August the 31st, 2024 – The topic of Croatian property tax has been rearing its ugly head for many years now, and it seems as if it’s finally going to be introduced, in a form anyway.
As Poslovni Dnevnik writes, Finance Minister Marko Primorac has revealed that as things currently stand, the proposal is to increase both the lower and upper limits for Croatian property tax. He didn’t want to reveal specific figures as yet, saying that he was leaving that for Monday.
Minister Primorac spoke about the introduction of Croatian property tax after the most recent government session. He stated that the idea is to equalise the treatment of both long-term and short-term rental properties, adding that the plan is for Croatian property tax to be introduced by transforming the existing tax on holiday homes, as reported by tportal.
“In this context, we’ll present the changes on Monday. The current aim is to expand the base of real estate that will be covered by this new tax and to change the range and introduce the obligation of the range by which such properties will be taxed. We’ll prescribe that all local self-government units have this tax and achieve our goal, which is to shift the burden from labour taxation to Croatian property tax,” stated Primorac.
“This tax will not be paid by the person who lives in the property or if they have a property that will be on a long-term lease. All other natural or legal persons, if they own property, will pay tax on it,” said the minister.
He added that the taxpayer will be determined in March 2025 for the current year. Whoever has a long-term lease contract and rents the property for at least ten months in the current year will not need to pay this type of tax.
