Croatia is introducing Property Tax

What has happened

Croatia’s Minister of Finance, Marko Primorac, confirmed at a press conference after a government meeting that a property tax is set to be introduced. Its purpose is to equalize long-term and short-term rental conditions.

Details

According to Marko Primorac, the real estate tax is planned to be introduced by transforming the existing tax on holiday accommodation. And all the details, including exact rates and other figures, will be presented soon.

“The goal is to expand the range of properties that will be subject to the tax, modify the rates, and introduce a mandatory range for taxing such properties. We will mandate that all local government units implement this tax, in line with our objective of shifting the tax burden from labour to property,” Primorac said.

What else

The minister added that the proposal includes increases in both the lower and upper tax rates, but did not want to disclose specific figures, deferring the announcement to the near future.

“The property tax will not apply to individuals who live in the property or if it is under a long-term rental agreement. All others, whether individuals or legal entities, who own a property will be required to pay the tax,” the Minister stated.

He also noted that anyone with a long-term rental agreement who rents out the property for at least ten months of the year would not be subject to the property tax.

Context

Croatia was one of the few countries in Europe where there was no annual property tax. Due to public protests, the introduction of the fee was postponed for a long time.

However, there are taxes for owners of holiday homes (Porez na kuće za odmor). Legal entities and individuals - owners of holiday homes pay into the municipal budget. A similar rule applies to country houses, the specific amount in this case is also determined by local authorities.

Prian is closely monitoring the situation. We will tell you more about the new property tax as soon as the Croatian authorities share additional information.

Источник: Croatia Week

Photo by Grant Ritchie on Unsplash

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