Croatia: Croatian local taxes: what’s new in 2017?
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Croatia: Croatian local taxes: what’s new in 2017?


The Local Taxes Act (Act), part of the 2017 Croatian tax reform, entered into force on January 1 2017. The main change includes the introduction of the new real estate tax (not to be confused with the real estate transfer tax) and the abolishing of the company name tax. Aside from the real estate tax, no further taxes are introduced. Instead, the taxes regulated by the Law Concerning the Financing of Units of Local Government and Regional Self-Government are being transferred and incorporated into this new Act in order to align them into a more efficient and structural manner within the goals of the Croatian tax system reform.

Provisions related to the real estate tax should enter into force on January 1 2018 with contemporary abolishment of the holiday homes tax, with the purpose of avoiding double taxation of a same property with two types of property taxes. The introduction of a real estate tax also abolishes the public utility charges and the monument annuity in line with the purpose of unifying all charges related to a property (currently being charged through several different administrative procedures). However, the introduction of the real estate tax has provoked severe criticism and negative reactions and numerous controversies in the media. Therefore, the Croatian prime minister announced the postponement in the application of the tax, but without a concrete and official postponement.

Separately, the inheritance and gifts tax rate has been reduced from 5% to 4%. The tax was previously paid based on the application of a taxpayer. In 2017, the obligation of reporting the inheritance and gifts tax by the taxpayer was abolished but only in cases when such a document has been verified by a notary or issued by a competent official body.

As of January 1 2017, the company name tax is no longer due, with the purpose of releasing entrepreneurs from excessive tax burdens. All proceedings in the matter initiated before this date shall be completed according to the provisions of the Law Concerning the Financing of Units of Local Government and Regional Self-Government.


Silvia Cancedda



David Jakovljevic

Silvia Cancedda and David Jakovljevic (

Eurofast Croatia

Tel: +385 1 7980 646


more across site & bottom lb ros

More from across our site

Ulf Johannemann, who has been on trial in Frankfurt since September, was the firm’s most senior tax partner until 2019
Important dates for the Women in Business Law Awards for 2024 revealed
More than 1,000 PwC staff in China and Hong Kong engaged in improper answer sharing, it is understood
Yusuf Akhmadi of Indonesia’s Directorate General of Taxation reports on the country’s latest domestic and cross-border initiatives to clamp down on tax evasion
The new rate is a blow to Samsung, while two law firms have made significant tax hires into their respective Washington DC offices
Rema Serafi, KPMG’s first-ever female vice chair for tax, talks about breaking the mould in an exclusive interview with ITR
The metal multinational’s victory, in a case worth $12 million, continues the trend of companies coming out on top against India’s revenue department
Guy Bud and Matthew Greene from litigation firm Stewarts review a dispute on tiered partnerships, which raises questions on corporation tax and partnership law
The stagnating pay and tax bonuses cap follow slashed payouts for the deals team and business consolidation in the last month
A greater UN role has been secured after disagreements between developed and developing countries over the OECD’s influence in global tax reform