Private landlords in Croatia face new changes if the Sabor (Croatian Parliament) accepts the proposed amendments to the Income Tax Act. Under these amendments, they may have to pay a higher annual flat-rate tax per bed in the coming period.
The ruling coalition in parliament holds a stable majority, meaning the proposed amendments can be expected to pass through the legislative process without major obstacles. This would create the conditions for the implementation of new tax rules for private landlords.
The key change concerns the annual flat-rate tax calculated per bed. If the amendments are adopted, private landlords may have to pay a higher amount of this tax than before. This represents a direct financial impact on all those engaged in private letting.
In addition, the Porezna uprava (Tax Administration) will have access to all data on private landlords. This strengthens oversight of their business activities and enables a more complete record of data relevant for tax calculation.
The proposed amendments to the Income Tax Act thus cover two key aspects for private landlords: the level of the annual flat-rate tax per bed and the availability of data to the tax authority. The final decision depends on the Sabor, where the ruling coalition holds a stable majority.
