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The State Begins the Hunt for Unregistered Tenants, Who Will Pay the Price?

The state announces a crackdown on illegal apartment rentals.

 Due to unpaid taxes, the budget is estimated to lose 300 million kuna annually. Not everyone is cheating the state, but the tax inspection has no answer to the question of how much the state actually collects from rentals each year.

In the announced control of illegal landlords, the Ministry of Finance will not be able to rely on the Bureau of Statistics either. Namely, there is still no data on how many tenants and rental apartments there are. According to the first results, a total of 2,257,515 housing units have been recorded, of which 1,923,522 are for permanent residence.

The difference of about 340 thousand apartments remains undefined. However, the state currently has only goodwill, not calculations. Until the last census, the number of 150 thousand rental apartments in Croatia was mentioned.

If we calculate that the average price of an apartment is around 2000 kuna and that the tax and surtax on that amount is about 200 kuna, we estimate that this is about 265 million kuna that has been less paid in taxes, said Nedeljko Marković, president of the PRAGMA association.

Many support Linić’s intentions, but fear that the budget will ultimately be filled from the already empty pockets of tenants, or that landlords will raise the minimum prices.

The cost of good government intentions could ultimately be paid mostly by young people, who make up the majority of tenants in Croatia.