Short-term rental in Czech refers to accommodations that are rented from several nights to several months. Flats and apartments for short-term rent are entirely and fully furnished and offer comfort and coziness that makes holidaymakers feel at home even when they travel. They are usually equipped with bed sheets, towels, tableware, kitchen utensils, Wi-Fi, etc. They are also referred to as “Pension,” although pension literally means “bed and breakfast”. Other names include Airbnb, Vacation rental, holiday homes, holiday accommodation, home sharing, etc.
Holidaymakers are described as people who rent out a place other than their permanent place of residence for a short-term period usually for holiday.
The accommodation provider/owner is the person who owns a vacation rental apartment. This person may also live in the accommodation or elsewhere. Many vacation owners in the Czech are usually foreigners that do not reside in the apartment.
The maximum length of stay is usually described as the maximum number of days of the rental of accommodation to a single guest or tenant. It can also be defined as the maximum number of days that the landlord or operator can accommodate guests in a year. The definition varies from place to place.
Czech does not have a specified length of stay for short-term rental operators. It is generally assumed to be less than 30 days. As a proposed bill was passed regarding restrictions that affect short-term rental owners that rent more than 30 days in a year and those that accommodate a single guest beyond 60 days in a year.
So it is advisable to check your local jurisdiction later if the bill was successfully passed but at the time of compilation of the article, there is no specific length of stay.
The obligation for visitor registration currently applies to short-term rentals across the entire country of Czech. Holiday accommodation hosts are required to inform the Czech Police of the presence of a foreigner in their accommodation within three days of arrival. Additionally, they must maintain a guest register containing pertinent data on each guest they have hosted in the previous six years.
There are numerous national bills that are waiting to be passed regarding the regulations that should affect holiday accommodation irrespective of their location in Czech such as the need to pay business taxes, and also various municipality taxes. The state and city authorities, such as building and trade licensing authorities, may restrict or ban vacation rentals in their local jurisdiction until any of the bills are passed.
In Prague, vacation homeowners have to currently register for social security and health insurance, obtain a trade license, and complete the necessary mandatory reports, such as tax returns, social security applications, and health insurance reconciliation reports. In addition, accommodation premises should comply with the building act, and an accurate occupancy permit is necessary because there are different regulations for different rental apartments and facilities.
Ensure you check your local jurisdiction to know the rules that apply.
There is no national tax that affects Airbnb in Czech rather, taxes are imposed on a sub-national level. Each state and local jurisdiction within the states has the authority to impose its own short-term rental tax. Some places such as Prague require short-term rental providers to register for VAT and pay a 10% Vat on their income. Other places may require you to pay the rental income tax. It is also possible that your jurisdiction may not subject your income to any tax but you might have to report the rental income generated from short-term rentals in tax returns.
It is crucial that you check with the city and state where your rental property is located to know the rules that affect short-term rental in the jurisdiction.
There is presently no national permit, license, or registration requirement for owners of short-term rentals in the Czech Republic, but if the proposed bill is approved, you may need to get the trade licensing permit regardless of your location in the country. Additionally, your local authorities may ask you to register for other licenses, such as building permits, zoning permits, etc., and submit tax permit applications.
The requirement to confirm the necessary registrations with both state and local authorities cannot be over-emphasized. To access the most recent information on the laws and regulations that apply to your short-term rental properties in the Czech Republic, visit our website's page on your sub-national jurisdiction.
There is no national short-term rental associations in Czech.
Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.