Increased Tax Rates
One of the main changes is the increase in tax rates on income from properties. The tax on rental income will increase from 10% to 12%. For income from property rights and property sales, the tax rate is increasing from 20% to 24%.Implications for Property Owners
For property owners, these changes mean increased tax burdens, especially concerning rental or sale of properties. Increased tax rates may lead to higher costs for property maintenance and management, which could impact rental prices and property values.Property Tax Increase
In addition to the increase in tax rates on property income, specific changes regarding property tax itself have been introduced. New regulations set higher tax values for various types of properties, including residential, commercial, and industrial properties. These measures aim to increase tax revenues from the property sector and promote more efficient utilization of property assets. The increase in property tax may also incentivize owners to better maintain and utilize their assets, potentially leading to an overall improvement in the quality of the property market in Croatia.
These changes are part of a broader strategy by the Croatian government to improve the tax system and increase tax revenues, which will be used to finance various public services and infrastructure. For more information and details about changes in tax regulations, visit KPMG, Crowe Croatia, or Expat in Croatia.
