Wave of Increases in Utility Fees and Taxes Across Croatia

Starting from the New Year, residents of numerous Croatian cities and municipalities can expect an unwelcome ‘New Year’s gift’ – new price increases. Due to rising costs, numerous projects, and inflation, local government units have decided to raise their fees, particularly those related to utilities, which in some areas have not changed for over 20 years.

The most drastic example, at least in terms of percentage, is in Dugo Selo, which is raising the utility fee by 182 percent. The new fee now amounts to 1.80 euros per square meter of residential space in the first zone of Dugo Selo. For instance, for a 60-square-meter apartment, the utility fee currently amounts to 38.4 euros per year, and with this increase, it will amount to 108 euros per year, reports Dugoselska kronika.

Makarska, which has been struggling for years with the pressures of the tourist season and rising costs of maintaining the coast and public areas, is increasing the utility fee to 1.17 euros per square meter, which is almost four times higher than the previous 0.32 euros. Čazma is also raising the fee by almost one hundred percent, stating that current revenues are insufficient even for basic maintenance.

Of course, they are not the only ones. A number of cities will implement price increases starting January 1, with Ludbreg increasing the utility fee by 66 percent, and Bjelovar, which has not changed its fee for over 20 years, raising it by 58 percent.

Korčula Introduces the Most Comprehensive Measures

Residents of Đurđevac will pay 50 percent more for utility fees than they do now, while in Šibenik, the price will rise from 7.03 to 10.53 euros, which is an increase of approximately 50 percent. Varaždin is announcing a 30 percent increase, Pazin is raising the amount from 0.80 to 1 euro, and Ivanec will implement a 27 percent increase starting in 2026. After eight years, Slavonski Brod is also raising the utility fee from 0.80 to one euro. Opatija is changing its fee after 23 years, from 1.38 to two euros.

Particular attention is drawn to Korčula, which is announcing one of the most comprehensive packages of price increases. The utility fee is rising from 0.64 to one euro per square meter, while the property tax is also increasing, from the previous four to six euros per square meter of usable area. The city explains that the reason for the new burden on citizens is the change in the distribution of tax revenues, whereby 20 percent of the revenue from property tax will belong to the County from 2025, rather than exclusively to the City.

The example of Korčula shows that price increases are not limited to utility fees. In many places across Croatia, other mandatory services are also increasing that directly affect household budgets. For instance, Makarska is nearly doubling the fixed part of waste collection, from 7.90 to 14.95 euros, while the variable part is reportedly increasing by about 45 percent.

Increases in Flat Rates for Renters

Ludbreg is also introducing higher waste collection prices, so a household with a 120-liter bin and collection twice a month will pay 17.92 euros, which is more than 50 percent of the previous amount. Price increases have also been announced in Ivanec.

The price of water is also rising, with Šibenik already increasing it by 63 percent, justifying this by higher input costs, while Karlovac is announcing a 20 percent increase. The price of water is also rising in Korčula, which has decided to increase kindergarten fees as well.

In addition to all this, flat rates for renters are also increasing, for example, in Makarska, they will amount to 300 euros in the first zone, 230 euros in the second, and 180 euros in the third. In Pazin, this amount is rising from 39.80 to 100 euros per bed, while in Pula, it is increasing from 100 to 150 euros. As Korčula has announced price increases in almost all segments, it has also announced an increase in the burden on renters, although exact figures are still unknown.

Finally, Pula has decided to increase the income tax rate from 21 to 22 percent in the lower bracket, and from 32 to 33 percent in the higher bracket, while Opatija is raising the tax on holiday homes to cover part of the maintenance costs, which, according to city authorities, alleviates the financial pressure on residents.