Croatia Introduces Tax on Second Homes to Boost Revenue
Date
9/29/2024 4:57:30 AM
(MENAFN) Croatia plans to implement a tax on second homes, including holiday rentals along the Adriatic, to enhance budget revenue. This initiative aims to reduce short-term rentals, address the housing shortage, and stimulate residential real estate sales in the country.
Finance Minister Marko Primorac stated during a press conference in Zagreb that estimates for potential tax revenues are difficult to predict. The proposed tax legislation, pending approval from lawmakers, is expected to take effect in 2025 and will impact over 800,000 second and third homes.
The tax could range from USD0.64 to USD8 per square meter, Primorac noted. Properties that are vacant or rented out short-term as of March 31 next year will be subject to this tax. The first property owned will be exempt, along with those leased long-term for at least ten months annually, as the government seeks to curb the increase in short-term rentals seen in recent years. Currently, only a minimal tax is imposed on family vacation homes.
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