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Property Tax in Croatia: Everything You Need to Know

By Euro Tours, On

As of January 1, 2025, the property tax has been replaced by the holiday home tax. This new tax law applies to all types of properties, including residential and commercial spaces, and clarifies who is responsible for payment and what exemptions and reliefs are available.

What is subject to taxation? Properties include:

  • Residential buildings

  • Residential parts of mixed-use buildings

  • Apartments and other independent living spaces

Who pays the property tax? Property tax is paid by the owners of the properties, whether they are individuals or legal entities, domestic or foreign nationals. In some cases, tenants may be responsible for the payment if stipulated by the contract.

Tax Amount The property tax is calculated based on the usable area and ranges from 0.60 to 8.00 euros per m². The amount depends on factors such as location, age, and special features of the property.

Exemptions and Reliefs There are situations where the tax is not paid, including:

  • Properties used for permanent residence

  • Properties in long-term rental

  • Family homes and apartments owned by socially disadvantaged citizens

Deadlines and Reporting Property owners must report any changes affecting the tax amount by March 31 of each year. If the property is rented out, proof of this must also be provided.

How to prepare your property for taxation?

If you rent out a property or use it for business purposes, it is important to report the property details on time. For properties used for permanent residence, the tax will not be applicable.

The property tax law comes into effect in 2025, so it is crucial that all property owners understand their obligations and ensure they meet all legal requirements to avoid potential fines. Be sure to contact the tax authority for additional information and specific guidelines.