Here are the main things to know and plan for, and a few hard truths
Setting up and running a bed-and-breakfast or a gite in France can be an appealing venture for those seeking to combine a lifestyle change with income generation. However, this prospect comes with unique challenges, especially if you are a foreigner. Here’s a breakdown of what to consider when preparing for this type of business.
Key Considerations in Preparing a Hospitality Business
Running a B AND B requires more hands-on management compared to a gite. Managing a gite is less time-intensive as guests are typically more independent. Whereas B AND B hosts must be available to welcome guests, clean, and serve breakfast – which can be a full time job! Both types of accommodations require strong interpersonal skills, patience, and a passion for hospitality. Additionally, setting up a successful B AND B often necessitates what I call a partnership with your partner or spouse, on the division of labor and responsibilities.
Financial Viability and Income Potential
In most cases, the hospitality income from a B AND B or gite will not cover all your living expenses. While a well-run property can yield a modest salary, it typically supports expenses related to the property rather than providing a full income. Financial planning is crucial to account for seasonal revenue fluctuations, especially in regions with varying tourist demand.
Differences Between B AND Bs and Gites
Bed-and-breakfasts and gites have distinct legal and operational frameworks. A gite is considered an “independent furnished tourist accommodation,” almost like a small hotel, meaning it must be separate from the owner’s residence.
In contrast, a B AND B is legally required to operate within the owner’s primary residence. That means owners are required to host guests within their personal space.
From a service perspective, gite owners have flexibility after they have opened the place for the paying guests, while B AND B hosts must offer specific services like breakfast. Also, capacity limits also differ: with B AND Bs capped at five rooms, while gites can accommodate larger groups.
Legal and Regulatory Requirements
You must comply with local regulations to set up this type of pseudo hospitality business.
B AND B owners need to register with the Trade and Companies Register (RCS) and obtain local permits from the town hall. Depending on the location, specific regulations may apply, including zoning and safety standards for properties accommodating over 15 guests.
Like all owners, as a foreigner you must also navigate tax obligations and, in some cases, join the Social Scheme for Self-Employed (TNS) if income thresholds are met.
Finding and Buying a Suitable Property
You can either purchase an existing guesthouse with an established clientele, or buy a property for renovation, which offers more customization but requires time and financial investment. When purchasing an existing B AND B, conducting some sort of due diligence to verify financial records and property assets is critical. That’s because owners rarely have formal documentation. Renovations, especially in older properties, can be costly and time-consuming, averaging between €2,000 and €2,800 per square meter in 2024.
Advantages and Challenges for Foreign Owners
Owning a hospitality business in France offers lifestyle benefits and the opportunity to immerse oneself in French culture. However, language barriers, complex regulations, seasonal income, high operational costs, and, most important, competition can pose challenges. Success often depends on solid marketing, an understanding of French business etiquette, and a willingness to adapt to local expectations.
Final Thoughts
Overall, running a guesthouse in France can be rewarding if well-planned. Essential to success are a strong local network, familiarity with the language and legal framework, and careful financial preparation. As a foreigner, I suggest that you both leverage local expertise and people you know, and maintain a solid bilingual online presence, to market your property to foreign tourists – as well as French tourists.
ARE HOUSE HUNTING? You can still get this guide for FREE. [Since 2017 my readers tell me if useful, so maybe it is 😊] Here is the table of content: 1 Ready, aim (about preparing your project), 2 The French Context, 3 Real estate agents, 4 Valuation, 5 Legals, 6 Money matters, 7 renovating a house, 8 Psychology, 9 Buying a gîte.
You can read the online version here: https://tinyurl.com/FPCguide24, or follow the link to get your (free) PDF copy: https://www.frenchproperty.coach/guide
NEED REAL ESTATE ADVICE? If you require customized assistance in your search (or anything French real-estate related) don’t hesitate to reach out! Best, Pierre Guillery [RCS Nimes 533018321, carte prof. CPI30022018000032895.]
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