Finance Minister Marko Primorac on Tuesday explained that the latest amendments of tax legislation would not introduce any new tax on real estate.

During question time in the national parliament, Josip Boric of the ruling HDZ party asked about this matter, and Minister Primorac said that no new tax would be added. Primorac explained that in 1994, a tax on holiday houses was introduced and owners of such properties were required to pay between 5 and 15 kuna  (€0.66 to €1.99) per square metre.

The proposed changes make it possible for local authorities to increase the amount up to €5 per square metre, however, it does not mean that the authorities are supposed to increase the amount. They can but they do not need to do that, said the minister.

Also, a flat tax rate between 150-1,500 kuna (€20 to €200) has been paid for beds for rent for visitors. It remains in force, he said.