Do we need to Create a Company to open Gîtes? French Relocation FAQs

There are so many questions and red-tape hoops to jump through both before and after relocating to France. John Dislins offers tips for potential gîte owners and explains health insurance ‘top-ups’

Do we need to create a company to open gîtes?

We plan to open two gîtes after recently completing a barn conversion. Do we need to create a company first and what are the first main steps towards this?

If you intend to run 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 goods, in addition to your gîte rental income, then you need to create a business entity.

The type of entity is determined by your annual income. Depending on the location and the capacity of your two properties, your business might generate somewhere in the vicinity of €35,000 per annum. In this case, you could consider registering your business as a Micro-Enterprise. This gives you self-employed/sole trader status and is a good starting point, as there are no VAT or formal annual accounting requirements, only monthly or quarterly declarations.

The type of paperwork required to register a Micro-Enterprise includes copies of:

• Identification (passport)
• Residency (Titre de Séjour)
• Proof of address, such as a utility bill
• Completed Form P0 Micro CMB (Cerfa 15253*04), which must include your French National Insurance Number
• A legal declaration certifying the copy of your identification is a true representation of the original

If your spouse or partner (PACSed) is an intended to participate (Conjoint Collaborateur) in the business, they will also need to provide:

• Identification
• French residency
• Proof of address
• Marriage/PACS certificate (if the partner is your spouse)

Your intended business partner must also prove that they are not employed elsewhere, nor a shareholder (Associé) of another business. They also cannot be paid by your business. If your spouse is not an intended partner, you must declare that you have notified them of your intended enterprise.

Please note that to create a Micro Entreprise, the government require you to have an estimated turn over of €23,000 and above. If it is likely to be less, you might create an additional commercial element such as a bicycle rental service, for example. Some have gone as far as having a little shop to sell milk or bread to get around €23,000 rule.

Is the health insurance top-up mandatory in France?

What is the origin of the health insurance top-up? Is it required by law for all residents in France and how much does it cost per month?

The health insurance top-up, known as Complementary Health Insurance (Mutuelle), is literally a top-up, or upgrade, to the Basic French Health System (Assurance Maladie). It is not mandatory. This coverage is, however, highly recommended as it provides a greater choice for medical treatments. Rather than needing to wait to be seen at a public hospital, you can attend a private ‘Clinique’ at an affordable cost. The top-up insurance costs around 30€ per month.

What documents do we need to apply for French residency post-Brexit?

What guidance is available when applying for French residency post-Brexit? And what are the main documents we will need?

Applying for French residency since Brexit has become more challenging. The French Government suggests that if you are going to run a business, such as a gîte, you should apply for a work visa. Be aware that each type of visa has its own application paperwork and set of qualifying criteria, so it is recommended that you seek specialist advice about your particular set of circumstances.