As of 1 January 2025, the rules for non-residents who rent out accommodation in Croatia have changed.

Previously, the situation was simple, but unfavourable, almost all non-residents had to be in the VAT system in Croatia.

Today, there are different options, depending on the method of renting and the amount of turnover.

Below we provide a simplified explanation of what this means in practice.

What changed as of 1 January 2025

According to the amendments to the Value Added Tax Act, non-residents are equalised with resident landlords, but with a special cross-border regime for small taxable persons.

This means that a non-resident no longer has to automatically enter the VAT system in Croatia, but only if certain conditions are met.

Option 1: EX number, small taxable person, without Croatian VAT

This is a new possibility from 2025.

If:

• total annual turnover within the EU does not exceed 100,000 EUR
• turnover in Croatia does not exceed 60,000 EUR
• you are not already in the VAT system in your home country

you may request the status of a small taxable person through a special cross-border procedure.

The application is submitted in the home country, and an individual identification number with the EX designation is assigned.

After the EX number is assigned:

• you do not pay VAT in Croatia on accommodation services
• you are not registered in the Croatian VAT system
• you have the obligation of quarterly reporting in your own country

This is administratively the simplest solution for smaller landlords.

The system is applied through the Tax Administration and is harmonised with the rules of the European Union.

Option 2: Cooperation with a Croatian agency that assumes the VAT obligation

If you are not registered for VAT in Croatia and operate exclusively through a Croatian travel agency that acts in its own name, then:

• you do not have the obligation to register for VAT in Croatia
• the agency assumes the VAT calculation
• administration is minimal

VAT of 13 percent is calculated through the agency model, but you personally do not enter the Croatian VAT system.

You do not have the right to deduct input VAT, but you also do not have monthly VAT returns, bookkeeping and additional administrative costs.

For a large number of non-residents, this is a practical and stable solution.

Option 3: Entry into the Croatian VAT system

If:

• you rent directly to guests
• you operate through foreign platforms or agencies
• you do not have an EX number
• you exceed the threshold of 60,000 EUR in Croatia

then you are obliged to register in Croatia for VAT purposes.

This means:

• calculation of 13 percent VAT on accommodation services
• keeping business records
• monthly VAT returns
• the right to deduct input VAT

This is administratively the most demanding model and functions similarly to running a business entity in Croatia.

Which option is the most favourable

It depends on:

• the amount of turnover
• the method of advertising
• the structure of guests
• plans for the future

For smaller non-residents with turnover below the thresholds, the EX number is often the simplest solution.

For those who want a stable model without Croatian bookkeeping and without entering the VAT system, cooperation with a Croatian agency that assumes the obligation is often administratively the most peaceful path.

Entry into the VAT system makes sense only if the turnover is higher or if the business structure is such that the input VAT refund is significant.

Conclusion

From 2025, non-residents are no longer automatically forced to be in the Croatian VAT system, but the choice of rental model directly determines the tax obligations.

The biggest mistake is to operate without a clear tax status and without understanding which rules apply.

If you are a non-resident and rent out in Croatia, before making a decision check:

• what your actual turnover is
• whether you operate exclusively through a Croatian agency
• whether you have or do not have an EX number

A properly set business structure means less administration, less risk and long-term more secure business operations.