Property tax in Croatia
As of January 1, 2025, the Republic of Croatia has introduced a property tax, replacing the previous vacation home tax.
This property tax ranges from 0.60 to 8.00 EUR/m² of the usable area of the property and is calculated annually. The exact rate is determined by the city or municipality in which the property is located.
Detailed information from the tax authority can be found at the following link (translated via Google Translate): Porezna Uprava – Property Tax
Tax Calculation
The property tax is calculated based on the usable area of the property. The range is from 0.60 to 8.00 EUR per m². This depends on the location of the property and its intended use. Vacation homes and properties not used as a permanent residence are generally subject to higher tax rates.
A concrete example: A holiday apartment in Bibinje with a usable area of 80 m² and a rate of 6 EUR/m² would cost 480 EUR annually.
Why Was This Tax Introduced?
With the introduction of this tax, the Croatian government aims to reduce vacant properties and encourage more efficient use of real estate. By taxing second homes and holiday properties, the goal is to increase the availability of properties for the long-term rental market. At the same time, the tax is intended to contribute to local government budgets.
Exemptions and Reductions
In certain cases, reductions or exemptions can be requested. These include:
- Primary residences that are permanently occupied
- Agricultural buildings that are in use
- Properties in rural areas not used for tourism
More details on possible reductions can also be found on the tax authority’s website at the following link: Porezna Uprava – Property Tax Guide
Impact on Property Owners
The introduction of the property tax will primarily affect owners of vacation homes, second residences, and unoccupied properties. Especially in coastal regions where many properties are used for tourism, higher tax burdens are expected.
Conclusion
A detailed guide and the necessary form for registering your property can be found here: Porezna Uprava – Property Tax Guide