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Choosing your legal status
Sole proprietor, LLC or SAS? Carte G, insurance and legal obligations
Choosing the right legal status is one of the first concrete decisions when starting your property management company. After understanding the market , this choice impacts your taxation, liability, credibility with property owners and growth possibilities.
This chapter covers possible legal statuses, the Carte G question, mandatory insurance and administrative steps to start legally. We also cover new obligations under the Le Meur Law 2024, VAT regime, tourist tax, GDPR compliance and social security contributions for each status.
Possible legal statuses
Micro-enterprise (sole proprietor)
Recommended to startAdvantages
- Created in 24h, zero fees
- Simplified accounting
- Proportional social charges (21.1% for services)
- No VAT under 36,800€ (base exemption)
Limitations
- Revenue cap: 77,700€/year (services)
- Unlimited personal liability
- No deduction of actual expenses
- Less "professional" image for some property owners
SARL / EURL (French LLC)
Advantages
- Liability limited to contributions
- No revenue cap
- Deduction of actual expenses
- Credibility with property owners and partners
Limitations
- Setup costs (~1,500-2,500€)
- Mandatory accounting (accountant ~2,000€/year)
- Higher social charges (~45% of salary)
SAS / SASU (French simplified joint-stock)
Advantages
- Maximum statutory flexibility
- President treated as employee (better social protection)
- No contributions without compensation
- Ideal for welcoming investors or partners
Limitations
- Very high social charges (~75% of gross salary)
- Setup and accounting costs identical to SARL
Our recommendation
Start as a micro-enterprise to test your business risk-free. As soon as you approach 50,000€ annual revenue -- a realistic threshold when building your offer and pricing well -- switch to SARL or SAS depending on your strategy. The recommended NAF code is 6820B (rental and operation of own or leased real estate) or 6832A (property and real estate management). In parallel,create your digital welcome guide -- it is free and professionalizes your image from the start.
URSSAF and social charges by status
The weight of social contributions varies considerably from one status to another. It is a determining factor in your actual net compensation. Here is a detailed comparison to understand what you actually keep in your pocket.
| Status | Charge rate | Calculation basis | Net on 1,000€ billed |
|---|---|---|---|
| Micro-enterprise (BIC services) | 21,1% | Collected revenue | ~789€ |
| EURL/SARL (majority manager) | ~45% | Net compensation paid | ~690€ |
| SASU/SAS (president) | ~75% | Gross salary (employer + employee contributions) | ~571€ |
Micro-enterprise (sole proprietor)
- 1 Contributions calculated on collected revenue
- 2 No charges if no revenue
- 3 Monthly or quarterly declaration on autoentrepreneur.urssaf.fr
- 4 ACRE option available: reduced rate of 10.6% in the first year
SARL - Majority manager
- 1 Affiliated with the TNS scheme (SSI)
- 2 Minimum contributions (~1,100€/year) even without compensation
- 3 Contributions on dividends if > 10% of share capital
- 4 Annual adjustment on the DSI
SAS - President
- 1 Treated as employee: general Social Security regime
- 2 No contributions if no compensation
- 3 Better social protection (retirement, disability)
- 4 Dividends not subject to social charges (30% flat tax)
Concrete impact on your compensation
For a property management company generating 60,000€ in annual revenue, here is what you keep after social charges (excluding taxes and operating costs): as a micro-enterprise, approximately 47,340€ net; as a SARL, approximately 41,400€ net (but with deduction of actual expenses); as a SAS, approximately 34,260€ net (but with better social protection and possible dividends as a supplement). The choice is not just about rates: it is a trade-off between immediate compensation, social protection and deduction capacity. For more details, see ourchapter on taxation and accounting.
When and how to transition from micro-enterprise to company
The micro-enterprise has a natural lifespan. When your business takes off, several signals indicate that it is time to migrate to a more suitable structure. Here is how to anticipate this transition without wasting time or money.
Warning signals
Revenue > 60,000€/year -- You are approaching the 77,700€ cap. Plan ahead: if you exceed it for 2 consecutive years, you automatically switch to the actual reporting regime.
Actual expenses > 34% of revenue -- The 50% flat-rate deduction for BIC services is no longer sufficient. Your actual expenses exceed what the micro scheme offers you.
Need for a partner -- A partner brings capital or skills: impossible as a micro-enterprise.
Liability at stake -- Valuable properties to manage, employees to hire: unlimited liability becomes too great a risk.
