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Croatian landlords furious over proposed tax hikes, call government move 'arrogant'
๐Ÿ‡ญ๐Ÿ‡ท Croatia /Economy & Trade

Croatian landlords furious over proposed tax hikes, call government move 'arrogant'

From Veฤernji List · () Croatian

Translated from Croatian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Croatian private accommodation providers are protesting proposed increases in flat-rate tourism taxes, calling the government's move "arrogant."
  • The government argues the measures are necessary anti-inflationary steps to stabilize the economy and ensure fairer cost distribution.
  • Providers claim the tax hikes will burden small entrepreneurs and disproportionately affect pensioners who supplement their income through rentals.

Private accommodation providers in Croatia are expressing strong discontent following the government's announcement of new anti-inflationary measures, particularly the proposed increase in flat-rate tourism taxes. This move has been met with anger, with some providers labeling it "arrogant" and a burden on small businesses.

Landlords are justifiably furious. After a significant tax increase last year, new price hikes and additional levies are arriving again.

โ€” Hana Matiฤ‡Vice president of the 'Save Small Landlords' association expressing anger over the proposed tax increases.

The government, led by Prime Minister Andrej Plenkoviฤ‡, stated that the new package aims to mitigate the effects of rising energy prices and ensure a more equitable distribution of costs. Finance Minister Tomislav ฤ†oriฤ‡ detailed changes to the flat-rate taxation for tourist accommodation, proposing an increase from 70 to 100 euros for providers in the second category of tourism development and from 100 to 150 euros in the first category.

Hana Matiฤ‡, vice president of the "Save Small Landlords" association, voiced the frustration of many, stating, "Landlords are justifiably furious. After a significant tax increase last year, new price hikes and additional levies are arriving again." She argued that the tax increases will not lower prices or solve inflation issues but will further burden small landlords already struggling with rising operational costs. Matiฤ‡ criticized the government for not implementing reforms or reducing its own expenses, instead opting for new taxes.

The state is not implementing reforms or reducing its own costs, but only introducing new taxes. The costs for landlords have significantly increased in recent years, from tourist taxes and membership fees to VAT on platforms like Booking.

โ€” Hana Matiฤ‡Highlighting the increasing financial pressures on private accommodation providers.

Providers also contend that the proposed changes lack serious analysis and are being made without concrete data on market impact. They emphasize that market demand, not the state, determines accommodation prices. The association plans to discuss their demands with both the government and the opposition, asserting that the burden of the state budget is once again being shifted to small entrepreneurs. Concerns were specifically raised about pensioners who rely on apartment rentals to supplement small pensions, suggesting that the new tax costs could negate any benefits from pension increases.

The burden of the state budget is once again being shifted to small entrepreneurs.

โ€” Hana Matiฤ‡Arguing that the government's policies unfairly target small business owners.
DistantNews Editorial

Originally published by Veฤernji List in Croatian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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