Croatia raises flat tax for holiday landlords and adds 50% profit tax on large firms

Finance Minister Tomislav Ćorić announced a new anti‑inflation package aimed at cooling the economy and curbing inflation to around 2% by the end of 2027. The programme has four pillars: measures to limit state spending, adjustments to taxes and energy‑price protections, a freeze on certain administrative fees, and new tax rules for businesses and tourism operators.

The tax component raises the profit levy for large Croatian companies to up to 50 % and doubles the flat tax per bed that small accommodation providers must pay – from €70 to €140 in the second category and up to €800 for a four‑bedroom unit. The changes affect an estimated 110,000 private landlords and aim to increase state revenue while keeping pensioners exempt.

Ćorić said the goal is to “reduce the ‘heat’ in the economy and ensure those who earn more pay more,” emphasizing that the package is designed to discipline specific segments of aggregate demand without harming social partners.