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Post by crojoe on Apr 10, 2009 12:38:00 GMT 1
I'm not trying to be funny here, but is it true that as a private renter on the coast you can only have up to 15 guests per year? Also, there is a rental form in Croatian one can purchase for renting out their property, and you could in respect say you are donating the use of the property to your "friend" for a set period. It would need to be notorised. Just make sure "friends" register with local police.
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Post by nikh on Apr 10, 2009 13:27:02 GMT 1
polako you and your immediate family are not considered part of the 15, You must draw up a list of people you intend to let stay in your property when you are not there. Thats not hard if you know in advance who is going to use your property from extended family and friends . If you are in the property with friends they are considered to be non rental and not part of the list as clearly you are not renting when you are sharing. The 15 pay tourist tax as do you and your family and bring the list with them which has been notarised to show they are part of an allowed group. the list stays in the property. Prior to th season you or your rep brings this list to tourist office and to inspector so they are awar e you have one. It was introduced to facilitate foreigners and is still under interpretaion locally. Therefore your rep should go directly to the tourist office and inspector to make sure that they have done it correctly. Regarding being restricted to the number of guests , you are not, you are restricted to commercial renting recieving an income and avoidance of tax both locally and at Governmental level. Whether you mean to or not.You all need OIBs. Contrary to earlier posts it is possible to get this without being present. It is being done by a Split based Company for real estate sales to be completed . So i can say this with absolute assurance. You must hand you r property to a company to rent commercially that is qualified for this work and knows the law and tax obligations, if you are a private owner, you cannot rent your property touristically, if it is residentail unless its a long term let. The biggest problem is the in advance tax payment but the rest is straight forward and you r local rep should be able to help with the touristic offices and templates.
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Post by nikh on Apr 10, 2009 13:28:59 GMT 1
ps if you want to take the chance of getting into a real mess you can do the donation thing, wouldnt recommend it unless it has been checked and approved by local authority
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Post by Bron on Jul 3, 2009 20:37:44 GMT 1
Hello everyone
Just wondering if by any chance there is any update/solution yet to this categorisation problem?
Are we really going to have to wait until Croatia gets into the EU?!
Our house is stitting empty for the past year....we are unable to rent it out and we're unable to sell. It is a very frustrating situation.
Regards
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pips
Junior Member
[M0:0]
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Post by pips on Jul 3, 2009 21:10:12 GMT 1
Same here, i know this sounds silly but can you rent to 15 'friends' & once you have their names documented & they register with the local tourist office then all is fine?
I though progress was being made with non croatian property owners renting out, would this really look good for CRO joing EU if they did all those negative things to your holiday home just because you want to rent it out as you were informed when you bought in 2005
Never would have purchased there if I has know the real story
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Post by propertymanagement on Jul 3, 2009 21:46:40 GMT 1
I agree the Croatian legislation is quite complicated, but everyone who wants to rent the apartment/house legally, there is a way to do it.
It is true that you can't rent it legally as a private renter, but you can open "obrt" and rent it through your "obrt". Obrt is similar to company, but much easier to maintain and cheaper. Even the Croatian person needs to open "obrt" to be able to rent it legally. Once the "obrt" is established, you can get a categorisation, which isn't complicated at all .... some documents need to be delivered and that's it.
The biggest problem is if your property is registered as a residential object within your building permit. If it says "za stanovanje", then you can't get the rental licence ... in this case, you will need to change the term "za stanovanje" into something else .... this is I believe way more complicated and I wouldn't know what is the exact procedure for this.
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Post by maslina on Jul 4, 2009 3:03:43 GMT 1
just want to commiserate. i don't have any advice. i had no idea such a law was reenacted until now. considering that croatia is on the brink of economic catastrophe, this is a law that should be changed right now! what has to happen in croatia before people actually get off their rumps and fight for their a way of life that is just and sensible. croatia, croatia, get it together.
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Post by upthevilla on Jul 4, 2009 13:17:41 GMT 1
Hello everyone Just wondering if by any chance there is any update/solution yet to this categorisation problem? Im sorry to say that there is no news, no update and still NO solution.
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Post by happy on Jul 4, 2009 15:45:13 GMT 1
Hello everyone Just wondering if by any chance there is any update/solution yet to this categorisation problem? Im sorry to say that there is no news, no update and still NO solution. 'The Mediterranean as it once was' And always will be!
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Post by Bron on Jul 11, 2009 19:16:27 GMT 1
Thanks everyone for your help and support....It really is an unbelievable situation and unfortunately, no end in sight. Is there anything that we can do.....or do we just continue to live in hope!?
The house is registered as residential on the usage permit. Is there any way to get the house classified as a business on the usage permit, then I believe we would be okay to proceed with categorisation? Does anyone know if this can be done?
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Post by bheywood on Aug 4, 2009 12:26:12 GMT 1
I fully sympathise with everyone on this thread, having been at my wit's end over a an identical situation late last year. Although I recognise that not every solution is viable for everybody, the route I went down worked for me, and I now have a fully categorised holiday house (which I own as a private individual, not a company, residential, not business). It took a few months to organise and cost about 1200 Euros (as well as an ongoing percentage). If anyone would like details of who I used, please PM me.
