As occurs in most other countries, France has in place a star rating system for most forms of tourist accommodation, whether hotels, resorts, camp sites or gîtes, although there is no classification system for chambres d'hôtes.
For tax and legal purposes, a gîte in France is called a meublé de tourisme.
The ratings system is run by the French tourism development agency 'Atout France', who appoint accredited bodies to undertake the assessment, many of whom are local tourism offices.
The charge for the assessment is not regulated and can range from under €100 to several hundred euros.
Following a visit by the assessor, provided you reach certain minimum standards, you will normally be offered a star rating, which you are at liberty to choose or reject. If you accept you then have official rating as a meublé de tourisme classé.
Becoming affiliated to the Gîtes de France does not grant any star rating, although they do have their own standards system. The body is merely a brand, albeit a very successful one, and who in some areas is accredited to award a star classification.
The award of a rating is based on an assessment of a wide range of factors - the size and number of rooms, the condition of the property, the facilities offered, the services available to the customer, accessibility, and sustainable development. There are tolerances that can be applied, as well as options in the way a service can be provided.
New Classification System
Hitherto, there have been 112 control points for gîtes, but with effect from 1st February, it increases to 133.
In the changes this year, some previous criteria have been removed and others have been added or existing criteria divided. The new system gives far stronger importance to sustainable development and digital services than previously.
New or reformed criteria (obligatory or optional depending on the star rating) include internet access with cable, connected speaker, double glazing, domestic appliances, garden furniture, high density mattress, pets admitted, electric charging point for a vehicle, as well as several other features related to sustainable development.
Condition and cleanliness will no longer be assessed on a scale and will no longer be averaged as previously.
The criteria used do not mean that to obtain classification you need to have all these features and services; they merely determine the star rating you obtain.
The new scoring system applies to all assessments that take place from 1st February 2022. The classification of existing establishments will remain valid until their expiry, which is 5 years from the award of the rating (subject to no change in ownership). On expiry, the rating assessment will be based on the new system.
All of the documentation associated with the new classification system can be found at Le classement des meublés de tourisme.
You can find the list assessors at Liste des organismes de contrôle agréés pour le classement des meublés de tourisme.
Tax Implications
From a fiscal perspective obtaining a classification has significant tax advantages for those who use the micro-entreprise system of taxation.
As a meublé de tourisme classé you are granted a cost allowance of 71% against revenues for both income tax and social charges, rather than the default rate of 50%.
Unless there is an express decision to the contrary by the local council, a classed meublé de tourisme that is part of your main or secondary home is also granted exemption from the local business rates, called the Cotisation Foncière des Entreprises (CFE). However, it is not always necessary to obtain a star rating to obtain relief from the CFE, as if your turnover is under €5,000 pa there is a general exemption, which some councils also grant to all gîte owners, irrespective of any star rating.
If you become business registered, and run it as a micro-entrepreneur, the social security contribution rate you will pay on your turnover is 6%, as against the standard rate of 22%. You can read more about this status at Business Registration as a Landlord.
Whichever approach you adopt, in both cases the fiscal relief is substantial.
These rates apply whatever the level of your rating, so getting a classification and obtaining the tax break does not necessarily mean you need to invest a substantial sum in the property or services. Whether you would wish to promote your gite with only 1 or 2 stars is of course another issue.
That said, it is not always advantageous to adopt the micro tax system, as it does not allow you to deduct your actual costs, including loan interest. Neither does it grant an allowance for depreciation, which can significantly reduce your tax liability, often to zero. However, the use of profit and loss accounting does require professional support. You can read more about it in our guide below.
As well as the increased cost allowance for micro businesses, a classified meublé de tourisme also benefits from a fixed rate tariff for the tourist tax, the taxe de séjour, instead of a percentage rate of the rental charge for those that are not classified. The tax is paid by the guest(s).
The rules of how it operates are determined locally and many local councils do not impose the tax. It is more common in ski resorts, city centres and coastal areas.
A proper explanation of the tax would require separate consideration, but the percentage rates vary between 1% and 5%, whilst the fixed rate ranges from €0.20 to €3 (per person per night), depending on the classification and the policy of the local council.
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