Residential buildings in Croatia/ Photo: EPA/MAURITZ ANTIN

Croatia announces a major tax reform, the introduction of a real estate tax is being considered

Croatian Minister of Labor and Social Policy Marin Piletic said that the announced tax reform is still being harmonized, but that a consensus has been reached on its important part.

Piletic said that the Prime Minister and certain ministers presented to the partners the announcement of tax reform and further tax relief for citizens, most likely from January 1, 2025. And tax reform is still being reconciled. "The package of a series of laws that are being changed very soon will come out first for a public debate," Piletic said.

What is new is that the real estate tax will be part of the tax package.

"The real estate tax will be one of the parts of the tax reform, given that there is a whole range of taxes, the idea is to offer a more complete solution with a key goal around which there has been a consensus with social partners, employers and unions for a long time, which is lower the tax burden on labor and shift that burden to property,” he said.

He pointed out that there is a consensus in the parliamentary majority to go in the direction of introducing a real estate tax and that it no longer applies only to vacation homes, but also to all real estate that is not primarily used for housing. We want to send a clear message that in this term of the Government, affordable housing is a priority," he stressed. When asked how the current real estate tax proposal differs from the previous one, the minister said it is drastically different. "There is no substitution of the utility fee for the tax, but a completely different taxation methodology," he added, Klix.ba reported.

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