Physical person – non-residents who have apartments and holiday houses in the Republic of Croatia can obtain a rental permit and from tax, the perspective may be considered as renters. Their tax status in Croatia and tax status of provided services depends on the fact whether they are from EU Member State or they are national of a third country.
Renters who are nationals of other EU Member States can provide accommodation services in Croatia without establishing a craft or a company. However, in accordance with Article 90, paragraph 1 of VAT Law they should be registered for VAT purposes if the service is provided directly to physical persons. The request for VAT registration should be submitted to the Tax Authorities no later than 15 days before the start of providing services.
Renters who are third-country nationals (regardless whether the service is provided to a physical person or a taxpayer) are obliged to establish a craft of a company in order to provide the service. Taking into consideration the obligation for the establishment of craft or a company, for renters who are third county nationals the threshold the same as for small taxpayers is applied. This means that they are not obliged to register for VAT purposes until their annual turnover exceeds HRK 300.000,00 threshold.