Micro-entrepreneur: Operating a bed and breakfast

In 2020, bed and breakfasts accounted for 10% of commercial tourist accomodation in France. Around 21,500 individuals rented out a part of their home (source: Accueillir Magazine ).

This business activity, which can be the main activity or a secondary activity, is governed by Articles L. 324-3 and D. 324-13 et seq. of the Tourism Code.

Bed and breakfast rooms are defined as "furnished rooms located in private homes used to accomodate tourists for a fee, for one or more night(s), and offering services".

This activity can be carried out as a micro-entrepreneur but must comply with certain obligations.

Obligations of the bed and breakfast operator

Renting out bed and breakfast accommodation comes with several obligations:

• This activity is subject to a prior declaration to the mayor.
• The renter must use his or her home to accommodate guests.
• The maximum capacity is of 5 rooms and 15 people.
• The service comprises accomodation in a furnished room, the provision of breakfast and linen, and the cleaning of the room which cannot be charged as a supplement.
• A minimum level of comfort (room of at least 9m2, access to bathroom and toilets) must be guaranteed.

Applicable scheme

The renting of bed and breakfast accommodation is a commercial business activity. Therefore, the relevant center for business formalities (Centre de Formalités des Entreprises (CFE)) is the Chamber of Commerce and Industry (Chambre de Commerce et d’Industrie (CCI)) and the operator must be registered in the Registry of Trade and Companies (Registre du Commerce et des Sociétés (RCS)).

Amount of tax and social security contributions:

• The turnover must not exceed €176,200.
• The contribution rate on the turnover is of 12.8% (6.4% until the end of the third calendar quarter that follows the activity start date for entrepreneurs benefitting from the Aid to start or take over a business (ACRE).
• Since the renting of bed and breakfast rooms is subject to industrial and commercial profits (BIC), it is subject to a rate of payment of the income tax in discharge of 1%.
• The renter must pay an additional contribution of 0.1% of the turnover for the funding of vocational training.
• The threshold of the basic exemption from VAT that is applicable is of €85,800 the first year (a tolerance threshold of €94,300 applies the following years if the VAT threshold was not exceeded the year before).