Czech Republic Update: New guidelines for building offices in cases of Airbnb rentals

The sharing economy in the field of accommodation services is widely used by owners of flats and houses in the Czech Republic. However, owners are on the edge of the law when they use properties for purposes other than those for which they were intended. Moreover, in connection with the provision of accommodation services, e.g. via the Airbnb platform, operators often do not comply with legal obligations (they do not pay income tax, do not use EET, do not have a trade licence, etc.).

Until now, however, this conduct has been difficult to sanction by the administrative authorities. They can only use the possibilities provided by the Building Act and its implementing regulations, which, however, do not fully reflect the current reality created by the sharing economy.

For this reason, the Ministry of Regional Development has issued new guidelines that should unify the practice of building authorities and thus lead to more effective sanctions against persons operating unauthorised businesses in the field of accommodation services. The new guidelines seek to fill in the gaps in the legislation in force and to unify the authorities’ practice in the future.

The guidelines make it clear that an apartment or house cannot be used for accommodation services in certain cases, as this leads to the use of the building by its owner contrary to its intended purpose (the building can only be used for the purpose defined in particular in the approval of the building permit).

If the building authority receives a complaint about unauthorised use of the building, either from the trade office or a third party (e.g. a neighbour), an officer will have to check the legal status and possibly also carry out an inspection of the building. If the owner is found to be using the building in contravention of the current legal status, the Authority will call upon the owner to cease the unauthorised activity and, if this is not complied with, will prohibit the use of the building. A fine of up to CZK 500,000 may be imposed for this act, which is an offence under Section 178 of the Building Act.

By Konečná & Zacha law firm, Lithuania, a Transatlantic Law International Affiliated Firm.  

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