Daily Rentals: Everything You Need to Know Before Obtaining a Permit Certificate

The regulation that entered into force at the beginning of 2024 made the short-term rental of residential properties for less than a hundred days subject to a permit certificate. Many people who were doing this business before the regulation still continue out of old habit and do not realize the magnitude of the fines being levied.

The hardest condition: unanimous consent of the condominium owners

For the permit certificate application, the unanimous consent of all condominium owners in the building is required. A majority is not enough; a single owner's objection stops the application. In practice, the vast majority of applications get stuck here.

The consent is obtained as a condominium owners' board resolution and attached to the application. The approval of the site management or the manager does not replace this condition — this is a frequently made mistake.

This unanimity condition is not required in high-end facilities with services such as reception, security, daily cleaning, healthcare, and a swimming pool. Checking whether the building falls into this definition before investing prevents subsequent disappointment.

Multiple apartments in the same building

The number of permit certificates to be issued in the name of one person cannot exceed one-fourth of the total independent sections in the building. If this ratio corresponds to more than five independent sections, a workplace opening license is also required. The model of buying a building and opening all of it to daily rentals has effectively turned into licensed business operation with this rule.

Plaque obligation

It is mandatory to hang a plaque at the entrance of the residence for which the permit certificate is obtained, indicating that it is rented for tourism purposes. Not hanging the plaque is a separate reason for a fine; if it is not remedied within the given period, the fine multiplies.

How do fines multiply?

• An administrative fine is applied for each independent section in rentals without a permit certificate.
• A fifteen-day period is granted; if a permit is not obtained within this period, the fine increases fivefold.
• If the violation is repeated, the fine is multiplied once again.
• The tenant daily renting the residence to third parties is also subject to a separate fine.
• Splitting the contract in order not to exceed one hundred days is also a reason for a fine.

Fines are applied per independent section. For someone illegally renting out three apartments, the amount triples; this quickly reaches a magnitude that will wipe out all income of a season.

Tax side: now commercial earnings

Daily rental is not considered income from immovable property capital like classical residential rent; it is evaluated as commercial earnings. This fundamentally changes the nature of the business.

• The obligation to establish tax liability and keep books arises.
• A document must be issued for each rental.
• Value-added tax liability begins.
• Accommodation tax also arises.
• Exemptions applicable in residential rent cannot be utilized.

In other words, high gross income can be misleading. After deducting tax, accounting, cleaning, operation, and platform commissions, the remaining amount must be compared with the long-term rental income of the same apartment. In some regions, daily renting wins by a landslide; in others, it is not worth the hassle.

Checklist before making a decision

• Are you the owner of the residence? The permit certificate is issued in the name of the owner.
• Will you be able to obtain the condominium owners' board resolution?
• Does the number of apartments registered in your name in the same building exceed one-quarter?
• Is there a suitable entrance where the plaque can be hung?
• Are you ready to open a commercial earnings tax liability and bear the accounting cost?

If you cannot say yes to all five questions, the permit certificate process stalls before it even begins. This article is for general informational purposes; consult your financial advisor and lawyer before applying.