Should we stop renting out our gîtes in France to save tax?
A reader has been advised that they would have to pay additional amounts on the part of the property that are available to holiday makers
Where part of a property has been used commercially, the tax authorities may argue that this section does not qualify for the principal residence exemption
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Reader question: We bought our property nine years ago and it consists of the house we live in and two other small houses (gîtes) that we have rented out for the last nine years via Airbnb. We hope to sell the property in the next couple of years to downsize.
We have been advised to close down the gîtes for 12 months before we sell so that there is no rental income showing on our tax return at the time of the sale. This is because we have been advised that we would have to pay additional tax on the part of the property that we have rented out if we do not. Is this right?
It appears that the suggestion is that you seek to treat the gîtes as part of your own principal residence for capital gains tax purposes.
It is not possible to answer definitively without more details, but this may be difficult if, as it appears, the gîtes are clearly separate from the main house and not used personally by yourselves.
Read more: running a gîte in France: why being on site matters for success
If part of a property has genuinely been used commercially, the tax authorities may argue that this part does not benefit from the principal residence exemption.
You say the gîtes have been listed on Airbnb and rented out for nine years. As such, it is likely the tax office would view them primarily as rental properties, meaning the proportion of the capital gain relating to them could be subject to capital gains tax, while the part you lived in would benefit from the main-home exemption.
Read more: many of France’s chambres d’hôtes face closure under 2026 tax and social charge changes
Allowing time to pass with no rental income declared, and during which you make personal use of the gîtes, might help support an argument that they now form part of the overall main-home property, but this is uncertain and there is no set ‘12 months’ rule.
It is worth noting, however, that any taxable gain would also benefit from taper relief reductions linked to the length of ownership.
The situation may be different again if your activity meant you were classed as professional furnished renters (loueurs en meublé professionnels).
