Zagreb Mayor proposes increasing real estate tax on vacant apartments

Zagreb Mayor Tomislav Tomašević has announced a proposal to increase the real estate tax from five to eight euros per square meter annually. This increase targets owners of vacant apartments or those using properties for short-term rentals via platforms like Airbnb and Booking.com, aiming to incentivize long-term leasing to address the city's estimated 55,000 empty apartments.

In addition to the tax hike, the city is releasing a list of priority candidates for social and affordable housing following a recent application process. The mayor noted that the increase is intended to combat housing speculation and stabilize rental prices.

Minister of Construction Branko Bačić responded to the announcement, stating that the move aligns with the National Housing Policy Plan. Bačić suggested that the increased revenue from property taxes should be used to reduce income tax in Zagreb, which is currently the highest in Croatia, thereby effectively increasing the salaries of local employees.