REAL ESTATE TAXATION IN THE REPUBLIC OF CROATIA

Abstract

Taxes are today one of the most important and most profitable revenues of both the state and
lower levels of government. Modern states are introducing more and more taxes every day,
and when we talk about property taxes, we usually think of its most common form – the real
estate tax, although the term itself is much wider. Tax systems vary from country to country,
but we can still notice that certain tax forms have a prominent role in all modern tax systems.
The aforementioned property taxes are among them, and the Republic of Croatia also follows
that path. Since real estate taxation, prompted by the amendments to the law and recently
announced reforms, is currently a topical issue, this paper will focus on the situation in the
Republic of Croatia and what these new proposals might bring. Since property taxes are not
the subject of EU harmonisation, we will also present how this issue is regulated in some
European countries.