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Post by Martin on Apr 14, 2005 12:40:20 GMT 1
Hi I have been reading the thread regarding the best way to let your Croatian property. Obviously this has generated a lot of counter claims about which site gets the most traffic, bookings etc. Completely understandable and I would make positive claims for my own site, which I am working hard to make the UK’s Croatian villa directory market leader . However my concern is the lack of debate and the care that owners are taking with the aspect of licensing their property so that they can legally take rental bookings. Rental agencies here take peoples listings without informing them that to rent in Croatia without a licence to rent is illegal. Also private individuals buy properties and just let them out to their friends-without first licensing their houses. I have spoken with a lawyer in Croatia who says that there is potential in law to not only fine the actual owners but also to pursue the introducing rental website, be in based in Croatia or the UK. My concern is that this summer we have a high profile case where for example a British family go on holiday to Croatia and the tourist police fine them for not paying their tourist tax or for staying in an unlicensed property. Which the British media then get hold of and run a campaign that damages all of Croatia for all our business’s. (The most likely way to get caught is a jealous neighbour watching all your bookings arriving and deciding a quiet word with the tourist office is in order.Completely understandable and human nature the world over.) On my site I have some more background on this topic: www.croatia-holidayandhome.co.uk/rental-directory/rental-law.htmlIn summary I would say if you are letting your house out this summer either under your own steam or through an agency, and are not licensed get to know the facts so that you can make an informed decision. Best Wishes Martin Westby Website www.Croatia-HolidayandHome.co.ukThe site to visit for buying property or holidaying in Croatia info@Croatia-HolidayandHome.co.uk Telephone 0871 2881978 Fax 0870 1693701 From outside the UK: Telephone 0044 1202 259155 Fax 0044 870 1693701
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Post by nikh on Dec 5, 2005 13:54:40 GMT 1
Hi! Martin I just found this thread . I have dumped a number of clients becasue of their stupidity nad recklessness. some people just wont listen or read the law or ask the pros in regards to this situation. They seem to think the neighbour down the road knows it all. I had a belly full of these clients and got rid of them. people like this cause trouble for everone who has purchased as bad press can damage investments. Friends staying in your apt and only immediate family can stay, not your brother and his wife or your cousin, immediate family only, this makes you a landlord end of story therefore you must have a licence even if no money has passed hands. As you are a tax resident if you own property you are flagged if the inspectors visit and visit they will as it is revenue for them .
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Post by davidzg on Dec 5, 2005 15:15:01 GMT 1
Hi! Martin I just found this thread . I have dumped a number of clients becasue of their stupidity nad recklessness. some people just wont listen or read the law or ask the pros in regards to this situation. They seem to think the neighbour down the road knows it all. I had a belly full of these clients and got rid of them. people like this cause trouble for everone who has purchased as bad press can damage investments. Friends staying in your apt and only immediate family can stay, not your brother and his wife or your cousin, immediate family only, this makes you a landlord end of story therefore you must have a licence even if no money has passed hands. As you are a tax resident if you own property you are flagged if the inspectors visit and visit they will as it is revenue for them . wtf, my friends are not allowed to stay in my house in Croatia for free? That is breaking the law? Lock me up now m'laud.
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Post by nikh on Dec 5, 2005 15:32:14 GMT 1
A little know fact my friend read it and weep. Good news is youre not alone.Bad news is they are checking I got it last summer, got away with a warning andhelp from a Croatian friend if you know what I mean, owners On Brac fined 10000 for same. Take this seriously especially if you are waiting for mfa. remember this is revenue for them so they gonna check and your neighbours might get a little jealous or just for fun, dob you in.
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Post by mambo on Dec 6, 2005 14:00:10 GMT 1
Nice one happened to my landlord this summer. I have rented long term and everything is official (contract, notary etc), so on my side no problem. He is living in Switzerland, did not report anything, but the tax office found him and served him a fine. Took them a year to figure it out, but eventually they will find out. This time the tax office found out because they simply checked our contract with his tax papers.
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Post by nikh on Dec 6, 2005 14:57:26 GMT 1
The new fangled computers are speeding up the process as they are all cross linked now. Supetar dont know themselves, real easy to find everyone now. Loads of money out there to be collected !!!!!!
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Post by Carol on Dec 6, 2005 22:03:44 GMT 1
Is the message here that you can't even have your friends come to visit you without getting some kind of permit?! I know they have to pay a tourist tax which is a bit of a nuisance, but I thought that was the only thing. Have i just got the wrong end of the stick?
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Post by loneranger on Dec 14, 2005 22:23:04 GMT 1
Quinne, Like you, I am baffled by the fact that people are putting the wind up about having friends to stay - or even letting them stay when you aren't there. As long as money doesn't exchange hands, who can stop it. I think you're right that all visitors must pay a tourist tax, which is something that has to be done, but they can't stop friends or family staying. CAN THEY??!
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Post by nikh on Dec 20, 2005 12:44:07 GMT 1
By not researching the law and its interpretaions you leave yourselves and the market open to instabilty,nobody is putting the wind up anybody, nobody has to listen to me either,check out the tourist act and local interpretation of said act if you dont believe it. If you want to avoid prosecution you should do your research or ignore it, up to you. Someone outside your family staying in your apt makes you a landlord you must collect tt and pay it for these guests paying or not. You are tax resident under the law and now you have rented your apt out even though you havent , therefore you must pay tax on the amount you might have earned at local market rate , To do all of this you must have a licence but you cant get one if you are a private purchaser only through a company. .each locale may have a different interpretation. If you bought as a company its different.Also the systems are becoming linked by these new fangled things called computers making it easier to detect and collect much needed revenue.
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Post by odo on Dec 23, 2005 14:04:57 GMT 1
you sound like you work for the government. This is just more unnecessary red tape that will deter the tourist sector from flourishing. That would get the government more revenue in the end - if more tourists came in and prices were allowed to reach there supply and demand equilibrium. What other country could come up with such BIG BROTHER style inspectorate relying on snoopy neighbours. Same old communists.
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Post by nikh on Dec 24, 2005 12:48:33 GMT 1
I agree with you , but it doesnt change the fact.
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Post by odo on Dec 24, 2005 13:03:46 GMT 1
yeah I know one of them! They are the untouchables!
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Post by valj on Jan 5, 2006 18:17:21 GMT 1
I have just had Martin Westby's new up to date guide on Foreign owners renting out in Croatia - it is extremely helpful and details all the pros and cons of buying property to rent out as a Company or Private and how to obtain a rental licence etc - a must read item!! We only knew the basics about renting our spare apartment in Korcula but now we have all the full facts instead of "odd bits here and there!" He can be contacted on www.croatia-holidayandhome.co.ukHe will e-mail you the new guide and should you have any queries I am sure he will help.
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Post by AlisonKeefe on Jan 6, 2006 18:02:16 GMT 1
What Martin writes hits the nail on the head for us owners and renters in general. If someone on a personal level wants to take the risk and rent or have friends stay without a license then this is their gamble. But, if court action is taken against the owner or the guests are evicted and this is featured in the papers then this is serious for us all. Most of us bought with a view to capital growth plus rental income. Both of these would be adversely affected by negative reporting by the media.
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Post by Nicola on Jan 7, 2006 12:00:19 GMT 1
Does any EU country threaten to fine you if you have friends to stay in your holiday home without a licence?
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