The Investment
Price, Payment & Tax Orientation
The key numbers, the payment options, and a general orientation to the French tax landscape for hospitality businesses.
All details require independent professional verification by the buyer.
Asking Price
€697,000 (approx. $795,000/£597,000)
The asking price reflects a substantial property with significant work already completed — and a project still in progress. At approximately €380 per square metre of usable indoor space, this represents exceptional value for a property of this scale and character in the Dordogne.
Cash Purchase
The simplest route. Cash payment. Completion through a French notaire typically takes 2–3 months from signing the compromis de vente (preliminary contract). A 10% deposit is held in escrow upon signing.
French Mortgage
French banks lend to non-residents for property purchases. Typical terms require 20–30% deposit, with competitive fixed rates available. A mortgage broker with experience in non-resident lending can advise on current terms.
Other Options
The seller is open to discussing structured payment arrangements for the right buyer with a credible plan. Terms by negotiation. This flexibility is unusual and reflects a genuine desire to find the right custodian for the property.
Buyer's costs: In addition to the purchase price, buyers should budget for notaire fees (typically 7–8% of the purchase price for older properties in France), which cover registration taxes, land registry fees, and the notaire's own charges. These are standard, regulated costs and are payable at completion.
Important Notice
Professional Advice Is Essential
The tax, licensing, and regulatory information on this page and throughout this website is provided as general background orientation only. It does not constitute legal, tax, or financial advice. Tax law is complex, jurisdiction-specific, and subject to change. Every buyer's personal situation is different. It is the buyer's sole responsibility to engage qualified independent professionals — including a French notaire, accountant, and where relevant a cross-border tax adviser — to verify all permits, taxes, licensing requirements, and legal obligations before completing any purchase or commencing any business activity. The seller accepts no liability for the accuracy or completeness of the general information provided here.
General Background
Two Common Tax Regimes
Hospitality income in France is generally classified as business income — not passive property income. This may open access to deductions and depreciation. The two regimes most commonly used by hospitality operators in France are outlined below for general orientation. Your accountant will advise on which is appropriate for your situation.
Option A
Micro-Régime Simplifié
The tax authority applies a standard cost allowance to your revenue rather than tracking real expenses. Minimal administration and paperwork.
For classified tourist rentals and B&B accommodation, taxable income is calculated at just 29% of revenue — effectively a 71% deduction.
Best suited to small, stable operations with low renovation or financing costs. Ideal if you plan minimal changes to existing units and want the simplest possible bookkeeping.
Option B
Régime Reél
Real costs are deducted: repairs, supplies, professional services, marketing, loan interest, utilities, insurance, and more. Furnishings and equipment can be depreciated over time, reducing taxable profit during the reinvestment phase.
In the early years, renovation costs and equipment depreciation can significantly reduce taxable profit while revenue is building. Revenue can be reinvested into additional unit conversions and offset against income.
Often used by mixed hospitality projects of this scale — gîtes, B&B rooms, and restaurant — particularly during a phased renovation. Your accountant can advise on which regime best fits your personal circumstances.
Topics to Explore with Your Adviser
Areas Worth Investigating
VAT (TVA) Recovery
A restaurant operates within the VAT system from day one. If the accommodation business is structured as VAT-taxable, it may allow recovery of VAT on significant renovation expenses — meaningful during a major fit-out phase. This is an early structural decision with long-term financial consequences and should be discussed with an accountant before registration.
US Buyers: Cross-Border Planning
US citizens and Green Card holders continue to file US tax returns when living in France. Double taxation is typically reduced through foreign tax credits and treaty mechanisms. Cross-border reporting requirements should be handled by an adviser with Franco-American tax experience before the purchase is finalised.
Rural Zone Incentives
Depending on commune classification, some rural development zones in France offer temporary relief on business taxes for new or expanding enterprises. Worth investigating specifically with the Mairie of Saint-Martial-Viveyrol or a local adviser before completion — these incentives can materially improve early cashflow.
International Buyers: Residency Considerations
France taxes worldwide income for French tax residents — those spending more than 183 days per year in the country. Part-time operators from any country should consult with a cross-border tax adviser regarding permanent establishment rules and treaty provisions specific to their home jurisdiction.
Reminder: All tax and regulatory information on this page is provided as general background only and does not constitute advice of any kind. Tax law is complex, jurisdiction-specific, and subject to change without notice. It is the buyer's sole responsibility to obtain independent professional advice tailored to their personal circumstances before making any decisions. The seller does not warrant the accuracy or completeness of this information and accepts no liability in connection with it.
Les Aiguillons · Saint-Martial-Viveyrol · Dordogne · France