Zagreb City Assembly approves property tax increase

The Zagreb City Assembly has voted to increase the annual real estate tax from five to eight euros per square meter, effective January 1, 2027. The decision, supported by the Možemo! and SDP parties, aims to address a housing crisis in the city, where officials estimate approximately 55,000 apartments remain vacant.

Mayor Tomislav Tomašević defended the measure as a necessary tool for housing policy, arguing that higher taxes on empty or short-term rental properties will encourage owners to enter the long-term rental market and increase housing supply. The increase is expected to generate an additional six million euros for the city budget.

Opposition members, including representatives from HDZ-DP-HSU and the Drito party, criticized the move as an attack on private property rights and an unjustified tax hike. They argued that the city administration has failed to make housing more affordable despite its mandate.