Croatia plans to introduce a tax on second homes and holiday rentals in 2025 to increase budget revenue and address housing shortages.

Croatia plans to introduce a tax on second homes, including holiday rentals, to increase budget revenue, curb short-term rentals, and address housing shortages. The proposed tax, pending legislative approval, could affect over 800,000 properties, with rates between €0.6 and €8 per square meter. Exemptions apply to primary residences and long-term rentals. The initiative, set for 2025, faces historical opposition and challenges in predicting revenue outcomes.

September 29, 2024
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