Holiday cottages and agritourism – legal regulations

Farmers are keen to invest in holiday cabins for agritourism, because they attract plenty of guests who want to enjoy an idyllic country life on their holiday. To run an agritourism business and rent out holiday cabins, you have to do so in line with the rules set out in law. Find out what requirements you must meet if you want to rent out holiday cabins as part of agritourism.

Holiday cabins and agritourism – definitions

Holiday cabins do not require a building permit if their built-up area does not exceed 70 square metres. To use a structure of this kind, you only need to notify the authorities about the building.

Agritourism is defined as a type of facility providing hotel services, as well as other services as part of non-agricultural business activity. It is carried out on working farms. Tourists may be accommodated in rooms, residential cabins and farm buildings adapted for overnight stays. Traditionally, in agritourism the host also provides meals and additional entertainment.

Cabins and agritourism – a beneficial solution loved by visitors

Holiday cabins and agritourism are a solution tourists love. People are increasingly moving away from renting flats or apartments for their holidays in favour of quieter places in the heart of nature. Agritourism services and holiday cabin rentals are so popular mainly because they offer a chance to relax far from the city bustle and enjoy fresh air. They also give guests the opportunity to be around farm animals or spend time with family and friends in a beautiful setting.

Providing tourist services on farms can involve not only renting out rooms or cabins, but also offering additional services such as sleigh rides, horse riding courses, fishing or a mini zoo.

It is worth remembering that for some forms of activity, the regulations on physical culture also apply. Under them, running sports activities requires a sports instructor qualification, and in some cases also teaching credentials. It can therefore sometimes be easier to simply make, for example, a surfboard available to tourists, without running workshops, courses or organised classes in surfing.

What does investing in holiday cabins involve?

Holiday cabins are an alternative to other forms of rental on farms. You can rent them out on a short-term basis in accordance with the regulations discussed in later sections of this article. You can sell home-cooked meals, and a farmer can earn money from additional services (unless they rely on exemptions that require recreational services to be free of charge).

Investing in holiday cabins makes it possible to:

• place them practically anywhere on your plot,
• quickly open the space to tourists once the cabin is assembled and just a few jobs are done – thanks to the high degree of prefabrication of the structure,
• personalise the space – e.g. with the option of installing underfloor heating or adding a freestanding stove.

Agritourism and holiday cabins – the obligation to register the facility

If you want to run an agritourism farm, you should register it in the register of "other facilities providing hotel services". This registration requirement applies to all facilities that are not hotels. You do not need to receive any decision, but to prove in the event of an inspection that you have registered, you must keep proof of posting the notification letter or proof of its submission.

Unregistered activity or the need to run a business?

Agritourism can be run as unregistered activity if the income earned from it does not exceed 50% of the minimum wage. If in any month your income is higher, you must register and be entered in the business activity register within 7 days of exceeding the income threshold.

This rule does, however, let you "test" whether a given form of activity on your farm suits you. When running unregistered activity, remember that you are required to keep records – a simplified sales register and issuing invoices or receipts.

To be able to host guests, you must meet a number of other legal requirements. You must comply with sanitary and fire safety requirements. You must also meet minimum equipment requirements, although in most cases this causes no problems. When renting out cabins, you must keep guest registers. This in turn requires compliance with personal data protection regulations.

Holiday cabins and agritourism – regulations

As far as holiday cabins and agritourism are concerned, the regulations on freedom of economic activity do not legally apply to them. Renting out holiday cabins involves providing hotel services. You therefore need to carry on the "rental of other facilities providing hotel services". For a holiday cabin located on a farm, you will need to pay income tax and property tax.

Holiday cabins in agritourism and taxes – what to remember? Holiday cabins and agritourism

If you do not meet the KRUS conditions, you must register with the Social Insurance Institution (ZUS). When renting out holiday cabins, farmers are subject to personal income tax and cannot use the tax exemption. They can, however, choose one of several ways of paying income tax:

• under general rules – taxation based on the income actually earned.
• tax card – which under the regulations requires paying a fixed monthly amount, calculated on the basis of the size of the town in which the business is run.
• through lump-sum tax on recorded revenue, in accordance with the regulations on the lump-sum income tax on certain revenues earned by individuals.

If you are on the lump-sum income tax, as long as your annual revenue does not exceed PLN 50,000, you benefit from the goods and services tax exemption. However, you must keep a daily sales register. Depending on the chosen method of settlement, you can count on various deductions – e.g. for social insurance, health insurance or sickness insurance contributions.

FAQ:

1. Is it worth investing in holiday cabins?

Holiday cabins are a great idea with strong potential to attract a large group of tourists. They are quick and easy to assemble on site, and their running costs are relatively low.

Do you need to register a holiday cabin?

A holiday cabin must be registered, but if its built-up area does not exceed 70 square metres, no permit is required.