Ecovis in Myanmar

Short term rental regulations Czech Republic: What landlords need to consider in the future

26.11.2024

In October 2024, the Czech Ministry of Regional Development issued a regulation on short-term rentals. The new methodological guide to clarify the rules for short-term rentals applies in particular to apartments offered on platforms such as Airbnb. The Ecovis experts know what landlords must prepare for.

As formal legislative amendments are in process, this current guideline serves as an intermediary step, helping authorities distinguish between rentals and accommodation services.

Defining rental and accommodation services

A key component of the Ministry’s methodology is the clear distinction between “rental” and “accommodation” services, each carrying different regulatory requirements. Under current Czech law, long-term rentals fulfil the tenant’s housing needs and typically require less regulatory oversight. In contrast, accommodation services, such as those provided through Airbnb, satisfy only temporary accommodation needs and are considered as business activity. This classification requires providers to adhere to stricter business regulations, including obtaining a business license, registering guests, and potentially paying VAT and local accommodation fees. The methodology thus helps clarify that short-term rentals intended for temporary stays fall under accommodation laws and not housing rental laws.

Do you provide housing? Get advice from experts to ensure the new requirements are implemented correctly.

JUDr. Mojmír Ježek, Ph.D., Partner, ECOVIS ježek, advokátní kancelář s.r.o.

Requirements for Airbnb premises

According to the Ministry’s guidance, premises used for short-term accommodation must be licensed and properly categorised as “accommodation units” under the Czech Building Act. This requirement contrasts with standard apartments, which are designated for residential use. Building authorities can inspect properties and issue fines if they identify non-compliance. For instance, a property classified as residential cannot legally operate as an Airbnb without first obtaining a re-licensing permit as an accommodation unit. The Ministry also claims that the case of use “only to a minimal extent (both in area and time) for accommodation purposes” and further use by the landlord for living purposes, may mean that these stricter requirements may not be fulfilled.

For further information please contact:

JUDr. Mojmír Ježek, Ph.D., Partner, ECOVIS ježek, advokátní kancelář s.r.o., Prague, Czech Republic
Email: mojmir.jezek@ecovislegal.cz

Uruguay free trade zone: A unique opportunity to invest

25.11.2024

Free trade zones are particularly well-known and popular because of their tax advantages. In Uruguay, a company that operates in a free trade zone is exempt from paying all current or future national taxes. The Ecovis experts know what other advantages there are for multinational companies that want to settle in a free zone.

There are different types of free trade zones depending on the type of activity that can be carried out, which can be industrial, commercial, or services. In Uruguay, the government declared the free trade zone regime to be of national interest, which reflects the interest and support for the activities carried out there. As a result, Uruguay has 14 free trade zones in different parts of the territory, with a wide variety of sectors and companies.

Uruguay’s Law 15,921 declares “the promotion and development of free zones is of national interest, with the objectives of

• promoting investments,
• diversifying the productive matrix,
• generating employment,
• increasing the capabilities of the national workforce,
• increasing national added value,
• promoting activities with high technological content and innovation,
• promoting the decentralization of economic activities and regional development, and in general terms
• favour the insertion of the country in the dynamics of international trade in goods and services, and international investment flows.”

Being a regime of national interest guarantees the support of the government and the reliability of the regime in a country that also stands out in the region for its political, economic, and social stability, which makes it an attractive and safe destination to invest.

We will open an office in a free trade zone by the end of 2024. This will enable us to offer our services such as auditing, tax and management consulting or process outsourcing, to those companies that are in Uruguayan free zones or in other countries.

Cristina Caiafa, Advisory services, ECOVIS Uruguay, Montevideo, Uruguay

Additional advantages for companies in free trade zones

In addition, it is important to highlight that the regime allows the possibility of hiring up to 25% foreign personnel, which allows qualified people to be brought in from abroad to train local employees. Also, although the regime establishes that the operations of free trade zone users must necessarily be carried out within the territory of the free trade zone, the rule was made more flexible as a result of the COVID pandemic to incorporate the option of home office. This recognises the new reality of working life, but is limited to 90% of staff completing 60% of their working time in person within the free trade zone.

Free trade zones in Uruguay are very attractive for companies, and many multinationals have already chosen Uruguay as the location for their regional hubs or shared services centres.

For further information please contact:

Cristina Caiafa, Advisory services, ECOVIS Uruguay, Montevideo, Uruguay
Email: cristina.caiafa@ecovis.uy

Company secretarial services Poland: Helping you deal with regulatory challenges

21.11.2024

In the current business environment, companies face numerous challenges from regulatory obligations or simply from following the basic rules of corporate governance. This is what happened to an Ecovis client from Asia who wanted to start business activities in a sensitive sector in Poland and resorted to company secretarial services (CoSec) – a case study.

In many jurisdictions, even basic actions such as filing the minutes of an annual shareholders’ meeting, changing the data in the commercial register or the registration of ultimate beneficiary owners requires not only having the right IT tools or access to government platforms etc., but also the specialist knowledge involved. All this red tape is especially troublesome for investors operating many special-purpose vehicles (SPV) with limited day-to day business operations, as well as for investors from non-European jurisdictions who are unaware of the regulatory environment in Europe, and in Poland in particular.

The case of an Ecovis client

The client was planning to be active in the field of consumers loans, a sector which is deemed highly sensitive from a regulatory perspective, mainly in terms of anti-money laundering (AML). The combination of a non-EU ultimate beneficiary owner and sensitive activity caused huge challenges in preparing operations, especially the cooperation with banks.

We offer standard company secretarial services as well as a range of bespoke services – including director services.

Piotr Pruś, Partner, ECOVIS LEGAL POLAND Law & Tax, Warsaw, Poland

Licensed business start thanks to Ecovis service

In addition to providing director services during the critical initial time period, Ecovis was able to provide support in the area of compliance, especially AML. We were also able to facilitate the licensing process and start the cooperation with banks, for example with the opening of a bank account.

ECOVIS LEGAL POLAND Law & Tax has more than 20 years of experience in supporting foreign companies in Poland. As a provider of company secretarial services in Poland, Ecovis also takes care of the minutes of board meetings and shareholders’ meetings, the necessary filings and business correspondence, as well as other corporate housekeeping matters. With this know-how, it was possible to implement the requirements of the Asian client quickly.

For further information please contact:

Piotr Pruś, Partner, ECOVIS LEGAL POLAND Law & Tax, Warsaw, Poland
Email: piotr.prus@ecovis.pl