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[BUSINESS] · Croatia · 4 sources

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Rijeka proposes abolishing consumption tax for hospitality sector

The City of Rijeka administration has launched a public consultation regarding a proposal to abolish the consumption tax on alcoholic and non-alcoholic beverages in catering establishments. If approved, the change would take effect on January 1, 2027.

Currently, the city levies two local taxes: a 1.5 percent consumption tax on beverages in hospitality venues and a real estate tax of 5 euros per square meter. The proposed amendment would leave real estate tax as the city's sole local tax. The primary objectives are to reduce the administrative and tax burden on hospitality businesses—particularly small and medium-sized enterprises and craftsmen—and to simplify municipal administrative procedures.

While the move is intended to relieve taxpayers, officials noted that any impact on the final prices of catering services will depend on the individual decisions of business owners. The abolition is estimated to reduce annual municipal budget revenues by approximately 500,000 euros. The public consultation period is open until November 26.

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City of Rijeka · Rijeka

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