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Finance Minister Marco Primorac confirmed the property tax was being introduced at a meeting after the government meeting, finding that properties used for living and long-term rentals would not be subject to tax.
People who rent out their property for at least ten months a year do not have to pay the tax.
People who rent out their homes short-term will have to pay taxes. The tax limit will also be increased.
– It is proposed to increase the upper and lower limits of the tax. The tax burden on short-term rentals in the tourism industry will increase, which is currently paid at a flat rate. He said that these figures are now ridiculous and such an economic model is neither good nor sustainable.
The amount that enters the VAT system is 50,000 euros instead of the previous 40,000 euros. Those who want to return to Croatia for a while will not have to pay income tax.
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