Tuesday, 5 March 2019

Visitor tax starting to bite

The growth of short term residential lettings, either a gite or Airbnb, is a concern apparently to the bigger organisations such as hotels. They claim that owners of such short term premises compete unfairly as they don't have the same standards to meet, do not pay business rates and often do not pay tax on their earnings.
Having the "stay" tax now charged by internet letting companies such as Homeaway or Airbnb means owners no longer need to account for it, but the bureaucracy of registering and making monthly reports for other sources remains. In Tarn and Garonne the nightly rate is fixed at 5% (not a straight percentage of the gross rental, there are "chargeable" and "exempt" guests) and other areas have other rates.
The rates charged include the tax which is paid by the guests, but remitted by the owner or manager. The amounts are supposed to fund the tourism infrastructure which will attract and improve the stay of visitors to the area. As a gite owner we can appreciate that big cities or resorts may see the competition as unfair, but given the absolute dearth of decent hotel accommodation in this part of the world we are actually only competing with other gite owners.
The stay tax is in addition to the tax fonciere and habitation and in most cases the income tax we pay on the letting income. Maintaining our properties is not cheap and wages for cleaners, gardeners and managers can be substantial. Mostly we are private owners wanting a bit of income from our property and not extra bureaucratic paper work (sorry, internet work).
Where is my gilet jaune!