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[SITUATION] · [ACTIVE]

3 clusters · 23 sources · 5 days · First seen 7 days ago · Last updated 2 days ago

Categories: BUSINESS · POLITICS

Croatian flat-rate tax reforms spark transparency protests

Entities: Udruga Glas poduzetnika (UGP) · Croatian Government · City of Bjelovar · Ivana Marković · Tomislav Ćorić

Overview

On 27 July 2026 the Croatian government announced an anti‑inflation package that leaves tax contributions for flat‑rate entrepreneurs earning up to €40,000 unchanged, while raising the sixth‑bracket contribution by €1,336 (30 %) and the top bracket by €3,033 (66 %). Finance Minister Tomislav Ćorić said the changes correct fairness and will have little effect on the state budget; the package also adds a tax on excessive profit margins for medium‑ and large‑size firms.

The Association of Entrepreneurs (UGP) demanded that the government publish the impact analyses, MSP‑test results and the criteria used to draft the reforms, warning it could organise protests if transparency was not ensured. By 29 July 2026 the group announced it had gathered roughly 40,000 signatures and planned a street protest for the autumn, rejecting Prime Minister Andrej Plenković’s claim that entrepreneurs are silent about energy‑price limits. UGP argued that recent tax hikes—30 % to 66 % for higher‑income flat‑rate operators and minor landlords—add to existing tourist taxes and property levies without improving public services.

Opposition SDP MP Ivana Marković criticised the reforms as punitive toward small, legally‑registered landlords and renters, while informal rentals remain unchecked. The Croatian Chamber of Crafts and other business organisations welcomed the decision to keep the most‑affected brackets unchanged. Calls for data on commercial premises closed for fiscal irregularities and proportional sanctions remain unresolved, keeping transparency over business‑closure procedures central to the debate.

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 5 SOURCES] The tax changes are part of an anti‑inflation package announced in May 2024 that also includes measures on short‑term tourism rentals and profit‑margin taxes. (existing)
[● 5 SOURCES] UGP demanded publication of impact analyses, MSP‑test results and criteria used for drafting paušalci tax changes. (existing)
[● 4 SOURCES] Higher tax brackets for flat‑rate entrepreneurs will increase contributions by €1 336 (30 %) for the sixth bracket and €3 033 (66 %) for the highest bracket. (existing)
[● 4 SOURCES] Finance Minister Tomislav Ćorić announced the concession for low‑income paušalci and the higher‑bracket tax increases. (belongs)
[● 3 SOURCES] SDP representative Ivana Marković criticised the tax measures, saying they penalise small legal landlords and paušalci while informal rentals remain unchecked. (existing)
[● 2 SOURCES] UGP warned it may organise protests if its demands for transparency and participation are not met. (existing)
[● 2 SOURCES] The tax reforms are expected to have minimal impact on the state budget. (new)
[○ 1 SOURCE] UGP also requested transparent, uniform criteria for closing business premises and equal treatment across Croatia. (UGP statement)
[○ 1 SOURCE] Finance Minister Tomislav Ćorić said 83.4 % of paušalci will see no change in their tax burden. (new)

Timeline

2 days ago

[BUSINESS] 2 sources
Croatian UGP protests planned tax hikes for small entrepreneurs
Croatian entrepreneurs' group UGP denounces tax hikes for small businesses, cites rising contributions up to 66%, and announces an autumn protest after gathering 40,000 signatures.
4 days ago

[POLITICS] 18 sources
Croatia flat-rate entrepreneurs tax reforms spark political backlash
Croatia’s anti‑inflation package reforms flat‑rate entrepreneur taxes: most see no rise, higher brackets face €1,336‑€3,033 hikes; opposition MP Ivana Marković decries penalties on small landlords; UGP calls‑on
7 days ago

[BUSINESS] 8 sources
Croatian business group UGP seeks clarity on tax tiers and shop closures
Croatian business association UGP demands the government disclose criteria for classifying sole traders and justify the closure of shops over minor fiscal violations, seeking data and proportional penalties.

Sources

24sata.hr · bizlife.rs · dalmacijadanas.hr · dalmatinskiportal.hr · dubrovnikportal.com · dulist.hr · financije.hr · glas-slavonije.hr · glasistre.hr · index.hr · lider.media · novac.jutarnji.hr · oslobodjenje.ba · poslovni.hr · prigorski.hr · teklic.hr · telegram.hr · teleskop.hr · tportal.hr · trend.com.hr · vecernji.hr · vpz.hr · zadarskilist.hr

This summary has been updated 4 times: see revision history