Property tax has been an unavoidable topic in recent months. It pertains to residential properties, including apartments, houses, and other spaces intended for living. Economic buildings used for housing agricultural machinery, tools, and other equipment, as well as properties designated as business spaces according to the municipal fee decision, are not subject to this tax.
– The tax does not depend on the market value of the property. However, if you can prove (expert assessment, photographs, video, documentation of utility disconnection) that the property is in a dilapidated state or is uninhabitable, you may qualify for an exemption or reduction of the tax – emphasize Zagreb lawyers Dora Ljevar and Danijel Pribanić.
If you are already paying a municipal fee for the apartment in which you or your immediate family members live, and you can prove this with a residence registration and utility bills, there is no need to report to the Tax Administration. However, if you receive a tax payment decision, you can file an appeal citing relevant facts.
Obligation to report by March 31, 2025. You are required to report to the competent tax authority:
- change in the area of the property,
- change of purpose (e.g., from tourist rental to long-term rental),
- renting out the property if the rental agreement has not been reported to the Tax Administration,
- if the property is uninhabitable (no connections, in ruins, etc.).
Tax revenue is divided so that 80 percent goes to the city or municipality, and 20 percent to the county in which the property is located. Tourist cities, such as Umag, Poreč, Rovinj, and Preko, have higher tax rates, while larger cities like Zagreb and Rijeka have relatively high but standardized rates. Residents of smaller surrounding areas have lower tax rates than those with vacant apartments in larger centers. Dubrovnik, Opatija, and Cres use rate ranges, meaning that different parts of the city may be taxed at different rates.
