eTurista: the end of unregistered short-term rentals. Is Airbnb still worthwhile?

eTurista – mandatory registration

An amendment to the Tourism Act, which is still awaiting final approval by the Chamber of Deputies, will introduce mandatory registration for all providers of short-term accommodation. Every accommodation provider will have to obtain a registration number, without which it will not be possible to advertise a property on online platforms such as Airbnb or Booking. The system is intended to make administration easier. For example, notifications of foreign guests’ accommodation can be completed directly online, with the data automatically passed on to the relevant authorities. The aim of the register is to curb unregistered rentals and promote fair conditions for all accommodation providers.

Short-term rental is not renting – it is a business activity

Not sure whether the new obligations introduced with the eTurista register apply to you? If you regularly rent out your property to guests, this constitutes a business activity, namely the provision of accommodation services. This brings tax and administrative obligations:

• you must hold a trade licence,
• you pay income tax,
• registration for social security and health insurance,
• filing a tax return,
• an overview of income and expenditure for the Czech Social Security Administration (ČSSZ) and health insurer.

If you let your property without a trade licence and without making the required contributions, you risk a fine and additional tax and insurance assessments.

Letting – passive income without a trade licence or contributions

If a trade licence and the associated obligations are beyond your capacity, but you still want to let your flat on a short-term basis, an elegant solution is to lease it to us – you enter into a lease agreement with us, a company that then lets the flat to guests. This means you are not conducting a business activity, and you:

• receive rental income under § 9 of the Income Tax Act,
• do not pay social security or health insurance contributions,
• are not required to hold a trade licence,
• pay income tax on rental income.

The difference is fundamental – you are not a business operator, but a landlord. This model brings not only a lower tax burden, but also substantially less administration and time commitment.

Why let with Bohemian Estates?

Our company provides complete management of both short-term and long-term rentals. We are not simply a company that brokers a rental for you – we are your tenant, which makes things considerably easier for you:

• You have a lease agreement with us – your legal relationship is straightforward: a lease agreement between you and us. Everything else is our responsibility.
• You avoid a trade licence, contributions and paperwork – you receive passive income because we take responsibility on your behalf. You do not need to register a trade licence, health or social insurance, or with eTurista.
• We ensure legal operation and communication with authorities – we manage accounts on online platforms, handle pricing, arrange cleaning and guest services, and communicate with the Foreign Police.
• We maximise the value of your property – we will assess whether it makes sense to use the property for short-term rentals or whether converting it to a long-term rental would be more advantageous. Either way, you will earn income and avoid problems.