SARL or SAS: which one for your situation?
| Criterion | SARL / EURL (French LLC) | SAS / SASU (French simplified joint-stock) |
|---|---|---|
| You are alone | EURL | SASU |
| You want to minimize charges | Best choice (~45%) | More expensive (~75%) |
| Better social protection | TNS (basic coverage) | Treated as employee |
| You do not pay yourself at the start | Minimum contributions (~1,100€/year) | No contributions |
| You are targeting investors | Possible but rigid | Ideal (statutory flexibility) |
| Optimized dividends | SSI contributions if > 10% capital | 30% flat tax only |
Step-by-step migration process
Consult an accountant (2-4 weeks before)
Comparative tax simulation, status selection, calendar optimization. Budget: 200-400€ for a consultation.
Draft the company articles of association
With a lawyer (800-1,500€) or via an online platform like Legalstart (150-300€). Minimum share capital: 1€ symbolic.
Deposit capital and publish the legal notice
Bank deposit (~0€ if same bank), legal notice (~150-250€ depending on department).
Register the company at the one-stop shop
Via formalites.entreprises.gouv.fr. Timeline: 1-3 weeks. Cost: ~50-70€ (court registry).
Transfer contracts and close the micro-enterprise
Amendments to management contracts, transfer of platform accounts, cancellation of micro-enterprise at URSSAF. Remember to invoice your last services under the micro regime.
Estimated total budget: between 500€ (online platform setup) and 3,000€ (with lawyer and accountant). Average timeline: 4 to 8 weeks from initial planning to effective registration. Include these costs in yourbusiness plan.
The Carte G: do you need it?
The Carte G (professional real estate management card) is governed by the Hoguet law. It is the question every future property manager asks. The answer depends on your business model.
Carte G NOT required if:
- You do NOT collect rent on behalf of the property owner
- The property owner receives payments directly (Airbnb/Booking pays the owner)
- You invoice your services (cleaning, check-in, management) directly to the owner
Carte G REQUIRED if:
- You collect rent on behalf of the property owner
- You have a management mandate that includes payment collection
- You manage direct bookings (off-platform) and collect payments
In practice: most property management companies start WITHOUT a Carte G by configuring platforms so payments go directly to the owner. You then invoice your commission as a service fee. This is the simplest and most common model.
Decision tree: Carte G
Follow this path to determine if you need the Carte G for your specific situation.
Do you collect rent on behalf of the property owner?
Do payments go directly through platforms to the property owner?
NO CARTE G NEEDED
Standard service provision model
GREY ZONE
Consult a real estate lawyer
Do you have a signed payment collection mandate with the property owner?
CARTE G REQUIRED
+ Financial guarantee of 30,000€ minimum
LEGAL RISK
Collecting payments without a mandate or Carte G is illegal (Hoguet law)
Common property management scenarios
Scenario 1: You manage the Airbnb listing, check-in and cleaning. Airbnb pays the owner directly. You invoice a 20% commission to the owner. → No Carte G needed.
Scenario 2: You manage a property on Booking.com. Payments are configured to go to the owner's account via the Channel Manager. You invoice your services separately. → No Carte G needed.
Scenario 3: You have your own direct booking website. Guests pay into your account. You transfer to the owner after deducting your commission. → Carte G required.
Scenario 4: You manage a mixed portfolio (Airbnb + direct bookings). Direct bookings go through your bank account before transfer. → Carte G required for the payment collection portion.
Le Meur Law 2024: what changes for property management companies
Law No. 2024-1039 of November 19, 2024 (known as the Le Meur Law) significantly strengthens the regulation of furnished tourist accommodations in France. If you are starting a property management company, these new rules are at the heart of your value proposition: you help property owners stay compliant.
Key measures that impact your business
Mandatory registration number for all furnished rentals
Each tourist rental must obtain a registration number from the town hall. Without this number, it is impossible to publish a listing on Airbnb, Booking or any other platform. The management company must ensure that each property in its portfolio has this number.
Mandatory EPC (Energy Performance Certificate)
Tourist rentals will need to meet a minimum EPC rating. From January 2025, it is forbidden to rent energy-inefficient properties rated G, then F from 2028, and E from 2034. The management company must verify the EPC of each property before taking it on.
120-night limit per year for primary residences
Municipalities can lower this cap to 90 nights in tight housing areas. The management company must implement rigorous tracking of the number of nights per property. Exceeding the limit exposes the owner to a 15,000€ fine.
Taxation aligned with unfurnished rentals
The micro-BIC deduction for unclassified furnished rentals drops from 50% to 30% (cap lowered to 15,000€). Classified furnished rentals retain a 50% deduction (capped at 77,700€). This strengthens the case for star classification -- a service you can offer.
