Professional Owner
The professional owner engages in racehorse ownership as a regular, ongoing activity conducted with a profit motive.
In practice
- You entrust your horses to a trainer but remain actively involved in their career (entries, sporting directions, strategic decisions).
- The activity can be considered professional even if it is not your main occupation.
- The owner’s instructions for horse entries are a key indicator of professional status.
Tax regime :
- Race winnings and owner’s bonuses are taxed under the Non-Commercial Profits (BNC) professional category.
- A BNC declaration is mandatory (controlled declaration – Form 2035 recommended).
- Horses are considered fixed assets and can generally be depreciated over three years.
Losses and profits :
- Losses can be offset against the household’s global income.
- Profits are subject to income tax and social contributions.
Capital gains on horse sales :
- Capital gains fall under the professional capital gains regime.
- After five years of activity, full or partial exemptions may apply depending on revenue levels.
- Long-term capital gains may be exempt from social contributions under certain conditions.
VAT and charges :
- VAT registration is mandatory above the legal thresholds.
- It is possible to opt for VAT below the thresholds to recover VAT on expenses.
- Subject to social contributions and territorial economic contributions.
Need help?
Each situation is assessed on a case-by-case basis; we recommend consulting a tax advisor.
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