Zagreb and Zadar increase real estate taxes

Several Croatian cities are implementing significant increases to real estate taxes starting next year. In Zagreb, authorities have decided to raise the tax from five to eight euros per square meter, reaching the maximum amount permitted by law. Critics argue that because the tax is not based on property value, it may fail to influence market behavior, such as encouraging owners to rent out vacant apartments or curb rising property and rental prices.

Similarly, Zadar has announced a substantial increase from its previous rate of 60 cents per square meter. The new proposal includes a rate of five euros for the Peninsula area, three euros for mainland areas, and two euros for islands. While the percentage increase appears drastic, the new rates bring Zadar closer to the levels already seen in many other Croatian coastal municipalities.