Help! We want to move to St Foy - Any advice?
 

Hi all. My husband, small toddler and I are planning a move to the ski area of St Foy but we are sturggling with where to start.

We have visited the region, checked out the area, amenities/schools etc and made a business and marketing plan but we are unsure what our next move should be and would love to hear if someone has done anything similar?
We both speak broken French but with the help of Rosesseta Stone will be better by the time we go and we will be purchasing a rental home (living in part and renting part to holiday makers)- this will be mortgage free and we estimate to earn a joint income of 25-30,000 Euros per year. I have read horror stories about the tax implications and complications of being self employed but wondered if anyone has any experience? We are considering paying a consultancy to help us but also not sure where to start with that?

Any advice or help would be greatly appreciated.

Re: Help! We want to move to St Foy - Any advice?
 

That sounds a fairly optimistic income figure, but no doubt you have done the sums.

Income tax in France is reasonably low but cotisations are very high; expect to hand up to a quarter of your income over to the state.

Horror stories tend to happen to people who either didn't bother to find out in advance how the system works, or who did find out how it works but decided to ignore the rules, or who got bad advice, and it's the last category that I always feel sorry for. As long as you go into it knowing and understanding the system, which you seem to be aiming to do, you will not necessarily find it easy but there is no reason why it should turn into a horror story. Leave yourself a generous safety margin because, with France's economy being in the state it's in, taxes etc. are likely to increase rather than decrease over the next few years.

If you pay a consultancy, be very careful who you use, and don't blindly follow their advice, it is very much in your interests to have a good grasp of how it all works.

Once you have moved, you could (unless things change) be eligible for free business advice. The government funds a raft of support for start-up businesses, which you can access via your local chamber of commerce, possibly via your local communaute des communes if they have a business centre, or the pole emploi if you register there. A trained business adviser will help you with your market research and your business plan, advise you on the best business regime for your own particular circumstances, point you towards any funding that you might be eligible for, and provide ongoing business advice for the first year or so if you wish. Personally I would choose this route over a paid consultant who may or may not be as good as state-trained adviser and will cost a lot more than nothing. But you have to apply for all this before you set up the business; once you are up and running, you won't qualify.

It is a very different ball game to running a business in the UK so never assume anything. If you get yourself a French business adviser you will probably find he talks a lot about 'rights and responsibilities' (droits et devoirs). France likes to claim that this is the cornerstone of the system; both sides have obligations and both sides have entitlements, and if you play by the rules the state will play fair with you. It is however your responsibility to know your obligations and make sure you meet them, because the state will not prompt you - running your business is your job and if you don't keep on top of it, the bills will pour in thick and fast.

Sorry for the rant. Good luck :)

Re: Help! We want to move to St Foy - Any advice?
 

Obviously we don't know what size of property you envisage purchasing nor how many holiday makers you hope to cater for but I agree with ET, €25-30k/PA seems an extremely ambitious target.

Even under the basic auto entrepreneur scheme you will pay a flat 23% of your turnover, other business models will cost more.

Good luck with your plans anyway.

Incidentally however discrete you try to be (and toddlers are noted for being quiet people !) I think most holiday makers will not opt for a property shared with it's owners when there are plenty of unencumbered lets to choose from.

Re: Help! We want to move to St Foy - Any advice?
 

I suggest consulting a French Expert-Comptable the next time you come visiting the region. He/she'll advise you as to the best business structure to set up, what S.S. côtisations and various professional taxes you'd have to pay, and, based on their in-situ knowledge of the region's economic situation, might give a true idea of what take-home income you might expect.
Like the others above, IMO your estimation is a tad optimistic in the present economic crisis.