The key solutions envisaged by the draft amendment include, in particular:

1. Change to the definition of hotel services

The draft clarifies the concept of hotel services by specifying that they include publicly available, short-term rentals (lasting less than 30 days per individual customer) of houses, apartments, rooms, accommodation spaces, and pitches for tents or caravans, together with services related to the stay within the property.

2. Establishment of the Central Register of Tourist Accommodation Facilities

The draft provides for the establishment of a central, publicly accessible register maintained in an ICT system and covering all properties providing hotel services. It will replace the existing fragmented registers maintained by municipalities and enable properties to be identified through a single system.

3. Obligation to obtain an identification number

Each property entered in the CWTON will receive an individual identification number. Obtaining this number will be a prerequisite for the lawful provision of hotel services subject to the registration requirement. The number will have to be included in all offers published, among others, on booking platforms.

4. Enhanced powers of administrative authorities

The draft provides that the minister responsible for tourism will be responsible for maintaining the CWTON, assigning identification numbers and ensuring the operation of the ICT system. At the same time, municipalities will retain inspection powers with respect to properties providing hotel services, including the right to conduct inspections, verify data in the CWTON, remove properties from the register, impose administrative fines and introduce local restrictions on the provision of hotel services for justified reasons.

Significance of the proposed changes for businesses

The establishment of a central register will also be significant from a tax perspective. The data collected in the register will provide tax authorities with an additional source of information enabling them to assess how a property is actually used and, consequently, verify whether the correct real estate tax rate is being applied.

This is particularly important in the case of short-term rentals. A resolution of the Supreme Administrative Court of 21 October 2024, case no. III FPS 2/24, confirmed that, unlike long-term rental, short-term rental does not serve to satisfy housing needs but is instead similar in nature to the provision of hotel services.

In light of this resolution, a property used for short-term rental purposes is treated as being used for business activities, which entails the application of a higher real estate tax rate than that applicable to properties used for residential purposes.

Furthermore, the proposed changes may also affect the practical application of personal income tax (PIT), as tax authorities may adopt an approach under which income from properties disclosed in the CWTON is treated as income derived from non-agricultural business activity rather than from so-called private rental, which is subject to lump-sum taxation.

It should be emphasized that the above solutions are currently at the legislative stage. The final scope of the new obligations and the date on which the provisions will enter into force will depend on the wording of the amendment ultimately adopted.

Nevertheless, even at this stage, we recommend reviewing existing agreements and the business model adopted in light of the proposed regulations.

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Should you require support in this or any other matter concerning real estate tax, we encourage you to contact our team.