you receive, you may have some choice as to the income tax system you submit your income to. This will be affected by your personal circumstances and, as always, you should seek advice from suitably qualified professionals.