|
|
Post by lkapone on Jan 4, 2011 17:03:27 GMT 1
I have bought an old Dalmatian house built before 1968 and want to rent it out. My property manager told me the only way to rent it out is by obtaining a rental license first which is possible for this property. As the rental license will cost me in total almost 5000 Kuna included all the paperwork, I'm doubting if this is a good thing to do.
Any advice on what I should do?
|
|
|
|
Post by upthevilla on Jan 4, 2011 17:53:47 GMT 1
Geting the licence is your ONLY option if you intend to rent to tourists.
The procedure takes 2 - 4 months to complete
You will have to give power ( punomoc ) to a Croatian citizen to apply for you
If you are NON Croatian citizen you will also have to open a Croatian company, ( d.o.o. )
As a PRIVATE foreign national you cannot get the permission
Your company, that will in future do the renting can get the permission
|
|
|
|
Post by crojoe on Jan 4, 2011 17:56:24 GMT 1
If it's an ok property and you figure you can rent it out, then go for it. I mean, you should be able to get that back in renting 1 room for 1 month, that is if you can fill the beds, then you should do fine. Problem comes if you plan to rent it out while abroad, then you start needing to pay someone to take care of the property, maybe a agent fee, cleaning room service and so forth. If you plan to be there, then you won't get rich but it can help pay your stay for the summer. Just remember you have to pay daily tourist tax, accountant fees and any profit tax. It's not all just cash in hand (although we all know the truth with most rentals on the coast). There are also other requirments concerning room setup, fire safety and bla bla bla. Zillions of people do it on the coast, so get your feet wet and try it. As the last poster said, you may have to set-up a company or work through a Croatian rental agency, and the process takes a little time.
|
|
|
|
Post by lkapone on Jan 4, 2011 19:58:15 GMT 1
Thanks for the reply. I will work with a property management agency who will obtain the rental license for the house. I was not sure to continue working with them on the long term as costs are pretty high. The rental license will only be possible as long as they manage reservations however. As the house is rented out pretty well the previous years, I think this is the best options and I can still make a profit of 2-3% after all costs and taxes, and enjoy the house myself some weeks ofcourse.
|
|
|
|
Post by splitska on Jan 4, 2011 22:13:24 GMT 1
I rent to Croatian Residents and have never had a problem. I hired a local girl who I pay E50 a month to keep an eye on things. This is a long term let so there is no changeover required until they eventually move out. I have no rental licence and have never been asked for one. I keep my nose clean by getting my tax adviser to take the lease each year to the tax office and I pay the required tax in advance. It all works very well - although it is a different story if you are renting to tourists - that's when the paperwork starts.
|
|
|
|
Post by splitska on Jan 7, 2011 1:06:09 GMT 1
Forgot to mention I am a private owner and never set up as a company because I am not renting to tourists.
|
|
|
|
Post by usplitu on Jan 8, 2011 12:39:59 GMT 1
You don't say if you own the property in your own name or in your company name .... if it is in your company name, make sure the property manager gets the rental license in your company name and not theirs. Otherwise you will not be able to take over the rental from the manager. Also, it's worth trying to negotiate a deal with the agency that you get a reduced charge when you bring the clients - thus allowing you to advertise yourself and save yourself commissions. Good luck !
|
|
|
|
Post by lkapone on Jan 8, 2011 14:36:11 GMT 1
The property is in my own name. I realise I can't take over the license when I don't use their services in the future, but even for a year it's still more economic as I will pay only 10% income tax with rental license instead of 23%.
They don't work with a commission but with a flat yearly fee added with a fee for services (meet&greet for example) depending the weeks rented. This flat fee for marketing and management of reservations, will be about 10% of the rental income in my case.
|
|
|
|
Post by indianalindsay on Jan 8, 2011 15:25:43 GMT 1
I am interested in your experience, may I have the name of your agent. Probably best if you PM me
Thx
|
|
|
|
Post by upthevilla on Jan 8, 2011 18:18:08 GMT 1
The name of who gets the catagorisation is NOT transferable in any instance.
Each new owner has to get their own and new licence
|
|
|
|
Post by upthevilla on Jan 8, 2011 22:19:23 GMT 1
( if property and rental license are in the d.o.o name, then the company can be sold, and licence can then transferred with company ? )
If a d.o.o own the licence and someone buys the d.o.o then the licence is also bought as its an asset of the d.o.o
However the licence has not transfered ownership.
The d.o.o has changed ownership but the licence has not
The licence is still owned by the d.o.o. with its new owners
Also.. The d.o.o does not have to own the property to get the licence
|
|
|
|
Post by bheywood on Jan 20, 2011 12:38:53 GMT 1
lkapone, it is possible to obtain a rental licence and categorization without setting up a d.o.o - if you'd like details, please email me on enquiries@thisisvis.com. I'm not an agent, just a private individual who has rented out his house to tourists for six years without any bother (unless you count surrendering 15% commission bother...)
|
|
pips
Junior Member
[M0:0]
Posts: 21
|
Post by pips on Jan 23, 2011 1:14:19 GMT 1
Can you please let me know how to achieve this rental situation where I do not have to open a d.o.o. I would realy welcome advise- tried your email address without success message bounced back
|
|
