Are you interested in renting out property in Croatia?
Keep one thing in mind: it isn’t enough to just publish your listing online and that’s that – inform yourselves about the paperwork, tourism trends and the costs coming your way.
Whether you are planning to buy a real estate or if it’s already in your property, the next step is always the same: figure out what you wish to accomplish by renting out. How much do you want to earn? Enough to cover your costs or even more?
Once you have answered these questions, you are just a few more steps away from becoming a real estate renter.
Check out the market situation
What is on offer? What kind of property is desirable? Which kind of interior design should you choose?
Check the cost of rental on the market and go through the numbers: costs, investments and earnings. Tourism is a fickle thing – what is popular today, tomorrow may not be. The same goes for tourist destinations.
Secure a Solution on Offering Hospitality Services
You can get it at the local county administration office for tourism. You can download the documentation and minimum requirements from the administration office websites, or you can contact the agencies specialising in such services.
Submit a categorization request to the local State Administration Office (tourism section). There you will get all the information about the documents that you need to enclose to the request, as well as the information about property categorization.
Standardized plate for renters
It is a legal requirement to place a standardized plate on the entrance to the apartment or other rental property. These plates are ordered after the categorization procedure is complete, and you can get them from manufacturers that have an authorisation of the Ministry. The manufacturer will require the following:
- a payment confirmation copy
- categorization solution copy
- delivery address
You can order the plate only after you have completed the categorisation procedure.
Visit to the local Tourist Information Office
In there, you will receive the login information for e-Visitor online platform, through which you can check in your guests. Bring with you a Solution on Offering Hospitality Services (rental license/categorization).
Check in your guests at least 24 hours after their arrival and check them out 24 hours after their departure.
Check-in goes through:
- the internet (you will get more information at the Tourist Information Office)
- the agency you work with
You have to exhibit the official price list in every room/apartment/holiday home, containing the following information:
- basic information (name, first and last name of the property owner, address and personal identification number)
- service (overnight stay, accommodation, bed and breakfast…)
- type of charging (per night, per person, per accommodation, per week…)
- date (enter different seasons)
- price (listed in kunas/HRK)
- sojourn tax (list amounts per seasons, mention if it is included in the price)
- VAT (note if the tax is included in the price, depending on the renter being in VAT system)
- additional services (pets, air conditioning, cleaning, breakfast, parking), if charged
- valid from date (list the date from which this price list is valid)
- signature (there is no need to notarise the price list, it is enough to just sign it).
Invoices and receipts
The property owner has to to provide each guest (or agency) with a receipt for each service and keep its copy. Some agencies will create receipts for those renters that aren’t in the VAT system.
Book of guests
Renting your property means you need to keep track of all the guests you receive, i.e., those that have stayed at your property (both Croatian and foreign).
If you have a contract with an agency, they can do it for you. However, if you work with several agencies, keep your own book of guests in which you will keep receipts from different agencies.
For rental providers, there is a flat rate for sojourn tax (sojourn tax per night) and the membership fee to the Tourist Office.
The Tourist Office will send you the bills for sojourn tax, and you will find them online at e-Visitor. Keep in mind that the Tourist Office no longer sends out physical bills.
The annual amount depends on the number of beds and additional beds, as well as the rank of the tourist destination you’re located in.
You can pay the bill yearly (the deadline is 15th of January for the current year). Report the calculations to the local Tax Office, and pay the bill to the local Tourist Office – both depending on the location of the property.
There is also flat rate for VAT for renters that aren’t in the VAT system. The Tax Office will send you a notice on the VAT you are required to pay after your property has been categorized. Watch out for this, because you will get no physical bills, so you may easily forget about it!
What are the rules for foreign citizens coming from EU member states that wish to rent out a property in Croatia?
- They can make a categorisation and rent out property. Registry into the VAT system is automatic.
- They must report to the Tax Office to get their VAT number.
- Sojourn tax is paid flat rate.
- Accommodation tax, amounting to 13%, is paid on their own (or by their accountant).
Cooperation with agencies
Lastly, renters that receive a service from an international business (such as booking.com or Airbnb) need to pay provision VAT payment. It is not mentioned on the receipt, and the renter should calculate it on their own and declare it to the local Tax Office (get a FINA certificate or hire an accountant).
Local renters are therefore better off working with a local tourist agency, since they are the ones who will pay this VAT.
What can we at Solis Poreč do for you?
- Give you advice on property rental.
- Request a solution on offering accommodation services/categorization.
- Make a price list and consult with you on the prices.
- Be your liaison on property rental.
- Present your property on renowned websites, through our partners and on our website.
- Provide you with professional photography services.
- Make receipts for your guests.
- Make receipts for private renters that aren’t in the VAT system.
- Check in your guests (online or manually).
- Organise a contactless entrance and exit from your property.
- Perform check-in and check-out services on your property.
- Calculate the price of accommodation for the bank.
- Offer reception services for your guests.
Are you ready to rent out? Contact us and let’s make an arrangement! We will provide you with everything you need, so you can remain carefree and without any concerns!