Despite new challenges, British nationals continue to pursue their dream of owning and operating gîtes in France – here’s what you need to know about the evolving landscape.
For decades, the image of a British couple renovating a crumbling French farmhouse and turning it into charming holiday accommodation has been a staple of both daydreams and reality TV. While Brexit has fundamentally changed the rules of the game, an estimated 148,300 British nationals still call France home in 2024, and many continue to pursue their gîte dreams – albeit with more paperwork and planning than before.
Understanding the Gîte: More Than Just a Holiday Rental
Before diving into the complexities of post-Brexit life, it’s essential to understand what exactly a gîte is – a concept that doesn’t quite translate directly into English culture.
The word gîte comes from an Old French verb, “Gesir,” and literally means “a place to lie down.” Historically, gîtes were rustic accommodations offered by vintners, farmers, and shepherds to travellers passing through rural areas where no tourist hotels were available. The modern gîte tradition began in 1951 in the hamlet of Chaudol in Alpes-de-Haute-Provence, when Senator Émile Aubert launched the idea of rural families hosting city dwellers.
Today, a gîte typically refers to a self-catering holiday rental property in rural France, often a converted barn, farmhouse, or cottage. Unlike a chambre d’hôte (bed and breakfast), gîtes offer complete independence – guests have their own kitchen, living spaces, and privacy. The Gîtes de France organization certifies properties with a 1-5 star rating system based on amenities rather than quality judgments.
The Brexit Reality Check: What Changed for British Expats
The romantic notion of spontaneously buying a French property and living between two countries has become significantly more complicated since January 1, 2021. Here’s what British nationals now face:
The 90-Day Rule
The most significant change affects those hoping to run gîtes as holiday home owners. Visitors may stay for only 90 days out of 180 days. This limit covers the whole of the EU. This means British property owners who don’t have residency can no longer spend half the year managing their gîtes in person, forcing many to rethink their business models.
Visa Requirements for Longer Stays
For those serious about running a gîte business, obtaining the right to stay longer is crucial. Options include:
- Visa de Long Séjour Temporaire Visiteur: For holiday home owners wanting to stay longer than 90 days
- Long-stay visa (VLS-TS): Known as the ‘Long-stay visa equivalent to residence permit’, grants a year-long stay in France. Within three months of arrival, registration at the French Immigration and Integration Office is mandatory
- Professional visas: For those running gîtes as a primary business
Financial Requirements
The financial bar has been raised significantly. For a retirement visa, you need 30k pension income, and if one spouse dies, the survivor needs to maintain that income level individually. Additionally, having 100k in the bank strengthens your application.
The Tax Landscape: A Major Shift for Gîte Owners
Perhaps the most significant recent development affecting gîte owners isn’t Brexit-related but comes from proposed French legislation. The Loi des Finances 2024 threatens to dramatically alter the economics of running gîtes.
The Micro-Entrepreneur Tax Crisis
Previously, micro-entrepreneurs have benefitted from a 71% tax abatement. This could now be slashed to 30% for virtually everyone running gites. This change is particularly devastating because as a micro-entrepreneur in France, you cannot offset ANY costs or purchases against your income.
Only properties in mountain ski zones and areas classified as “très peu dense” (very sparsely populated) will maintain the 71% tax break – and very few areas actually qualify for this designation.
Property Taxes
British gîte owners must navigate several French taxes:
- Taxe foncière: Annual property ownership tax
- Taxe d’habitation: Residence tax (being phased out for primary residences but still applies to second homes)
- Capital Gains Tax: 34.5% (19% + 15.5% social charges) on property sales, regardless of nationality
Double Taxation Treaties
The UK-France double taxation agreement remains in place, protecting property owners from being taxed twice on the same income. However, understanding which country has taxation rights for different income types requires professional advice.
Healthcare: From EHIC to New Realities
The EHIC is no longer valid; expats must obtain a GHIC or private health insurance and register with the French healthcare system. For those establishing residency, access to France’s highly-rated healthcare system remains possible, but the path to coverage has become more complex.
The Market Reality: Oversupply and Competition
Even before Brexit and tax changes, the gîte market faced challenges. The reasons for the over-supply are usually blamed on television programs such as ‘No Going Back’ that seemed to show that one could buy two houses in France, live in one, and rent out the other one for 50% of the year living comfortably from the income it provided.
This oversupply means success requires more than just a pretty property:
- Exceptional marketing and online presence
- Unique selling propositions (pools, specific locations, themed experiences)
- Professional management and maintenance
- Excellent customer service and local knowledge
Success Stories: Adapting to New Realities
Despite challenges, British expats continue to make their gîte dreams work. Post Brexit, the house hunters are still arriving as we hoped they would, reports one gîte owner in Charente.
Successful operators are those who:
- Offer unique experiences (organic produce, artisan workshops, language immersion)
- Build strong relationships with local communities
- Maintain high standards and earn excellent reviews
- Diversify income streams beyond just accommodation
Regional Preferences: Where British Gîte Dreams Thrive
The Nouvelle-Aquitaine region in southwest France is home to a substantial British expat community, with around 40,000 residents. Known for its scenic countryside, charming villages, and renowned vineyards, this region offers a slower, more relaxed pace of life.
Other popular regions include:
- Occitanie: Approximately 25,000 British expats
- Provence-Alpes-Côte d’Azur: About 25,000 British residents
- Brittany and Normandy: Traditional British strongholds
Future Prospects: A Glimmer of Hope?
There have been attempts to ease restrictions for British property owners. While a proposed amendment to allow automatic long-stay visas for British second-home owners was rejected as unconstitutional in January 2024, discussions continue about facilitating longer stays for property owners who contribute to local economies.
Practical Advice for Aspiring Gîte Owners
Before You Buy:
- Visit extensively: Rent in different regions and seasons
- Learn French: Integration and bureaucracy demand language skills
- Secure financing: French mortgages remain available to British buyers
- Calculate carefully: Factor in all taxes, maintenance, and management costs
- Seek professional advice: Use bilingual lawyers and accountants familiar with both systems
After Purchase:
- Establish legal structure: Choose between micro-entrepreneur, SARL, or other business forms
- Obtain necessary permits: Check local tourism and safety regulations
- Join professional networks: Gîtes de France certification adds credibility
- Build local relationships: Your success depends on community integration
- Plan for seasonality: Most rural gîtes struggle to fill winter months
The Verdict: Dream Deferred, Not Destroyed
The French gîte dream hasn’t died – it’s evolved. Success now requires more planning, higher financial reserves, and greater commitment to either obtaining residency or managing properties remotely. Brexit has made the process a bit more complicated (and expensive), but for the average person, we can continue to live in Europe, it just means that we have more forms to fill in, we have to have more money behind us and we need to be a bit more organised.
For those willing to navigate the new landscape, the rewards remain: a life in rural France, the satisfaction of creating memorable holiday experiences, and the opportunity to be part of communities that, despite political changes, generally remain welcoming to those who make genuine efforts to integrate.
The British love affair with French property continues, just with more paperwork and perhaps a touch more realism than the dreamers of the pre-Brexit era. As one expat noted, success comes from accepting that “fail to prepare, and prepare to fail” – but for those who prepare well, the French gîte dream remains very much alive.
For more information on buying property and establishing a business in France, consult the official France-Visas website and seek professional advice from specialists in French property and business law.