French Gites 3 of 5 - are you professional or not?

As I considered it, the tax section splits more logically into three - doing specific tax treatments after another key question.  This is "Am I a professional landlord?"

Like residency, whether you are a professional landlord (LMP) or a non professional landlord  (LMNP) is a matter of fact, not of choice, and assessed on your total household.  A wee care point - it is also technically viewed in a global context if you are tax resident here, so do not forget anything you rent out in the UK.

You are a professional landlord if you hit both of the below criteria:

1. Gross turnover (so your gross rentals before deducting including any agent fees) are over 23000 Euros per year; AND

2. It is your biggest source of active household income.  Pensions for income tax are Active income.

The Active part and the allowed deductions from deductions of are important.  If you have a part time job where your gross salary is 26000 Euros per year - and your total global letting turnover is 25000 Euros per year - then you hit criteria 1 but not criteria 2.  So you are LMNP.  

If however you have a pension of 24000 Euros after allowed income tax deductions OR savings income of 27000 Euros and letting income of 25000 Euros per year then you hit criteria 1 and criteria 2.  You are LMP.

LMP involves various registrations that I will not get into here its outside the scope of the article.  It does though say "check your position and your plans!"