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New Tax Solutions for Renters: One Solution per Contract

The Tax Administration has announced that, in order to simplify and clarify the determination of income tax from property, it will officially issue new solutions to taxpayers who earn income based on two or more rental or lease agreements for real estate and movable property. This measure thus applies to all citizens who earn income from renting or leasing real estate and movable property: from apartments and commercial spaces to garages, land, and equipment.

This change is being introduced to facilitate the overview of tax obligations and payments and to increase the transparency of monitoring individual contracts, the Tax Administration stated.

The issuance of new solutions is being carried out as part of the project ‘Digital Transformation of the Tax Administration’, which aims to improve and modernize the Information System of the Tax Administration. The existing valid solution will be abolished, and new solutions will be issued based on existing data – one separate solution for each reported rental or lease agreement.

This will allow taxpayers a simpler insight into established obligations and recorded payments, with separate monitoring of each individual rent or lease. The Tax Administration emphasizes that this process does not change the method of taxation or the amount of the tax burden – it is exclusively an administrative improvement of monitoring. This change does not apply to service providers in tourism (private renters), as they are taxed according to special regulations. Taxpayers who previously submitted information about contract terminations or annexes and have not yet received a new solution will receive it subsequently.

According to data from the Tax Administration for the first nine months of this year, 254,414 people in Croatia pay income tax from rent and lease (excluding tourist accommodation). At the end of 2024, there were 227,649 registered renters, indicating that their number increased by about 27 thousand in the first nine months of this year. This growth is likely related to the introduction of property tax, which is why more and more citizens are reporting income from long-term rentals.