Strengthened powers for condominiums
Condominiums can now prohibit tourist furnished rentals by a simple majority vote. The management company must check the condominium rules before accepting a property.
Your #1 sales argument
The Le Meur Law significantly complicates rental management for individual property owners (find all obligations in ourregulation and compliance chapter). It is your best prospecting argument: "I handle regulatory compliance for your property -- town hall registration, 120-night tracking, EPC, tourist tax declaration. You have nothing to manage." Adigital welcome guide reinforces this professional image by offering a flawless guest experience from the first booking.
VAT regime in detail
VAT is often a source of confusion for property management companies. Your liability depends on your revenue and your status. Here is everything you need to know to invoice correctly and optimize your situation.
VAT base exemption
You do NOT charge VAT if your annual revenue stays below the thresholds:
- 136,800€ for service provisions (commission, management)
- 291,900€ for trading activities (if you resell cleaning services)
- 3 Increased tolerance threshold: 39,100€ (one-off exceeding without immediate switch)
Mandatory mention on your invoices: "VAT not applicable, article 293 B of the CGI"
Standard VAT regime
Mandatory beyond the thresholds, or by voluntary option. You charge VAT to your clients and remit it to the state, but you recover VAT on your purchases.
- 1Standard rate: 20% on your commissions and management services
- 2Reduced rate: 10% on tourist accommodation (if you rent in your own name)
- 3 Recoverable VAT on: equipment, software, vehicle, cleaning subcontracting, accountant
VAT: practical cases for property management companies
Your management commission (15-25% of rental revenue) -- Subject to VAT at 20% if you are liable. This is your main revenue.
Cleaning billed to the owner -- Subject to 20%. If you subcontract cleaning to a non-VAT registered sole proprietor, you cannot recover VAT on this expense, which reduces your margin.
Linen and consumables rebilled -- Subject to 20%. You can recover VAT on your purchases of linen, welcome products, etc.
Should you voluntarily opt for VAT?
Yes, if: you have many deductible investments (equipment, vehicle, software) or if your clients (property owners) are themselves subject to VAT (e.g., SCI taxed as a corporation). No, if: your clients are individuals (VAT increases your prices by 20% without them being able to recover it) and your deductible expenses are low. When starting out, the exemption is generally the best choice.
Tourist tax: complete guide
The tourist tax is owed by guests staying in tourist accommodation. As a property management company, you need to understand who collects it, how to declare it and what your responsibilities are.
Tourist tax schedule (per person per night)
| Accommodation category | Floor rate | Ceiling rate |
|---|---|---|
| Unclassified furnished rental | 1% to 5% of nightly rate excl. tax | Max 4.00€/pers./night |
| 1-star furnished rental | 0,20€ | 0,40€ |
| 2-star furnished rental | 0,30€ | 0,90€ |
| 3-star furnished rental | 0,50€ | 1,50€ |
| 4-star furnished rental | 0,80€ | 2,30€ |
| 5-star furnished rental | 1,50€ | 4,00€ |
Exact rates are set by each municipality. Check the relevant intercommunal authority website for the applicable rate.
Automatic collection by platforms
Airbnb, Booking.com, Abritel/VRBO automatically collect and remit tourist tax in most French municipalities. The guest pays it on top of the nightly rate. You have nothing to do for these bookings, but you must still declare the overnight stays to the municipality (often via a dedicated platform like DeclareSTourism).
Manual collection (direct bookings)
For off-platform bookings (website, phone, word-of-mouth), it is the host (owner or mandated management company) who must collect the tax from the guest and remit it to the municipality. Frequency: monthly, quarterly or annually depending on the municipality. Failure to collect: fine of up to 12,500€.
The management company's responsibility
You must clearly define in your management contract who is responsible for declaring and remitting the tourist tax. In practice, most property management companies include this service in their management package. It is an additional argument for property owners: "I handle the tourist tax for you, including quarterly declarations." Awell-structured welcome guide allows you to display tourist tax information to guests transparently.
Essential insurance
Professional Liability Insurance (RC Pro)
Mandatory. Covers damages you could cause to property owners or guests as part of your business. Cost: 200 to 600€/year depending on your revenue and number of properties.
Financial guarantee (if Carte G)
Required only if you hold a Carte G and collect funds on behalf of third parties. Minimum amount: 30,000€. Obtained from a bank or specialized organization.
Multi-risk professional insurance
Recommended. Covers your professional premises, equipment and tools. If you work from home, verify that your home insurance covers professional activity.
