My husband and I own a house in France which we let for holiday and short term use. Previously neither of us was tax resident and filled out non-resident tax returns in France declaring this income. Income around 15k euros per year gross. Costs involved in letting – managing and cleaning approx. 2.5k euro. We were tax resident in the UAE.
Pending Brexit I have been spending more time in France and have for the year 2018 declared myself fiscally resident in France. My husband remains actually and fiscally resident in the UAE.
My accountant told me he had submitted revenue tax returns for me on a micro bic basis as a chambre d’hotes. I had thought ( but maybe this is not correct as the accountant seemed confused that I had done so) that this meant I was obliged to register as a micro- entrepreneur. On this basis, I have registered myself as a micro-entrepreneur and received SIREN and SIRET numbers.
The letting business is run solely by me in rooms forming part of our main residence. We have provided cleaning although not any meals.
We both intend to live full time in France from 2021. I would like to be able to qualify for a permanent right of residence when this is possible. I currently have a one-year carte du sejour expiring in Jan 2020 on a non-active basis, although I declared the letting income at my rdv. (Whilst of course nothing is certain I think I have read that it might be possible post Brexit to qualify for 4-year card for those running an enterprise.)
I need some advice and have some questions:
- Can you advise generally? Do the steps I have taken sound correct?
- I have been asked to complete for 751-SD and wanted to check that I should tick the box to indicate that it is “Local d’habitation personnelle loué meublé autre que ceux visés aux 1 et 2 de l”article 1459 du Code General des Impots.” Am I correct in thinking that this would mean I would not be liable to pay CFE ?
- Since the business is run by me I was intending to declare the revenue as mine rather than mine and my husbands?
- If we accept an annual let of part of the property ( or all) will this change the potion? And if so what do I need to do in this event?
- Could you also just clarify social insurance and taxation regimes? With regard to income tax I was told by my accountant that Micro bic is more favourable to me but I know there are other regimes ( eg micro fiscal). do you concur that micro- BIC is the better one for me?
- I know there is a new system of deduction at source. I am waiting for my code to access my new “espace professional “ on the gouv impots site but do I simply declare my gross turnover and then they will deduct from my stated bank account?