21. When is the rent paid and how?

The annual rent is paid in arrears, in 2 equal instalments, in accordance with paragraph 5 of the lease agreement, by the end of June and by the end of December of each year of the term of the contract.

23. When renting a house, does the client have to give details of the bank account to which the rent is paid?

1. On what basis is VAT recovered by an investor when buying a holiday home in Italy/Croatia? What’s the procedure and how long does it last?

An investor may recover Italian / Croatian VAT included in the price of a house (Article 7 of Council Directive 2008/9/UE 2). An investor has the right to regain the whole VAT amount from the Italian/ Croatian Tax Office. For this purpose, an investor should take the following steps:

a.) Submit a VAT-R registration application to the Tax Office, appropriate to an investor’s place of residence, and to submit to the Tax Office information about leasing a holiday home to a company whose registered office is in Italy/Croatia. The submission of both the application and information is essential to get an identification number in Poland for VAT purposes. The acquisition of this number doesn’t mean that an investor will have to settle VAT with the Polish Tax Office. The acquisition of an identification number for VAT purposes from the Polish Tax Office is a necessary condition to claim a VAT refund from Croatia (Artice 89 of the Act on tax on goods and services). (Though, after registration for VAT purposes an investor will have to submit monthly VAT returns, which will not show any taxable sales, to the Polish Tax Office).

b) fill in and submit online a VAT-REF application regarding a VAT refund from Italy/Croatia. The brochure on completing the application can be found in the following link:

http://www.finanse.mf.gov.pl/systemy-informatyczne/e-deklaracje/instrukcje/-/asset_publisher/Kq7C/content/instrukcje-zwiazane-ze-zwrotem-podatku-od-wartosci-dodanej-vat-ref

c) an investor should attach to the application scans of all invoices received from the seller, regarding both advances paid by the investor (if there were any) and make the final payment. An investor may submit an application for a VAT refund from Italy/Croatia until 30 September the following year after receiving the invoice. For example, an investor buys a holiday home in May 2020, and then the investor can submit a VAT-REF application for this year until 30 September 2021. There is no time limit concerning when the application is submitted. At the earliest it may be submitted immediately after receiving the seller’s invoice. Irrespective of when the VAT-REF application is submitted, the investor has to possess an identification number for VAT purposes in Poland. Paradise Village S.A. helps throughout the whole procedure. The Tax Office in Croatia should return VAT within 4 months from submitting the application (not longer than 8 months). VAT refund is transferred to the bank account specified in the application (after deducting the cost of an international transfer). The purchase of a mobile home is not subject to VAT in Poland.

2.What are the purchase tax settlements for an individual and a person running a business?

Paradise Village S.A. is able to provide the support of an accounting office, which will complete all legal and tax formalities on behalf of the buyer.