Regardless of whether your property is located on the coast or in the quiet areas of the interior, there are certainly people looking for that kind of vacation. If you are ready to start renting your property to tourists, especially in the period when you do not plan to use it yourself, you need to obtain certain permits and solutions. In order for you to be able to start renting as quickly and simply as possible, below we have prepared a short guide that states everything you need to do before the first guests come to your property.
Who can rent real estate?
Every citizen of the Republic of Croatia, in the capacity of a natural person, as well as citizens of member states of the European Economic Area and Switzerland, can rent real estate for the accommodation of guests. Real estate rental is officially called a catering service in a household, and this includes accommodation services in a room, apartment and vacation house up to a maximum of 10 rooms, i.e. 20 beds. Likewise, accommodation services include a camp that can accommodate a maximum of 30 guests at the same time, and the landlord who provides accommodation services can also provide guests with breakfast services.
If you still don't have your ideal property for your vacation, but also for renting to tourists, take a look at what the specialized real estate agency in Dalmatia offers - Terra Dalmatica.
Solution for providing catering services in the household
What documentation is required to obtain a solution?
To obtain a solution for the provision of catering services, the renter must submit an application, available on the website of the respective county, and together with the application, it is necessary to submit:
• proof of citizenship (identity card, passport)
• proof of property ownership (for room, apartment or house) or land (for camp) In case you have inherited the real estate, then you prove your ownership with a valid decision on inheritance, and if you acquired it by donation, then you need to attach a certified contract on donating the real estate and the proposal for registration in your name that you submitted to the Municipal Court. If you are a co-owner of the property, then you need the written consent of the other co-owner to rent it.
In the event that you are neither the owner nor co-owner of the property, but it is owned by your spouse or common-law partner, life partner, direct relative or family member, then you must attach proof of property ownership, written consent of the owner and proof of a family relationship with the owner of the building.
If you have signed a lease agreement with the owner of the property, then you cannot rent it as a natural person, but you must register a trade or company that, based on the lease agreement, will perform the hospitality business of providing accommodation services as a business entity.
• evidence of the object's usability
An extract from the land register is sufficient proof of the usability of the object when it shows that the building is registered in the land register with a note that some of the proof of usability (e.g. use permit or Decision on the derived state).
• proof of paid administrative fee
• evidence of paid compensation for the cost of inspection .hr/clanci/sluzbeni/2016_01_9_241.html" target="_blank">Regulations on classification and categorization of facilities where catering services are provided in households. The Committee of the Administrative Department will determine by inspection whether your real estate meets the conditions for the type and category of the facility.
Don't forget to pay taxes!
Finally, anyone who rents out real estate to guests must submit to the competent office of the Tax Administration a request for entry in the register of income tax payers. When determining income from real estate rental, all fees received for rental are considered receipts.
If you are not liable for VAT and if you do not determine your income on the basis of business books, then the income tax is determined in a flat amount. Flat-rate income tax determined by a tax ruling by a branch of the Tax Administration is valid until the change in income acquisition, i.e., the adoption of a new ruling.
In addition to the sum of the annual flat-rate income tax and surtax, the tax ruling also determines the sum of the quarterly income tax and surtax, as well as its payment terms and the amount of the flat-rate tax per bed. A taxpayer who pays income tax in a lump sum is not required to keep business books, only turnover records.
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