The Croatian government plans to increase taxes for rentiers in the tourism sector, probably from 2026, in order to make a distinction between them and accommodation providers in properties where they live, Finance Minister Marko Primorac announced.

He spoke to the press on Thursday after the government submitted a proposal to parliament to amend six laws as part of the new round of tax reforms, which are expected to come into force on 1 January next year.

The proposal includes raising the maximum tax that local authorities can set per square metre of a residential unit for short-term tourist rentals to eight euros and increasing the flat tax rate per bed.

Higher taxes in 2026

However, the proposal makes no distinction between “real rentiers” and “hosts”, i.e. those who offer accommodation in properties in which they themselves live.

Primorac said the government had accepted the proposal of Tourism and Sports Minister Tonci Glavina to make such a distinction. He said that next year the tax would remain the same for all providers of tourist accommodation, while in 2026 it would be increased only for “rentiers”.

When asked about the amount of the tax for rentiers, Primorac said it was too early to say as the matter was still under discussion.

When asked why the state does not tax its own unused properties, Primorac said that the recently presented national housing strategy provides for the use of these properties.