Registration of short-term rentals in CWTON and real estate tax

On 20 May 2026, an EU regulation concerning short-term rental rules entered into force. A key element is the obligation to register such units (premises) by entering them in the Central Register of Tourist Accommodation Facilities (CWTON). A registered property will receive a special number, which will have to be included in rental offers, in particular on sales platforms. The registration may have practical consequences for the applicable real estate tax rate.

Short-term rental – what is the current position?

Currently, units offered for short-term rental must be reported to municipal registers maintained under the Act on Hotel Services. In practice, this obligation has often not been complied with or enforced. Separately, legislation is being prepared to specify the details of the EU regulation, including the technical implementation of CWTON. Data from CWTON will be consolidated into an EU register.

Offering short-term rentals in a residential building is treated as occupying space for business activity, similarly to a hotel. This entails real estate tax that is more than 30 times higher. Guidance in this respect was presented, among others, in the resolution of the Supreme Administrative Court of 21 October 2024, case no. III FPS 2/24. Registration of units in CWTON may automatically be perceived by a municipal tax authority as meeting the condition of “occupation”, with the assumption that the highest real estate tax is due for the entire year. For units fully intended for such rental, CWTON will increase the effectiveness of inspections and enforcement.

What is the practice? Many premises in residential buildings are rented out on a short-term basis only occasionally

In practice, many units in residential buildings are rented out on a short-term basis only occasionally. This may apply to privately owned units, for example during the holiday season. It may also apply to units in PRS residential buildings or student accommodation, which are used for short-term rental during transitional periods or gaps between long-term leases. Such units shall also be registered in CWTON. This may give rise to practical problems.

The Local Taxes and Fees Act does not provide for a specific procedure in this respect. It is generally assumed that, in the months in which short-term rental takes place, the rate applicable to business activity should be applied, as real estate tax is calculated on a monthly, not daily, basis. This may mean that several corrections of the real estate tax return will have to be made during the year.

CWTON – practical relevance

An entry in CWTON, as well as in the current municipal register, will certainly constitute evidence of business activity, although this should not automatically be linked to the highest tax burden. Depending on the scope of the entry, the real estate tax consequences may vary. Simplifications by tax authorities, resulting in higher tax for the entire year, cannot be ruled out. It is therefore important to carefully consider the “business” use of the premises against the scope of the entry in the relevant register, including from the perspective of real estate tax burdens.