VAT (PDV) on property rentals in Croatia.For property owners in Croatia who are not from this country and are renting out their apartments or houses, there are several administrative steps to follow. Even if this procedure might seem daunting at first, it's crucial to get all the necessary documents beforehand to ensure everything is set before the start of the tourist season.
In Croatia, the renting of apartments, rooms, or entire properties to tourists is governed by the VAT law. According to this regulation, anyone without permanent residence in Croatia and offers accommodations to both local and international tourists, must register at the relevant office in Zagreb for VAT purposes.
Before you start providing your services, it's also vital to apply for a tax identification number. For this, you need to fill out a form called "P-PDV", available in Croatian or English. After that, it's essential to properly categorize your property (more on categorization in the following article), upon which you'll receive a rental permit from the authorities. Croatian property owners have similar tax obligations, but the requirement to register only arises after reaching a specific annual income threshold.
Individuals from other countries also need to complete forms regarding their residency status in Croatia. Most of the information required typically comes from the tax authority of one's home country. It's very likely that you'll also need to provide a document confirming your tax residence.
Foreign property owners are obligated to submit a VAT declaration every month, regardless of whether they rented out the property in that period or not. This VAT statement has to be handed in by the 20th of the following month at the latest. Proper bookkeeping is also a must.
How much is VAT in Croatia on property rentalVAT on accommodation in Croatia is currently 13 percent. However, the Croatian government is already discussing changes from 2025.
Property in Croatia with minimal hassleAre you planning to use your Croatian home or apartment for holidays and rent it out for the rest of the year? Do you wish to avoid the administrative duties and hassles associated with renting? If you're thinking of buying a property in Croatia, a specialized agency can handle all operational and rental aspects, greatly simplifying the tax obligations. If you're contemplating a property investment in Croatia, get in touch with us. We're here to help and guide you through the whole process.
Links to documents and forms
VAT Registration Form (P-PDV)
VAT Declaration Form