Financial Obligations For Private Renters -2021
accommodation in a room, apartment or holiday house, owned by the renter, with a maximum of 10 rooms / 20 beds (not counting camp-beds)
accommodation in a campsite on land owned by the renter, consisting of a maximum of 10 units, for 30 guests at a time (not counting children under the age of 12)
offering breakfast, half-board or full board to guests staying in the renter’s room, apartment or holiday house
Taking it in order, what do private renters have to pay? 1. A flat-rate tourist levy 2. A flat-rate renters’ tax 3. The Tourist Board membership fee 4. Value-Added-Tax (PDV) on any fees paid to foreign agenciesNote: Private renters are also responsible for ensuring that their guests pay the Visitor’s Levy, either by including the charge in the rental fee, or by explaining to the guests what the charge is and how it should be paid.
This levy is paid according to the Law on the Tourist Levy passed in 2019. In this law, ‘tourist levy’ replaced the previous ‘levy-per-stay’, and the main changes were that the levy is calculated per bed and camp-bed in apartments and holiday houses, and that settlements were no longer classified according to different tourist categories.
(The categories were defined as a coefficient which assigned a value to every location in the region. For instance seaside locations would be rated at a higher level than inland villages. The system required every renter to find out which category applied to his or her property. It has now been dropped from these payment calculations.)
The Tourist Levy is defined for every renter on the evisitor website. The finance section tells the renter what their current standing is, how much there is to pay, and whether there is any outstanding debt. In 2020, the Law was updated to include camp-beds in the Tourist Levy calculation if they are listed in the renter’s Categorization Certificates. If the main Categorization Certificate states in the first part of the document that there are camp-beds on the property, the Tourist Levy is applied to them, but not if they are included only in the explanatory supplement (obrazloženje), which is to be found at the end of the Categorization document. This information forms the basis on which the amount payable for the Tourist Levy is calculated.
The actual amount is set by the authorities in each County; Hvar is in the Split-Dalmatian County.
Now that tourism categories for each place no longer exist, the formula for calculating the Tourist Levy is based solely on the County authority’s decision as to the basic level of the levy and the number of beds in the tourist accommodation. In 2021, the County authority, taking into account the opinion of the local tourist boards, decreed that the basic Tourist Levy for all towns and council areas should be in a range between 350 and 1,000 kn. This is in accordance with the Directive which set out the highest and lowest acceptable amounts.
In the Jelsa Council region, the basic level for rooms, apartments and holiday homes in 2021 is 350 kn, the lowest possible, so the total annual fee payable is 350 kn multiplied by the number of beds in the accommodation (including camp-beds if they are listed in the initial statement of the Categorization Certificate).TOURIST LEVIES FOR DIFFERENT TYPES OF ACCOMMODATION, 2021.
|FOR A HOUSE OR APARTMENT (per bed)||FOR A FAMILY FARM (per bed)||FOR A CAMP (for each rental space)||FOR A CAMP ON A FAMILY FARM (for each rental space)|
The Levy is payable to the local Tourist Board account, in three instalments, the first by 31st July, the second by 31st August and the last by 30th September. The payment slips can be obtained from the local Tourist Board office, or from the evisitor website. Payment can be made at a bank, via internet banking, or at a post office.
2. The flat-rate tax for private renters
The basis for the tax varies between the different council and town authorities, as it depends on the Tourist Levy in each place. Camp-beds are not included in the calculation. The tax is the same, whether the premises are full or empty, and regardless of the number of days in the year they are rented out. The calculation method is standardized. In the Jelsa Council region it is as follows: (number of beds x 350,00 kn) + 10% surcharge (prirez) = the flat-rate annual tax
The renters’ tax is payable to the account of the local tax authority where the renter resides (which is not necessarily where the rental property is), and is paid quarterly according to the payment demand issued by the local Tax authority. In order to receive the demand, the renter has to have a valid Certificate confirming the registration of the private rental business, and has to be entered on the Taxpayers’ Register (Registar poreznih obveznika, RPO).
The deadlines for paying the annual flat-rate tax on rental income and the surcharge on income from private hospitality services are as follows: • 1st quarter, no later than 31st March • 2nd quarter by 30th June • 3rd quarter by 30th September • final payment by 31st December.Payments can be made at a bank, via internet banking, or at a post office.
Note: as from next year (2022), the renters’ tax will be payable to the tax authority where the rental property is, and not in the renter’s place of residence.
3. Tourist Board Membership Fee
This fee is payable to the Tourist Board. It is calculated according to the number of beds in the rental property in the preceding year, as confirmed by the certificate issued by the competent authority. So in 2021, the renter is paying according to the number of beds on offer in 2020, regardless of any changes made in the current year.
Previously, the fee was calculated according to earnings in the previous year. Although this is no longer the case, the renter is still obliged to complete the form TZ2 ( Obrazac TZ – 2 ) on the basis of the business record ( Evidencija o prometu ). The whole of last year’s earnings should be entered, and the form should be passed to the renter’s tax office (this year, at the renter’s place of residence, if different from the location of the rental property). This is for the purpose of providing details of the total earnings from Croatia’s private renters, for the tax authorities’ records.
A payment slip for the Tourist Board Membership Fee is not sent out, the renter has to obtain it from the local Tourist Board office. The fee payable this year (for last year’s bed availability in 2020) is 45 kn for each fixed bed, 22.50 kn per camp-bed. It can be paid in full upfront no later than 31st July, or in three instalments, by 31st July, 31st August and 30th September.Payments can be made at a bank, via internet banking, or at a post office. Note: Exceptionally, last year’s (2020.) charges based on the number of beds were reduced by 50 % for fixed beds, with no charge for camp-beds.
4. Value-Added Tax (PDV) on commission paid to foreign agencies
If you use the services of any foreign agent, agency or firm situated within the European Union, you have to calculate and pay Value-Added-Tax for their services. For example, if you use Booking.com you have to pay VAT at 25% on the amount of the fee which they keep, according to their account statements. The VAT is payable for each month by the 20th of the following month. You can obtain a payment slip from the Jelsa Tourist Board office, either in person or by email: email@example.com. The payment is made to the tax authorities according to the details on the payment slip, and can be made at a bank, via internet banking, or at a post office.