The Croatia Government plans to tax second homes, including holiday rentals along the Adriatic, to boost budget revenue and address housing shortages. The tax will apply to over 800,000 second and third homes, with exemptions for primary residences and long-term rentals. This move aims to reduce short-term rentals and revive the residential real estate market.
Digital methods will be crucial in tracking properties and managing tax enforcement. Despite past resistance to property taxes, the government is working to implement this measure alongside future income tax reductions to balance the economic impact.