PNO (Non-Occupant Owner) -- for your clients
This is not your insurance, but the property owner's. PNO insurance covers the property in seasonal rental (water damage, fire, etc.) when the owner does not reside there. Verify that each owner in your portfolio has it -- it is a management contract point not to be overlooked.
Professional liability insurance comparison
| Insurer | Indicative rate | Coverage ceiling | Key strengths |
|---|---|---|---|
| Hiscox | 200-400€/an | 1,5M€ à 5M€ | 100% online subscription, specialist for liberal professions |
| AXA | 300-600€/an | 2M€ à 7,5M€ | Agency network, personalized support, extended coverage |
| MMA | 250-500€/an | 1,5M€ à 5M€ | Competitive rates, legal protection option included |
| MAAF | 200-450€/an | 1M€ à 3M€ | Good value for money, ideal for micro-enterprises |
| Simplis (en ligne) | 150-300€/an | 500K€ à 2M€ | Cheapest option, subscribe in 10 minutes, basic coverage |
Indicative rates for revenue < 100,000€ and a portfolio of fewer than 20 properties -- check current offers from each insurer as rates change regularly. Always request multiple quotes. Check exclusions: some contracts exclude key loss, linen-related damage, or last-minute cancellations.
What your professional liability must cover
- 1 Material damage caused to managed properties
- 2 Bodily harm (guest falling, etc.)
- 3 Key loss and lock replacement costs
- 4 Professional error or omission (bad advice, forgotten booking)
- 5 Subcontractor fault (cleaning, maintenance)
- 6 Legal protection in case of dispute
- 7 Cyber risks (if you manage guest data)
- 8 Reputation damage (poor review management)
The management mandate contract in depth
The management mandate is the foundational document of your relationship with each property owner. It defines what you do, what you do not do, how much you are paid and under what conditions. A well-drafted contract protects you as much as it reassures the owner.
Management mandate vs service contract
| Criterion | Management mandate | Service contract |
|---|---|---|
| Carte G required | Yes (if collecting payments) | No |
| You collect rent | Yes, on behalf of the owner | No, the owner receives directly |
| Decision-making autonomy | Strong (you act on behalf of the owner) | Limited (you perform defined tasks) |
| Liability | Enhanced duty of care | Standard duty of care |
| Regulation | Hoguet Law (strictly regulated) | Standard commercial law |
| Recommended for | Experienced companies with Carte G | Companies just starting out |
Essential clauses for your contract
Mandatory clauses
- 1Party identification -- SIRET, address, legal representative
- 2Property description -- Address, area, inventory, condition report
- 3Scope of services -- Exhaustive list of included and excluded services
- 4Compensation -- Percentage, fixed amount, commission calculation, additional fees
- 5Duration and termination conditions -- Notice period, grounds for early termination
Recommended clauses
- 1Exclusivity clause -- The owner cannot entrust the property to another manager
- 2Rate revision clause -- Option to review commission annually
- 3Owner availability clause -- Periods blocked by the owner for personal use
- 4Subcontracting clause -- Authorization to use third-party providers (cleaning, maintenance)
- 5GDPR clause -- Guest data processing and respective obligations
Should you have the contract reviewed by a lawyer?
Yes, strongly recommended for the first template contract. A lawyer specializing in real estate or business law charges between 300€ and 500€ for drafting or reviewing a property management service contract. This investment protects you for all subsequent contracts, as you will only need to adapt the specific details (property description, pricing). Free templates found online are often incomplete or unsuited to seasonal rental.
GDPR compliance for property management companies
As a property management company, you collect and process personal data: guest ID documents, owner contact details, booking data, payment information. The GDPR (General Data Protection Regulation) imposes obligations on you, even as a micro-enterprise.
Data you collect
- 1 Guest ID documents (mandatory police form)
- 2 Names, emails, phone numbers of guests and owners
- 3 Booking data (dates, amounts, platforms)
- 4 Bank details (owner's bank account)
- 5 Property photos and videos
Your concrete obligations
- 1 Maintain a data processing register (even simplified)
- 2 Inform individuals about the use of their data
- 3 Delete data when no longer needed
- 4 Secure storage (no ID documents on Google Drive without protection)
- 5 Include a GDPR clause in your management contract
Concrete actions to implement
1. Privacy policy -- Write a simple document (1-2 pages) explaining what data you collect, why, how long you keep it and how individuals can exercise their rights (access, rectification, deletion).
2. Retention period -- Police forms: 6 months. Accounting data: 10 years. Marketing data (emails): 3 years after last contact. Scanned ID documents: deletion after check-out.
