Fiscal and property reforms in Croatia and Serbia

Croatia and Serbia are implementing fiscal and administrative reforms targeting real estate, entrepreneurship, and social welfare.

In Croatia, the Agency for Legal Property Transactions and Mediation (APN) has processed significant tax relief for first-time home buyers. As of October 2026, 5,122 requests were approved, totaling nearly 39 million euros in VAT and real estate transfer tax refunds. This support, averaging approximately 7,581 euros per family, has seen the highest volume of approvals in Zagreb, followed by Split-Dalmatia and Zagreb counties. Some applications were rejected due to property prices exceeding legal thresholds, age limits, or prior ownership.

To address potential 'tax scissors' affecting retirees, the Croatian government has proposed abolishing income tax for most pensioners by 2027. The plan aims to increase tax reductions from 50 percent to 100 percent for annual incomes up to 60,000 euros, which could exempt roughly 541,000 retirees.

In Serbia, the ‘Svoj na svome’ system has processed approximately one million property ownership registration requests in 28 weeks, a massive increase over the 320,000 cases resolved in the previous 28 years. This digital-led initiative aims to resolve long-standing issues regarding illegal construction.

Regarding entrepreneurship, Serbian procedural changes will allow those losing flat-rate taxation status to select a personal income payout model within 15 days. Additionally, new entrepreneurs must submit electronic advance tax returns (PPDG-1S) within 15 days of starting activities to determine monthly tax installments.