We have received several enquiries in recent months from UK nationals seeking information on the visa requirement for those proposing to relocate to France and run a gîte or chambre d'hôte activity.
The business status of landlords of furnished accommodation is one that is mired in controversy and complexity, as the French authorities have never really been able to make up their mind as to whether it is a commercial activity or merely the management of personal wealth.
In recent years, the lines of demarcation have been made clearer, with the law now stating that those with a turnover of at least €23K a year from the activity are considered to be a 'professional landlord' (Location meublée professionnel - LMP) and must register the activity as a business.
So far so good, if you run a chambre d'hôte as an 'habitual' activity you are required to register the it as a business, irrespective of your turnover.
In addition, many thousands of gîte owners have been able to register the activity as a micro-entrepreneur business, despite not meeting the turnover requirement, although this would not give them the status of 'professional landlord'. Instead, the activity is considered to be Location meublée non-professionnel -(LMNP).
Strictly speaking, unless you also offer a range of basic services with the gîte, you are not entitled to register it as a business, although it is not too difficult to overcome that obstacle.
Accordingly, the question arises as to whether the activity can be carried out on a standard 'Visiteur' visa.
We have made enquiries about this point to the consulate in London, and they have now advised us that running a gîte in France is not compatible with this type of visa, stating that: "running a meublé de tourisme , a gîte, a chambre d'hote, a bed and breakfast...is considered as a professional activity and cannot be done under a Visitor visa if it brings income, even if small."
Given what has been stated above about the non-professional status of small landlords, that may seem a surprising position for them to take.
However, Pierre Lebriquir an avocat specialising in immigration law told us that under the terms of a Visiteur visa it is not possible to work or earn money in France.
He considers that the problem is one of confusing two different meaning of the word 'professionel' stating: "the term 'location de meublé non professionnel' is a tax law concept, and it does not really mean that you are not a professional in immigration law, under which, as soon as you earn money with a gite or a chambre d'hôte, you are considered a professional."
He confirms that: "The visitor visa does not allow any professional activity, which means you do not have the right to work and earn money in France."
Although, therefore, it is possible to run a gite in France without the need to register it as a business, it is still necessary to register as a landlord of furnished accommodation, for which purpose an administrative business registration number is granted! This does not, however, mean that you would have registered business status - it is merely an administrative registration.
Maitre Lebriquir cautions against anyone considering running a gite business illegally on a visitor visa. "The risk is that, if the prefecture see the activity, it will not renew the visa, although it is more probable they will require you to submit the correct visa application."
Those proposing to run a gîte would need to apply for an 'entrepreneur' visa or, if it was an important project, a 'passeport talent création d'entreprise' visa. The cost is €225.
That will require submission of a business plan, which shows that the project is 'economically viable and from which s/he derives a sufficient means of existence'.
Contrary to popular belief, there is no requirement that the activity needs to turnover a minimum of €23,000, contrary to many reports we have seen on social media. You merely need to demonstrate that your total income meets the minimum income test for a visa.
The authorities do also take into consideration that a new business will take time to grow and that it may not be able to achieve the minimum wage from the outset. In addition, provided you have other income, a lower figure will be accepted, provided you meet the minimum income test.
Unless you are purchasing an existing gîte business, and you are able to obtain the financial results of that business, that is going to be a difficult task.
One alternative is to apply for a standard ‘visiteur’ visa in the first instance, and when you are in France and clearer about the business and its prospects, to make application to change it for a business visa in a process called 'changement de statut'. You can do so approximately two/three months before the expiration of your existing visa. If you are not going to be running the gite busieness in the first year, that is by far the best approach.
An application submitted as a resident in France is considered by the local prefecture who make the decision, but once again you will still need to submit a business plan.
You will aiso be obliged to undertake a basic language and civics course, called a 'Contrat d'Integration Republican', requiring around 100 hours of lessons. You will be offered French lessons. The course is a requirement for those seeking permanent residence and to run a business, although those aged 65+ are exempt from the language test.
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