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em
Junior Member
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Post by em on Aug 10, 2009 12:38:43 GMT 1
We are currently caught in this trap. When we bought our house we were assured (as WAS the case) that we would be able to rent it out. Inevitably the house was not completed on schedule and now it is the rules have changed! We are desperate to find a solution but as with many problems aired on this forum, it seems everyone has a different answer. We bought our house through a company (whose business was stated as 'house rental'!) and it has residential planning permission which I know currently precludes us from renting it out.
I would be very interested to know more about the route you took, bheywood. Our house is in Istria, in case that makes any difference (not in tourist zone). Any one else got more news / other suggestions?
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Post by nikh on Oct 11, 2009 16:06:50 GMT 1
contact info@pioneerpropertiescroatia.com they are currently recategorising properties for licencing. Just to make something clear. Your agent wanted to sell you a property so they didnt actually care or bother to find out about this old law. They reinforced it as they expected entry to the Eu before now and at that point the rental wwill be the same as the Croatian citizens. They will not change anything so you will need to rely on recategorisation and capital appreciation on the property for now. This week we received news regarding some small changes. For example previously if you sold your property and it had a licence under the old law the new buyer would not be able to use the licencing as before. This has changed however as localities recently recieved their latest interpretations from their bosses.
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Post by pizzaandsalsa on Nov 4, 2009 19:49:46 GMT 1
Don't know if anybody has already posted this link. I found this information on another site and thought it might be of interest. www.croatia-holidayandhome.co.uk/blog/?p=101******************************** Croatia Categorisation Issue Consortium: In January 2009, Dr James B Waddell founded the Croatia Categorisation Issue Consortium (CCIC) to resolve the critical issue of the categorisation of residential properties (villas or apartments owned by foreigners as individuals or as an asset of a Croatian company) by the tourist authorities. The Categorisation Issue, which was created in November 2007 due to a change in interpretation of a planning law by the authorities, has entrapped without warning hundreds of foreign property owners across Croatia making it impossible for them to legally rent their property for short-term holiday rentals to tourist guests. The Consortium has members across Europe and the Rest of the World and has been lobbying the Croatian authorities through the Republic of Croatia Embassy in London and directly with the respective Ministry of Tourism and the Ministry of Environmental Protection, Physical Planning and Construction for a fair resolution to the issue. James would like to hear from property owners and developers in Croatia who have been impacted by the Categorisation Issue with the approximate location of their property (Nearest Town and Region) and if they have had their property visited by an inspector and shut down. The purpose of this request is to build as complete a picture as possible of the scope and impact of the issue. Regular email CCIC updates are sent free to members and associates members of the consortium advising them on progress. Email: james@waddellj.freeserve.co.uk *******************************************
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Post by francis on Nov 27, 2009 22:05:46 GMT 1
Dear Oliver Grimley, Here is the long awaited reply from the Ministry for Environment Protection etc. – the scanned letter is at the bottom. How the wording of a law can mean two different things beats me, but I am not a politician or a civil servant so it is not surprising that I do not understand their dark art! I will wait to see if Bertie Ahern can deliver us all a big Christmas present. At the moment he is very busy on foreign engagements. Bertie has made his own investigations and seen for himself that the new interpretation of the law is discriminator against foreigners. Best wishes James REPUBLIC OF CROATIA MINISTRY FOR ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION 10000 Zagreb, Ulica Republike Austrije 20 Tel: 01/37 82-444 Fax: 01/37 72-822 Class: 361-01/09-01/51 Number: 531-01-09-5 Zagreb, October 16, 2009 ANA BLEČIĆ JELENOVIĆ 51 000 RIJEKA Frana Supila 11 RE: Attorneys Ana Blečić Jelenović and Anela Dizdarević from Rijeka, application – reply With respect to your application dated September 09, 2009, in which you have expressed your dissatisfaction with this Ministry's opinion Class: 361-01/09-01/51, Number: 531-01-09-3 from August 27, 2009, which we sent to you as a reply to your request from June 08, 2009, regarding the possibility to obtain categorization for performing business activity in the building having residential purpose, we wish to inform you that we stick to the previously given opinion, since your application is related to the same subject. Furthermore, we turn your attention to the fact that legal rights and interests of the parties are being decided upon only in procedures related to categorization, where these rights and interests are protected by procedural actions (proposals, declarations etc.) which are taken in that particular procedure, or outside that procedure, by appealing or submitting a claim to the Croatian Administration court, within the set time frames. Hence, each relevant fact related to obtaining the said categorization, as well as allegations stresses in your application, can be pointed out in the procedure of obtaining categorization. In case you are not satisfied with the decision issued in that procedure, you are entitled to appeal within the legal time frame. STATE SECRETARY Davor Mrduljaš, lawyer Can anyone understand this ??
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