The year 2025 brought a major change in Croatia – the new property tax (porez na nekretnine) came into effect, replacing the former holiday home tax (porez na kuće za odmor). This reform unified taxation for all properties – whether permanently occupied, used for recreation, or vacant.
1) Property Tax (porez na nekretnine)
The new tax applies to all apartments, houses, and holiday properties. Each municipality (općina or grad) sets its own rate within the legal range of €0.60–€8.00/m² of usable area per year.
- Legal basis: Zakon o lokalnim porezima
- Administration: Porezna uprava RH
- Rate range: €0.60 – €8.00/m² (set by municipalities by February 2025)
The old holiday home tax is therefore abolished – its logic has been incorporated into this new unified tax. That means even unoccupied properties (e.g., empty apartments or houses) are now subject to the standard property tax regime.
2) Communal Fee (komunalna naknada)
This is a separate fee – not a tax – that covers municipal infrastructure costs (roads, lighting, greenery, sewage, etc.). It is calculated using the formula:
B × Kz × Kn × area
Where:
- B = base value per point (e.g. €1.0–€2.5)
- Kz = zone coefficient (0.8–1.5)
- Kn = usage coefficient (1.0 for residential)
Legal basis: Zakon o komunalnom gospodarstvu
In practice, municipalities set the annual B value between €1.0 (Dubrovnik) and €2.0 (Rijeka). The national average can be considered around €1.6/m²/year.
3) Waste Collection Fee (komunalni otpad)
The waste fee consists of a fixed and a variable part (bin size, collection frequency). The legal framework is defined by the Waste Management Act (Zakon o gospodarenju otpadom, NN 84/21, 142/23) . Typical amounts range from €100 to €300 per year depending on the type of property.
4) Water, Sewerage and Electricity
Water and sewerage: regulated by the Water Services Act. Rates are set by local utilities; the average annual cost is €80–€200.
Electricity: according to tariffs from HEP ODS. A household consuming about 3,000 kWh per year pays approximately €500 annually, including fixed fees.
5) Rental, Tourist Tax and Membership Contributions
If the property is rented to tourists, the owner must pay:
- Flat-rate income tax: €100–€300 per bed per year
- Tourist tax: depending on the county (approx. €10–€50 per bed per year)
- Tourist board membership fee: approx. €5–€10 per bed per year
Legal framework: Zakon o porezu na dohodak, Zakon o turističkoj pristojbi, Zakon o članarinama u turističkim zajednicama.
6) Example of Annual Property Expenses
For the calculation, a 75% tax rate (≈ €5.5/m²) was applied, an average communal fee of B = €1.62/m², and realistic estimates for other expenses.
| Item | House 120 m² | Apartment 70 m² |
|---|---|---|
| Property tax (€5.5/m²) | 120 × €5.5 = €660 | 70 × €5.5 = €385 |
| Communal fee (€1.62/m²) | 120 × €1.62 = €194 | 70 × €1.62 = €113 |
| Waste collection | €250 | €150 |
| Water and sewerage | €150 | €100 |
| Electricity | €500 | €350 |
| Total (without rental) | ≈ €1,754/year | ≈ €1,098/year |
If the apartment or house is rented to tourists, add approximately +€300–€700 per year depending on the number of beds and local regulations.
7) Summary
- Property tax (porez na nekretnine): main annual charge, €0.6–€8/m²
- Communal fee: €1–€2/m²
- Waste, water, electricity: depending on usage, typically €600–€900/year
- Landlords: pay additional flat taxes and tourist contributions
Overall, owning a typical 120 m² house costs around €1,700–€1,800/year, while a 70 m² apartment costs about €1,100/year – regardless of whether it is permanently occupied or not.
Sources: Porezna uprava RH, Zakon o lokalnim porezima, Zakon o komunalnom gospodarstvu, Zakon o gospodarenju otpadom, Zakon o vodnim uslugama, HEP ODS, Zakon o turističkoj pristojbi, Zakon o porezu na dohodak (status as of January 1, 2025).
