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The long-awaited property tax is coming into effect this year. After last year this topic was in the public focus during the amendments to the Local Tax Act, which included property tax, the topic is relevant again because by March 31, the competent tax authorities are collecting data on properties based on which the new tax will soon be collected.
Many questions remain open, and property owners are often unsure what they need to do and who to contact. Among them are private hosts, who are confused by certain provisions of the law, especially those concerning possible exemptions from paying the tax. Below is an overview of everything hosts need to know about property tax.
Do hosts also have to pay property tax?
Yes, unless the rental unit you offer is at the same address where you have your residence and you have the status of a host.
Amendments to the Hospitality Act have also come into effect, according to which hosts are now divided into two categories: hosts and landlords.
Persons with registered residence in the county where the property providing accommodation services is located are considered hosts, while all others are landlords.
According to the Local Tax Act, properties used by the host for permanent residence are exempt from property tax.
In other words, if you rent a room or apartment in a family house where you also live, you do not pay property tax.
All other landlords are required to pay property tax. This tax also replaces the previous holiday home tax.
How much is the property tax?
Unlike the previous holiday home tax, which municipalities could but did not have to impose, property tax is mandatory.
The tax rate is determined by municipalities and cities, ranging from €0.60 to €8.00 per m² of usable property area, and is paid annually.
Municipalities and cities had a deadline of February 28, 2025, to decide the tax rate. If no decision is made, by law the rate of €0.60 per m² applies.
You can easily check what the tax will be in your city or municipality using our informative Property Tax Calculator for Private Hosts.
Who does not pay property tax?
Property tax is not paid for properties that:
- are used for permanent residence (the taxpayer proves permanent residence to the tax authority upon request)
- are rented under a contract for permanent residence (at least 10 months)
- are public or intended for institutional housing
- are recorded in company books as properties intended for sale, if less than six months have passed since entry
- were acquired in exchange for unpaid claims, if less than six months have passed since acquisition
- are uninhabitable due to natural disasters
- cannot be used for residential purposes under all circumstances
- are owned by local government units in the same area
- serve the host for permanent residence
- are owned by persons considered socially vulnerable by municipal decisions
Do I need to contact anyone and what to submit?
For each municipality or city, it is determined which authority is responsible for collecting property tax. In some areas, this is done by the municipalities themselves, while elsewhere it is entrusted to the Tax Administration.
If you paid holiday home tax last year, you do not need to contact anyone – you are already in the database.
It is also not necessary to submit data for properties for which communal fees are already paid.
You should contact the competent authority if there has been a change in property use or if you believe the existing data is incorrect (e.g., incorrect square footage). If the property is tax-exempt, appropriate proof must be provided.
If the Tax Administration is competent for your municipality or city, you can submit the data via the eTax system or the official form available on the Tax Administration website.
If the Tax Administration does not perform this task, you need to inquire at the municipality or city about how to submit the data.
When to expect payment slips?
Due to the large volume of data collection and processing, payment slips are not expected immediately. The deadline for data submission is March 31, after which processing follows.
It is realistic to expect that payment slips will start arriving in a few months, and according to Tax Administration announcements, possibly only at the end of the year, during September or October.
Summary – what hosts need to know about property tax?
- If you have host status and rent accommodation in a property where you also live, you do not pay property tax.
- If you own accommodation outside your place of residence, you pay tax according to the rate determined by the municipality or city.
- If you want to check data about your property (e.g., square footage), contact the competent municipality or city.
- The deadline for submitting property data is March 31.
- Data submission is not required if communal fees are already paid for the property.
