Private accommodation providers—citizens of Croatia—taxation
Tax status and business conditions
As an individual accommodation provider (offering rooms, apartments, holiday homes, campsites, or Robinson-style accommodation), the provider can operate without opening a business or company, provided that he or she has no more than 10 rooms (20 beds) or 10 accommodation units/30 guests in a camp or Robinson facility. The key tax threshold is 60,000.00 euros of annual income—if this amount is not exceeded, the provider may choose flat-rate income taxation and does not enter into the VAT system. If the income exceeds the threshold, the provider becomes liable for VAT and is required to keep business accounts.
Flat-rate taxation and procedures
To apply the flat-rate system, the provider must register within 8 days of approval or any change. The flat-rate tax amount is determined by the local government unit according to the tourism development index. The tax is paid quarterly, and the annual amount varies depending on the municipality’s category. The flat amount is determined per bed, per campsite unit, or per Robinson unit. If the provider changes the number of accommodation capacities during the year, the tax amount is adjusted proportionally.
Issuing invoices and recordkeeping
The provider must issue an invoice for every service rendered and keep a sales log (EP Form). Business ledgers do not need to be kept unless the provider becomes a VAT payer or voluntarily switches to keeping accounts as a self-employed activity.
Operations via agencies
If services are provided through agencies (tourist platforms and agencies), the manner of issuing invoices and fiscalization depends on the contract and the agency’s status. Flat-rate providers are not required to use the fiscalization system, but the invoice must always contain all legally required details.
Tourist tax and membership fees
For each bed or accommodation unit, the provider pays an annual flat-rate tourist tax, with the amount set by the county or city. The annual turnover is reported by January 15 using the TZ 2 Form. The provider is also obligated to pay the annual membership fee to the local tourist board according to the total capacity.
Real estate tax
From 2025, the provider may be subject to property tax, with the amount and obligation determined by the local government unit and based on the usable area of the property. An exception applies to properties used as the provider’s permanent residence.
