It’s no secret that the legal requirements for letting a holiday property in France are thorough. Those investing in rental properties, or those who are just establishing their rental business in France, might feel overwhelmed by the process, so we’ve put together this article to help.
In this post, we look at requirements such as rental property tax laws, rental property insurance, TV and music licenses, and fire safety regulations.
If it’s your first time reading about this, head over to part 1 in this series where we introduced; how to register your rental property with the local commune, how to declare and pay the local tourist tax and the official classification of rental properties
Read on to find out more about the other legal requirements for letting a holiday property in France in 2021…
The SIRET – Registering with the appropriate tax office and applying for your official business registration number
French tax laws and regulations are complicated. Each owner’s financial portfolio is individual. Therefore we recommend that all owners seek professional tax and accountancy advice, with a French accountancy company, prior to registering their property rental business.
Our recommended French accountancy partners are SAREG, who specialise in accounting for French and international owners of rental properties.
Debbie Bradbury manages English-speaking enquiries. You can reach Debbie on firstname.lastname@example.org and +33 4 50 25 08 09
Camille PERINI manages French-speaking enquiries. You can reach Camille on email@example.com and +33 4 50 25 24 52
Registering a property rental business and obtaining the official registration number – the SIRET.
- New holiday rental businesses must register at a business registration centre, called a Centre des Formalités des Entreprises (CFE). There are different types of CFE, depending on your proposed business activity.
- The CFE alert all other official agencies of your new business, as relevant ie the relevant tax office, commercial court, and social security office
- All owners or holiday rental properties must have a SIRET number – a unique business registration number. To apply for this number, owners (and/or their accountants) complete form P0i no. CERFA 11921, within 15 days of the start of the rental business.
- Keep your SIRET number safe – you will need to use it time and again.
The French government publishes information pages, which go into more detail about rental business set up as below. Please note the pages are in French only.
For more details on legal requirements click here.
Click here for more information on tax regimes and income tax due on income generated from rentals.
2. Paying the business tax : Cotisation Foncière des Enterprises (CFE)
The CFE business tax is payable by those who habitually carry out a non-salaried professional activity, regardless of legal status, activity, or tax regime.
There are exceptions to this requirement – your accountant will be able to advise if you are eligible.
3. Providing invoices for every booking (if requested)
Each booking must have an associated invoice, even if guests rarely request them. OVO Network owners can download invoices, in bulk, if their accountant and /or the tax authorities request them, via our back office system ‘OVO Network PIMMS’.
4. Organising rental property insurance
It is not a legal requirement to inform your insurance agent that your property is a rental property. However, we highly recommend that all owners do so.
Insurance agents can keep owners informed of any changes in insurance laws and practices.
5. TV license
If you pay ‘taxe d’habitation’ for your rental home, the TV license payment included covers a fee for one TV.
Owners who pay the CFE tax must also pay a fee for each TV in the holiday rental property. There is a reduction in the fee if there are more than three TVs.
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6. License to play music in your rental property
SACEM is the French equivalent of the PRS in the UK.
SACEM issues licenses that provide the right to broadcast music and film.
Contact SACEM to find out more about their annual license fees, covering guests watching TV or listening to music in rental properties.
7. Smoke alarms and CO₂ detectors
Fire safety in rental properties is of utmost importance. For guest safety, you must install and regularly check smoke detectors that have the CE kitemark, and fulfill the ‘NF EN 14604’ standard.
CO₂ detectors are required in any property with fireplaces, solid fuel, gas or oil-fired heating, and/or hot water systems.
Your local fire safety prevention officer can advise on appropriate fire prevention equipment at your rental property.
We hope this guide has been useful. Next time round we highlight the regulations surrounding swimming pools that are available for guests to use.