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France does have an equivalent to the UK’s business rate called: taxe professionnelle.

Rather like the UK, taxe professionnelle is calculated according to a national formula, but the calculation includes local factors. The formula includes region, department and commune factors so there is significant variation across France as each region, department and commune will add elements to the grand total. In general, more desirable areas have higher “business rates”.

The taxe professionnelle calculations are extremely complicated and there are many examptions. Certain trades have different rates – for example, accountants, architects, artists are taxed at 6% of gross earnings. There are total exemptions for farmers and tradesmen. There are also reductions and exemptions for companies located in development areas.

There are caps and rebates too! So you need an accountant to investigate!

The tax is payable at the end of each year in December and can also be paid in two instalments or you can elect to pay monthly. However, a new business gets 100% relief in the first year and 50% in the second year.

For more advice speak to your Centre d’impôts to establish the likely level of the tax for your business.

More Info:
Businesses in France
French Businesses
Gites

You could be forgiven that the pound’s slide towards parity with the euro is the end of civilisation as we know it. Barely a day goes by without the mainstream media lamenting our loss of exchange rate virility, or comparing the UK to Zimbabwe.

Case studies focus on the plight of retirees in the Dordogne or second-home owners in Chiantishire. A good investment rule, though, is that the moment there’s complete consensus about something is often the moment it ceases to be so. The pound is a case in point – Investors Chronicles’s article highlights four reasons why sterling is undervalued against the euro and why it might well bounce back before the end of 2009.