Government Shelves New Property Tax Bill

The proposed new Property Tax bill, which was set to take effect from 1 April, has been put on the shelf by the Croatian government.

Speaking on Croatian TV last night, Minister of Foreign Affairs Vesna Pusic confirmed that the new tax will not be introduced.

“Property tax will not happen in 9 days,” said Pusic when asked what is happening with the new proposed Property Tax bill which was present at the end of last year.

Croatia’s Minister of Finance Slavko Linic presented the new bill which would see a flat tax rate of 1.5% on 70% of the appraised value of a property introduced on all real estate in Croatia, replacing the current council utility charges. Tax breaks, up to a maximum of 95 percent, would be given for property owners who live in their properties, rent them out or use them for another purpose such as business.

There would be no tax breaks for those who have homes that are not used, and the 1.5% tax rate would come into play for those real estate owners. Linic said at the time of presenting the new bill that the wealthy would have to pay more under the new tax, but that Croatia needed to change.

If the new Property Tax bill is shelved permanently remains to be seen.