Tax obligations related to renting an apartment in Croatia

A number of obligations apply to property owners in Croatia who are foreign nationals and who rent out their own property. The whole process is not too complicated, it just takes a little time to get the necessary documents before the tourist season starts. The taxation of apartments, rooms and beds for tourists and travelers in Croatia is regulated by the VAT Act. According to this law, anyone who does not have a permanent or habitual residence in Croatia and who rents out rooms, beds, apartments or houses to foreign or domestic tourists and travelers is required to register for VAT in the city of Zagreb. At the same time, you must also apply for a tax identification number before providing the first service. In both cases, this "P-PDV" form must be filled out. It can be downloaded in English and Croatian. According to the classification of the property (apartment, house, etc.), the owner receives the rental permit. Croatian citizens are subject to similar VAT obligations, but they do not have to register immediately, only if the income reaches HRK 230,000. In addition, foreigners must fill in an additional declaration "Declaration of the status of the owner of the property who is not resident in Croatia ". The necessary information is mainly data from the tax administrator of the country of origin. It is also likely that you will need to confirm your tax liability. In addition, foreign property owners engaged in subletting must submit a monthly tax return, regardless of whether the property has been rented out or not (always on the 20th of the month). Bookkeeping is also mandatory.

Property in Croatia for own use and worry-free further rental

Would you like to use your own property in Croatia for a few weeks during the summer season (1 - 3 weeks/year) and rent it out during the rest of the year? Do you want to avoid problems related to the rental of the property and formal matters? In some resorts you can buy a property where a full service related to the rental is provided. This service is provided by the operator of the resort. Thanks to this, obligations arising from tax regulations are simpler. For more information, please contact us.