November the 10th, 2026 – A possible tax increase is looming for Croatian private landlords in yet another strike to their pockets. This goes alongside all of the other changes coming next year.
Croatian private landlords are facing a slew of changes in the way of registration and recording at the Tax Administration next year. As if all of what has previously been announced wasn’t enough, there’s also a possible increase in the annual lump-sum tax on the cards. Index reports that the government is now proposing automatic registration and de-registration of taxpayers who earn income from renting out their tourist accommodation, as well as an increase in the lowest tax amounts in the most tourism-developed cities and municipalities.
The final proposal of amendments to the Income Tax Act was sent by the government to the Croatian Parliament on the 5th of November, as part of the tax changes planned for 2027. One of the novelties relates to the establishment of automated data exchange between the competent institutions and the Tax Administration. On the basis of data from official records the Tax Administration could in the future independently carry out the registration and de-registration of those who earn income from tourist rentals.
official records and data should be better aligned
Until now, people starting to rent out accommodation and earn income from that activity had the obligation to report the start of performing the activity and register in the register of taxpayers. With the proposed solution part of that procedure would be taken over by the competent institutions, whereby administrative obligations should be simplified, and data in official records better aligned. Nevertheless, from the government’s proposal it does not follow that landlords would be freed from all obligations of reporting changes or submitting documentation. The scope of their future obligations will depend on the final legal solution and the rules of its implementation.
an increase in lump-sum tax…
In addition to changes in the recording of taxpayers, the government is also proposing an increase in the minimum amounts of the annual lump-sum income tax from tourist accommodation. These are amounts that are calculated per bed, or corresponding accommodation unit. For cities and municipalities in the first category of tourist development the legal minimum would increase from 100 to 150 euros per bed. In the second category an increase from 70 to 100 euros is planned. This, however, does not mean that the tax will rise by the same amount for all landlords. Local units still determine the amount of the lump-sum tax within the limits prescribed by law, so the concrete effect will depend on how much is currently paid in an individual city or municipality.
For example, a landlord who has six beds in a local self-government unit of the first category, and in which the legal minimum of 100 euros is currently applied, pays 600 euros in tax annually. According to the proposed amendments that amount would rise to 900 euros, which is 300 euros more. On the other hand, where local authorities already apply a lump sum of 150 euros or more per bed, the increase in the legal minimum does not necessarily mean an additional rise in the tax obligation.
there’s no way to avoid these tax hikes
The government’s proposal also covers the amounts that are applied in the event that city or municipal representative bodies do not make a decision on the amount of the lump-sum tax. In units of the first category of tourist development that amount would increase from the previous 200 to 225 euros per bed or corresponding accommodation unit. For the second category an increase from 135 to 150 euros is planned. In practice, this would mean that a landlord with six beds in the first category, in the case of application of that legal amount, would instead of the previous 1,200 euros pay 1,350 euros annually. These are amounts provided for in the draft law, and not already determined tax obligations for individual private landlords.