3. Data Processing Agreement (DPA) -- If you use subcontractors (channel management software, cleaning provider accessing booking information), a processing agreement must govern the relationship. Most SaaS software already includes a DPA in their terms of service.
Setup checklist
Micro-enterprise to start, SARL/SAS to scale
Via guichet-entreprises.fr or URSSAF (sole proprietor)
Received within 1 to 4 weeks after registration
Compare offers from Hiscox, AXA or MMA -- indicative budget 200-600€/year, check current rates
Mandatory from 10,000€/year revenue as micro-enterprise
The document that governs the relationship with each property owner -- have it reviewed by a lawyer (300-500€)
Depending on your municipality, commercial activity declaration
Mandatory since Le Meur Law 2024 -- exclude energy-inefficient properties rated G
Identify the rate per municipality, configure automatic or manual collection
Simple document explaining guest and owner data processing
Free on LivretAccueil -- professionalizes your image from the first property
DéclaraTourisme or equivalent for your municipality for night declarations
Key takeaways
- 1The micro-enterprise is the best status to start (zero fees, created in 24h)
- 2The Carte G is NOT required if payments go directly to the owner via platforms
- 3Professional liability insurance is essential -- budget approximately 200-600€/year depending on your profile (indicative rates, check current offers)
- 4Switch to SARL/SAS as you approach 50,000€ annual revenue
- 5NAF code 6820B or 6832A is suited for property management activity
- 6The Le Meur Law 2024 requires energy certificates, registration number and 120-night limit -- it is your #1 sales argument
- 7VAT exemption (under 36,800€) is generally the best choice when starting out
- 8Tourist tax is automatically collected by Airbnb/Booking but must be declared by you
- 9Social charges range from 21.1% (micro) to 75% (SAS) -- anticipate the impact on your net pay
- 10GDPR applies even to micro-enterprises -- maintain a simplified processing register
Start with a free tool during your setup process
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Frequently asked questions
Yes, combining is possible unless there is an exclusivity clause in your employment contract. Check your collective agreement. It is an excellent way to test the activity before going full-time.
The Carte G itself costs about 120€ (CCI fees). But the prerequisites are demanding: Bac+3 degree in real estate/law/economics, OR 10 years of experience (4 years with Bac). Plus the financial guarantee of 30,000€ minimum.
No, you can domicile your property management company at your home. Simply verify that your lease allows it (if renting) and that your municipality does not impose restrictions. Most companies operate without a dedicated office.
As a micro-enterprise, you are VAT-exempt under 36,800€ revenue. Beyond that, or if you voluntarily opt for VAT, you charge 20% but can deduct VAT on your purchases. For small companies, the exemption is often more advantageous.
Warning signs are: revenue approaching 60,000€/year, actual expenses exceeding the 50% flat-rate deduction, need for a partner, or liability risk becoming too great. Anticipate the transition 2-3 months before reaching the 77,700€ cap. Two consecutive years of exceeding triggers automatic switch to actual reporting.
Yes, since 2024 you must verify that each property has a town hall registration number and a compliant energy certificate (G-rated properties banned from January 2025, F from 2028, E from 2034). The 120-night cap for primary residences can be lowered to 90 nights in tight housing areas. You must also check condominium rules as condominiums can now prohibit tourist furnished rentals by simple majority vote.
Platforms like Airbnb and Booking automatically collect and remit tourist tax in most municipalities. You must still declare overnight stays to the town hall. For direct bookings (off-platform), the host collects the tax from the guest and remits it. Rates range from 0.20€ to 4€ per person per night depending on category and municipality.
SARL is ideal if you want to minimize social charges (~45% vs ~75% in SAS) and don't need great statutory flexibility. SAS is preferable if you don't pay yourself at the start (no contributions without salary), if you're targeting investors, or if you want to optimize through dividends (30% flat tax without social charges in SAS, versus SSI contributions in SARL if dividends exceed 10% of share capital).
Yes, regardless of your size. You collect personal data (guest identity, contact details, booking data, owner bank details). You must maintain a simplified processing register, inform people about data use, secure storage and define retention periods. The CNIL offers free templates for small businesses.
If you are subject to VAT (revenue > 36,800€ in services), yes. You bill cleaning with 20% VAT to the owner. If your cleaning provider is themselves a non-VAT registered sole proprietor, you cannot recover VAT on their invoice, which reduces your margin. If you are under the base exemption, you charge no VAT -- you mention 'VAT not applicable, article 293 B of the CGI' on your invoices.
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