# Croatian tax reforms spark debate and protest planning > Live situation record from CLSTR: https://clstr.news/situations/croatian-business-closures-transparency > Updated: 2026-08-29T08:55:46.000Z. Sources: 26. Developments: 5. 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 stated the changes correct fairness and will have little effect on the state budget. The package also includes a tax on excessive profit margins for medium- and large-size firms. The Association of Entrepreneurs (UGP) has criticized the lack of transparency, demanding the publication of impact analyses and the criteria used for the reforms. UGP also called for data regarding commercial premises closed for fiscal irregularities, arguing that immediate shutdowns for minor violations cause disproportionate damage. By 29 July, UGP reported gathering 40,000 signatures and planned an autumn protest, rejecting Prime Minister Andrej Plenković’s claims regarding entrepreneur silence on energy prices. In August 2026, the debate shifted toward public consultations. The Croatian Chamber of Crafts released a tax calculator to help craftsmen estimate their 2027 burdens, noting that over 77,000 flat-rate craftsmen would face no increase. However, UGP continues to object to the draft amendments, warning that higher taxes for those earning over €40,000 could increase operating costs and undermine inflation-reduction goals. Seeking a more predictable system, the Croatian Chamber of Trades and Crafts (HOK) submitted proposals to modify the legislation. HOK is advocating for higher expense recognition rates for entrepreneurs in the €40,000 to €60,000 brackets and maintaining the existing 0.40 contribution coefficient to provide relief for approximately 16,000 entrepreneurs in the highest revenue tiers. ## Claims - 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. (corroborated by 5 sources) - UGP demanded publication of impact analyses, MSP‑test results and criteria used for drafting paušalci tax changes. (corroborated by 5 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. (corroborated by 4 sources) - Finance Minister Tomislav Ćorić announced the concession for low‑income paušalci and the higher‑bracket tax increases. (corroborated by 4 sources) - SDP representative Ivana Marković criticised the tax measures, saying they penalise small legal landlords and paušalci while informal rentals remain unchecked. (corroborated by 3 sources) - UGP warned it may organise protests if its demands for transparency and participation are not met. (corroborated by 2 sources) - The tax reforms are expected to have minimal impact on the state budget. (corroborated by 2 sources) - UGP also requested transparent, uniform criteria for closing business premises and equal treatment across Croatia. (single source) - Finance Minister Tomislav Ćorić said 83.4 % of paušalci will see no change in their tax burden. (single source) ## Timeline ### 2026-08-29: Croatian Chamber of Trades and Crafts seeks tax changes for entrepreneurs The Croatian Chamber of Trades and Crafts is seeking tax relief for 16,000 flat-rate entrepreneurs earning between €40,000 and €60,000 annually. 2 sources. https://clstr.news/cluster/croatian-chamber-of-trades-and-crafts-seeks-tax-changes-for-entrepreneurs ### 2026-08-02: Croatia's proposed tax changes for craftsmen spark debate Croatia's Chamber of Crafts unveiled a 2027 tax calculator for craftsmen, while the business group UGP criticized draft tax law changes that could raise rates for higher‑earning self‑employed workers. 4 sources. https://clstr.news/cluster/croatias-proposed-tax-changes-for-craftsmen-spark-debate ### 2026-07-29: 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. 6 sources. https://clstr.news/cluster/croatian-ugp-protests-planned-tax-hikes-for-small-entrepreneurs ### 2026-07-27: 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 18 sources. https://clstr.news/cluster/croatias-ugp-urges-transparent-criteria-for-business-closures-and-public-spending ### 2026-07-24: 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. 8 sources. https://clstr.news/cluster/croatias-prime-minister-asked-to-clarify-tax-criteria-for-smallbusiness-craftsmen --- Cite as: Croatian tax reforms spark debate and protest planning. CLSTR, https://clstr.news/situations/croatian-business-closures-transparency