Property Lease (Rental)

Certification of signatures or a notarial deed gives the contract the force of a public document and makes it easier to enforce your rights (e.g. if the tenant does not leave). It is also needed if you want to register the lease in the cadastre.

Income from renting out real estate is income from property (Article 34 of the Law on Personal Income Tax), and the tax is calculated at 15% (Article 10(3); the Tax Administration states the same rate in its notices on the annual return). Taxable income is the difference between income and documented costs; if costs are not documented, 30% of income is recognised (Articles 35–36). When income is received directly, the tax is paid when the annual tax return (GPPFL) is filed, due by the end of April for the previous year (Articles 43 and 49a). The return for property income is filed on paper with the competent tax body, i.e. the regional unit of the Tax Administration; only the return for basic self-employment is filed through the IRMS portal.

When a foreigner uses accommodation from an accommodation provider, the provider is responsible for reporting the stay (Article 97 of the Law on Foreigners). The registration and deregistration are submitted to the police within 12 hours of arrival, on the prescribed form (Article 97(2)). The provider submits them electronically or, if there are no technical possibilities, through the tourist organisation or to the police in writing, with a police certificate of the lack of technical possibilities (Article 99).

A lease can be registered in the cadastre as an encumbrance to protect the tenant's rights, especially for long-term leases. The application is submitted to the regional unit of the Real Estate Administration with the certified contract.