If you are an individual or a company providing accommodation services to tourists in Croatia, you will likely need to register for VAT, file monthly VAT returns, and issue invoices. You can also deduct input VAT on supplier invoices related to your accommodation business.

 

However, VAT registration may not be necessary if you provide B2B services only, as VAT is reverse-charged to the buyer. For example, if you rent your property to a tourist agency, the agency handles the VAT. In this case, you can still reclaim eligible input VAT (e.g., apartment renovation) through the cross-border VAT refund system. Note that this process can be lengthy (several months to a year) and is often closely scrutinized by the Croatian Tax Authorities, especially for non-EU residents.

 

The rules are generally the same for individuals or companies renting premises in Croatia. Additionally, you can avoid VAT registration if you only rent apartments for residential purposes (long-term living).

 

Finally, it is important to note that those types of activities might lead to the requirement for registration for income tax purposes in Croatia regardless of VAT rules.