Is it necessary to Create a Company to open Gîtes? French Resettlement FAQ
There are so many questions and hurdles to overcome before and after moving to France. John Dislins offers advice to potential gite owners and explains health insurance ‘top-ups’
Do you have to create a company to open gites?
We plan to open two gites after recently completing a barn conversion. Should you start a business first and what are the first big steps to get there?
If you intend to operate your gîte commercially, i.e. a) if your turnover is likely to exceed €23,000 and/or b) if you intend to rent equipment or sell property, in addition to the rental income from your gite, then you need to set up a business entity.
The type of entity is determined by your annual income. Depending on the location and capacity of your two properties, your business could generate around €35,000 per year. In this case, you might consider registering your business as a micro business. This gives you self-employed/sole entrepreneur status and is a good starting point, as there are no VAT or formal annual accounting requirements, only monthly or quarterly filings.
The type of documents required to register a micro business include copies of:
- Identity documents (passport)
- Residence (Residence permit)
- A proof of address, such as a utility bill
- Form P0 Micro CMB (Cerfa 15253*04) completed, which must include your French national insurance number
- A legal statement certifying that the copy of your ID is a true representation of the original
If your spouse or partner (PACSed) is intended to participate (Joint collaborator) in the company, they will also have to provide:
- French residence
- Proof of address
- Marriage certificate/PACS (if the partner is your spouse)
Your future business partner must also prove that they are not employed elsewhere, nor a shareholder (Associated) from another company. They also cannot be paid by your company. If your spouse is not an intended partner, you must declare that you have informed him of your business proposal.
Please note that to set up a micro business, the government requires you to have an estimated turnover of €23,000 and above. If it is likely to be lower, you can create an additional business element, such as a bicycle rental service, for example. Some have even gone so far as to have a small shop to sell milk or bread to cash in around €23,000 as a rule.
Is complementary health insurance compulsory in France?
What is the origin of complementary health insurance? Is it required by law for all residents in France and how much does it cost per month?
Complementary health insurance, known as Complementary Health (Mutual), is literally an addition or upgrade to the basic French health system (Health Insurance). It is not mandatory. However, this cover is strongly recommended because it offers a greater choice of medical treatments. Rather than having to wait to be seen in a public hospital, you can go to a private “clinic” at an affordable price. Supplementary insurance costs around €30 per month.
What documents do we need to apply for French residency after Brexit?
What advice is available when applying for post-Brexit French residency? And what are the main documents we will need?
Applying for French residence since Brexit has become more difficult. The French government suggests that if you plan to run a business, such as a gite, you should apply for a work visa. Be aware that each type of visa has its own application documents and set of qualification criteria, so it is recommended that you seek specialist advice regarding your particular situation.