Government Introduces New Tax Obligation for Apartment Renters

In a new package of tax changes, the government has quietly introduced a new tax obligation for apartment renters. In addition to the flat fee they currently pay per bed, they will also have to pay a tax on vacation properties, writes 24sata.

Under current regulations, it was unclear whether renters were subject to this tax, which was introduced for citizens with properties where they occasionally reside. Now, starting January 1 of next year, apartment owners will pay both flat fees per bed and a tax on vacation properties.

The tax on vacation properties will range from 0.6 to 5 euros per square meter of property, with the exact amount determined by cities and municipalities. The maximum tax per square meter had previously been 1.99 euros, and neither Prime Minister Andrej Plenković nor Finance Minister Marko Primorac highlighted the new tax obligation for renters at the government meeting.

This change has been confirmed to 24sata by the Ministry of Finance.

– Those who have a vacation property pay tax on it. If they additionally rent it out, they then pay an additional tax on that income. These are separate taxes and are now clearly stipulated, the Ministry states, as reported by 24sata.

An owner of a 50-square-meter apartment with two beds had previously only paid a flat fee per bed, ranging from 19.99 to 199 euros annually. The highest rate of flat tax exists only in Zagreb, Dubrovnik, and Split, while most Adriatic locations have flat fees ranging from 30 to 50 euros. That apartment owner will pay an additional annual tax of up to 250 euros starting next year.

The president of the Croatian Association of Family Accommodation Barbara Marković was taken aback by such a change, writes 24sata. She told them that she has sent everything to the association’s lawyers and that she will respond next week.

In addition to these taxes, renters now pay three more tourist levies. Annually per bed, they pay a tourist membership fee of 5.97 euros. The annual tourist flat fee per bed ranges from 46.5 to 132.7 euros, determined by cities and municipalities. There is also a tourist fee per overnight stay of guests ranging from 1.33 to 2.65 euros, also determined by local authorities.