I case anyone is interested, or it helps this is what my lawyer wrote:
You asked me advice about renting the house , property of company Your d.o.o. , in Croatia.
The answer on this question is in :
HOSPITALITY AND CATERING INDUSTRY ACT (http://www.mint.hr/UserDocsImages/act-tourism-catering.pdf)
In a artical 28. Hospitality and Catering Act it˙s written :
VI HOSPITALITY AND CATERING SERVICES IN HOUSEHOLDS AND IN RURAL HOUSEHOLDS
1 Hospitality and catering services in households
Article 28
(1) Hospitality and catering services in a household may be provided by a natural person who is neither a craftsman nor sole trader (hereinafter: the lessor).
(2) For the purpose of this Act, a lessor is considered to be a citizen of the Republic of Croatia.
(3) Lessors within the meaning of this Act are also citizens of Member States of the European Union and European Economic Area.
(4) For the purpose of this Act, the following hospitality and catering services shall be considered hospitality and catering services in households:
1. accommodation services in a room, apartment or holiday house, which the lessor owns, up to a maximum of 8 rooms, that is, 16 beds, which does not include the number of extra beds,
2. accommodation services in a camp, organised on land which the lessor owns, with the maximum of 7 accommodation units, that is 25 guests at the same time, which does not include children under 12 years of age,
3. breakfast, half board or full board services to guests to whom the lessor provides accommodation services in a room, apartment or holiday house.
As you can read in paragraph of Article 1 catering services in a household may be provided only a natural person.
Your d.o.o. is a company and according to the Article 1. it´s not possible for company to provide catering services.
It´s also predicted in same article, paragraph 4, that natural person must be a owner of houses or rooms or apartmants (it is written “.....which the lessor owns“....)
Because of this article, it´s not possible to conclude a lease contract between your d.o.o. and you and your wife and than rent a house.
It is not possible because you and your wife with that contract, won´t be a owners of the house , but only a lessors.
In a pratice, administrative office for rental permission, tolerated such contract but it´s not in the spirit of the law.
As you can read in a paragraph 3 it´s regulated :
(3) Lessors within the meaning of this Act are also citizens of Member States of the European Union and European Economic Area.
You and your wife are citizens of EU, but in the article 62 of the same law it´s written :
Article 62.
If not otherwise regulated by an international agreement which is in force in the Republic of Croatia, the provision of Article 28, paragraph 3 of this Act shall enter into force on the date of the entry of the Republic of Croatia into full membership of the European Union.
I checked all international agreement between UK and Croatia on web site
www.mvpei.hr/CustomPages/Static/HRV//templates/_frt_bilateralni_odnosi_po_drzavama.asp?id=187and
www.mvpei.hr/CustomPages/Static/HRV//templates/_frt_bilateralni_odnosi_po_drzavama.asp?id=81and I couldn´t find international agreement about catering between your country and Croatia.
I wrote Ministry of Foreign Affairs and Europien Integration to check this information , I´m waiting the answer.
In a case that such international agreement for catering services exist and allows for citizens of UK to provide catering services you and your wife can conclude contract with your d.o.o.
I called your accountant and she said your d.o.o. bought the house with the loans from you, so your d.o.o. instead payback of loans to you, can transfer of ownership of the house on you.
In that case you are allowed to rent it according to the article 1. paragraph 4 (which the lessor owns).
But if you sign that contract you are obligated to pay property tax , 5 % of values of house and land.
In each solution it´s necessary that you as a natural person be a owner of house.
In a case that such international agreement for catering services dosen ’t allowed you as a citizens of UK to provide catering services it’s possible to rent this house to the tourist agency .
Your company also can provide those services.