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Croatian flat-rate tax reforms spark transparency protests

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-07-29 03:48 UTC → 2026-07-30 12:26 UTC · added removed

On 27 July 2026 the Croatian government unveiled announced an anti‑inflation package that keeps leaves tax contributions unchanged for flat‑rate entrepreneurs earning up to €40,000, €40,000 unchanged, while raising payments for higher brackets the sixth‑bracket contribution by €1,336 (30 %) and the top bracket by €3,033 (66 %). Finance Minister Tomislav Ćorić defended said the measures as a changes correct fairness correction that and will scarcely affect have little effect on the state budget. The budget; the package also introduces adds a tax on excessive profit margins for medium‑ and large‑size firms. The Association of Entrepreneurs (UGP) reiterated its demand for full publication of 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 is 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 changes reforms as punitive toward small, legally‑registered landlords and renters, while informal rentals remain unchecked. The Croatian Chamber of Crafts and other business groups organisations welcomed the decision to leave keep the most‑affected brackets unchanged. UGU’s earlier calls Calls for data on commercial premises closed for fiscal irregularities and proportionate sanctioning proportional sanctions remain unresolved, keeping the issue of business‑closure transparency over business‑closure procedures central to the ongoing debate.

Versions

  1. 2026-07-30 12:26 UTC Croatian flat-rate tax reforms spark transparency protests
  2. 2026-07-29 03:48 UTC Croatian flat-rate tax reforms spark transparency protests
  3. 2026-07-28 10:20 UTC Croatian business closures transparency
  4. 2026-07-27 22:32 UTC Croatian business closures transparency
  5. 2026-07-27 07:08 UTC Croatian business closures transparency

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