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Are you a new private host and wondering what you need to fulfil so that your business operates in accordance with the law? Or perhaps you have already been renting for many years, but due to increasingly frequent changes to laws and regulations related to renting, you are not sure whether you are meeting all your obligations. Do not worry, below we bring you an overview of all legal obligations for hosts in 2023 and guide you step by step on how to fulfil them.
First step – obtaining the decision for providing hospitality services in a household
To become a host, it is necessary to obtain a decision from the competent authority approving the provision of hospitality services in a household. Depending on what category level you want, that is, how many stars you want to have, and what type of accommodation you have, whether it is an apartment, holiday home, studio apartment or room, you need to meet certain conditions prescribed for each individual category.
On the website of the Ministry of Tourism and Sports, in the Tourism Regulations category (https://mints.gov.hr/pristup-informacijama/propisi/propisi-iz-turizma/107), you can find all regulations on the criteria for each type of accommodation, including an overview of the criteria for a specific number of stars.
After obtaining the decision, it is necessary to contact the competent tourist board, that is, the one in whose area the accommodation property is located. It then provides the host with access data for using the eVisitor system, which is used for guest registration, keeping guest records, and monitoring the host’s financial obligations.
And now that you have become a private host, what comes next?
Financial obligations of hosts
Private hosts operating as natural persons, which does not apply to trades and companies, are obliged to pay tourist tax, membership fees to tourist boards, and flat-rate income tax.
Tourist tax
Tourist tax is paid in three equal amounts, that is, instalments, on the following dates: 31 July for the first instalment, 31 August for the second instalment, and 30 September for the third instalment.
The amount of tourist tax depends on the amount per bed determined by the county assembly for each municipality and town in its area, as well as on the number of registered beds in the property. According to the Regulation on the minimum and maximum amount of tourist tax, the minimum tax amount may be HRK 350.00 or EUR 46.45 per bed annually, and the maximum HRK 1,000.00 or EUR 132.72 per bed annually.
This includes both permanent and extra beds, in the number defined in the categorization decision. Although many tourist boards send payment slips to hosts for tourist tax payment, they are not obliged to do so, and hosts download the payment slips themselves from the eVisitor system, in the Finance category.
Membership fees to tourist boards
Membership fees to tourist boards used to depend on the tourist class of the place where the property is located and on the turnover achieved in the previous year, but with the adoption of the new Act on Membership Fees in Tourist Boards, this financial obligation is now also paid in a flat-rate form, which depends exclusively on the number of beds in the property and the defined fee amount.
The membership fee is HRK 45.00 or EUR 5.97 per permanent bed annually, and half that amount, HRK 22.50 or EUR 2.99, per extra bed annually. These amounts, just like tourist tax, are paid in three equal instalments with the same deadlines: 31 July, 31 August, and 30 September.
However, regarding the obligation to pay the membership fee, it is important for hosts to know that by 15 January of the current year they are obliged to submit a completed TZ2 Form to the competent Tax Administration office according to the host’s place of residence, stating, among other things, the number of beds, on the basis of which the membership fee liability is later created.
The TZ2 Form is available for download on the Tax Administration website, and if you need help filling it in, you can certainly contact your tourist board as well. Payment data for the membership fee are also available to hosts in the eVisitor system, and it is important to know that neither the Tax Administration, which is responsible for recording membership fee payments, nor the tourist board send any payment slips for this financial obligation, so the host must keep track of it independently.
Annual flat-rate income tax
Annual flat-rate income tax depends on the decision of the local self-government unit, that is, the municipality or town, which may define the annual flat-rate income tax obligation for all settlements within its boundaries.
Based on that decision, the Tax Administration sends hosts, at the beginning of each year, a decision in which the total amount of income tax is divided into four equal instalments, with due dates every three months.
Additional advice: when paying the above obligations, keep in mind that each of them is paid to a different IBAN account and that the recipients are different. It is necessary to pay attention to the correctly entered payment model and reference number, because otherwise payments will not be booked correctly and, although you have paid something, it may still appear as if you have an outstanding debt. You will find the exact data for tourist tax and membership fees in eVisitor or by contacting your tourist board, while the payment data for income tax will be stated in the decision sent to you by the Tax Administration.
Non-financial obligations of hosts
For the business to be in compliance with the law, hosts, in addition to the financial obligations listed above, have several additional obligations.
Standardized signboard
The host is obliged to visibly display a standardized signboard with the number of stars of the property at the main entrance of the property. The appearance of the signboard is strictly prescribed, and the website of the Ministry of Tourism and Sports contains a list of authorized signboard manufacturers.
Guest registration
The host is obliged to register every guest within 24 hours in the eVisitor system, based on a personal identification document. All persons staying in the property must be registered, including small children, babies, and Croatian citizens, and care must be taken that the number of guests does not exceed the number of beds defined in the decision.
Guest list
It is necessary to keep a guest list for each accommodation unit. Although this list used to be kept separately, since the establishment of eVisitor, the guest list can also be kept through that system. Each registration is visible in the Tourist List, which can also serve as the guest list.
Price list
Inside each property, it is mandatory to have a clearly displayed price list, and the prices on the invoice issued to the guest must always correspond to the prices in the official price list. The price list may be changed, but it is necessary to keep all previous versions of the price list.
Of course, if you want to reduce the amount for a guest, discounts may be granted, and different prices for accommodation services may also be defined depending on the season.
Issuing invoices and keeping a turnover record
The host is obliged to issue the guest an invoice stating the type of service, quantity, and price. If the host pays tourist tax as a flat rate, this item must not be charged additionally, but it should be stated on the invoice that the tourist tax is included in the price.
All issued invoices must be entered into the Turnover Record, which can be kept using the Turnover Record book, the EP form, or the eVisitor system, in the Finance – Turnover section.
Notice on filing complaints
In a visible place in the property, it is necessary to place a notice on the method of filing complaints, stating how a possible guest complaint is submitted and how and within what period it will be answered.
First aid
First aid supplies must be provided in an accessible place in the property.
Evacuation plan
Each accommodation unit must have an evacuation plan visibly displayed in the property.
What else is desirable to have in the property?
In addition to all of the above, it is advisable to have in the property a notice on the collection of guests’ personal data, stating the purpose of collecting such data, that is, for registration in the eVisitor system and fulfilment of the host’s legal obligations. The Croatian Tourist Board has prepared multilingual instructions on this, so you can request them from your tourist board as well.
It is also advisable to have house rules in the property, where you will define certain rules of conduct within the accommodation unit. An example of house rules can also be found online or requested from your tourist board.
Conclusion
Although at first glance the obligations of hosts may seem numerous and complex, once you set the foundations and prepare everything needed, you will actually be able to fulfil everything expected of you quite easily.
Over the past few years, there have been many amendments to laws and regulations in the field of tourism, followed by changes due to the COVID-19 pandemic, so hosts are still confused about what they have to pay and in what amounts. You will find most information easily in eVisitor, and you can always contact your tourist board if something needs additional clarification.
