Milivoj Špika warns pension tax abolition may not benefit Croatian retirees

Milivoj Špika, president of the Bloc Retirees Together (BUZ), has warned that the announced abolition of pension tax, scheduled for January 1, 2027, may not benefit the majority of Croatian retirees.

Špika estimates that approximately 700,000 retirees with pensions below 600 euros already do not pay this tax and therefore will see no financial gain. Another 200,000 retirees with pensions between 600 and 800 euros might see an average increase of only about ten euros.

Furthermore, Špika cautions that local government units may attempt to compensate for lost tax revenue by increasing the costs of communal services. He notes that some municipalities have already increased certain fees by more than 25 percent and anticipates rising costs for waste disposal. According to his analysis, retirees with pensions exceeding 1,000 euros would be the primary beneficiaries of the policy change.