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Croatian tax reforms spark debate and protest planning

Updated 6 times since CLSTR started tracking revisions of this situation.

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2026-08-03 09:32 UTC → 2026-08-29 13:02 UTC · added removed

Croatian flat-rate tax reforms spark transparency protests debate and protest planning

On 27 July 2026 2026, the Croatian government announced an anti‑inflation anti-inflation package that leaves tax contributions for flat‑rate flat-rate entrepreneurs earning up to €40,000 unchanged, while raising the sixth‑bracket sixth-bracket contribution by €1,336 (30 %) (30%) and the top bracket by €3,033 (66 %). (66%). Finance Minister Tomislav Ćorić said stated the changes correct fairness and will have little effect on the state budget; the budget. The package also adds includes a tax on excessive profit margins for medium‑ medium- and large‑size large-size firms. The Association of Entrepreneurs (UGP) demanded that has criticized the government publish lack of transparency, demanding the publication of impact analyses, MSP‑test results analyses and the criteria used to draft for the reforms, warning it could organise protests if transparency was not ensured. 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 2026 the group announced it had gathered roughly July, UGP reported gathering 40,000 signatures and planned a street protest for the autumn, an autumn protest, rejecting Prime Minister Andrej Plenković’s claim 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 entrepreneurs are silent about energy‑price limits. over 77,000 flat-rate craftsmen would face no increase. However, UGP argued that recent tax hikes—30 % continues to 66 % for higher‑income flat‑rate operators and minor landlords—add object to existing tourist the draft amendments, warning that higher taxes for those earning over €40,000 could increase operating costs and property levies without improving public services. Opposition SDP MP Ivana Marković criticised undermine inflation-reduction goals. Seeking a more predictable system, the reforms as punitive toward small, legally‑registered landlords and renters, while informal rentals remain unchecked. The Croatian Chamber of Crafts Trades and other business organisations welcomed the decision Crafts (HOK) submitted proposals to keep modify the most‑affected brackets unchanged. Calls legislation. HOK is advocating for data on commercial premises closed higher expense recognition rates for fiscal irregularities and proportional sanctions remain unresolved, keeping transparency over business‑closure procedures central to the debate. On 29 July UGP confirmed entrepreneurs in the signature count €40,000 to €60,000 brackets and reiterated its call for transparent state spending, emphasizing that maintaining the proposed tax increases for small‑business operators and minor landlords would further raise contributions by 30 % to 66 % depending on income. The association scheduled an autumn protest existing 0.40 contribution coefficient to press these demands. provide relief for approximately 16,000 entrepreneurs in the highest revenue tiers.

Versions

  1. 2026-08-29 13:02 UTC Croatian tax reforms spark debate and protest planning
  2. 2026-08-03 09:32 UTC Croatian flat-rate tax reforms spark transparency protests
  3. 2026-07-30 12:26 UTC Croatian flat-rate tax reforms spark transparency protests
  4. 2026-07-29 03:48 UTC Croatian flat-rate tax reforms spark transparency protests
  5. 2026-07-28 10:20 UTC Croatian business closures transparency
  6. 2026-07-27 22:32 UTC Croatian business closures transparency
  7. 2026-07-27 07:08 UTC Croatian business closures transparency

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