Tax deadline for immovable property expires on March 31 - everything you need to know One of the novelties in the tax system in 2025 is the tax on immovable property. Tax on immovable property has been introduced as a replacement for the tax on holiday homes and includes all immovable property not used for permanent residence. This new tax obligation applies to property that is not used or intended for temporary stay, including short-term rentals. How much tax and who pays it? All local self-government units were required to determine tax rates by the end of February 2025, which vary from a minimum of 0.60 euros per square meter to a maximum of 8 euros. For example:

Zagreb and Rijeka: around 5 euros per square meter,
Split: 1.99 euros per square meter,
Umag: 8 euros per square meter (the highest possible rate).

The local self-government units were also required to publish the criteria for exemption from the tax, including social conditions, the quality of the property or the lack of municipal infrastructure. If you are the owner of a property, here's everything you need to know to avoid confusion or high fines. Who needs to report data? Owners who wish to claim exemption from the tax or report changes (area, purpose or ownership of the property) must submit a separate application by March 31, 2025. Owners who regularly pay municipal fees or rent the property under a long-term rental agreement (for at least 10 months), and this agreement has been reported to the Tax Administration for the payment of income tax from property, do not need to submit an additional application - unless they wish to exercise their right to tax exemption. To make it easier to handle applications, The Tax Administration has published a unified form for submission, available to citizens and businesses through the ePorezna system, and soon also through the mPorezna mobile app. When are you exempt from tax? The tax on immovable property does not apply if the property:

is used for permanent residence,
is rented under a long-term rental agreement (for at least 10 months),
is used by a registered host as their permanent residence,
is not suitable for living due to a lack of infrastructure (no roof, no electricity, no water) or damaged structure,
is affected by natural disasters,
is intended for public use or institutional accommodation,
is entered in business books as property intended for sale, but has not been in the books for more than six months by March 31,
is taken over in exchange for unpaid liabilities, but has not been in ownership for more than six months by March 31,
is owned by a municipality or city council,
is owned by socio-vulnerable citizens, as determined by local authorities.

How to report necessary data? In the official form, it is necessary to state:

the owner's personal data,
the address of the property,
the year of construction,
the area of the property,
the purpose of the space,
a description of any changes in use or ownership status,
reasons and documents for exemption, if applicable.

Fines for non-reporting - high! Applications must be submitted by March 31, 2025 at the latest. Otherwise, owners can expect high fines ranging from 1,000 to 6,630 euros. The Tax Administration has also announced enhanced controls on the use of properties through energy consumption and gas analysis to determine whether a property is used permanently or only occasionally. The goal is to prevent tax evasion by reporting people on the address of unused properties.

Note: This article is based on current available information and is intended solely for informational purposes. For official interpretation and individual cases, it is recommended to consult with the relevant Tax Administration. Martina Mataić Škugor Opereta nekretnine

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