Property tax and long-term letting in Croatia
Checked: 13 October 2026
Who pays property tax from 2025, how much it is per m², and how to avoid it if you let your flat long-term for at least 10 months a year.
Since 1 January 2025, Croatia has had a property tax (porez na nekretnine). It is paid on flats and houses where nobody lives permanently. If you let your flat long-term, you can be fully exempt from this tax.
Who pays the tax
The tax is paid by the owner of the property as of 31 March of the tax year. Only if the owner cannot be identified does the user pay it (Zakon o lokalnim porezima (Local Taxes Act), Art. 25).
How much it is
- €0.60 to €8.00 per m² of usable floor area per year.
- The amount is set by the city or municipality in its decision, which it can change by 15 December for the following year.
- If the city has not adopted a decision, the rate is €0.60 per m².
Example: a 60 m² flat in a city with a rate of €2 per m² a year pays €120 in property tax.
Exemption for long-term letting
The tax is not payable on a flat that is:
- used for permanent residence, or
- let long-term, for at least 10 months in the tax year.
Short-term (tourist) letting is not exempt. A flat you let to tourists in summer and leave empty in winter pays the tax.
How to prove the lease
The Porezna uprava (Tax Administration) states on its website that the lease agreement must be reported to the Tax Administration. This is the same registration you make for income tax on rent (obrazac RPO (form RPO), within 8 days). Read the guide to income tax on rent.
If the Tax Administration already has the registered agreement, a separate request is usually not needed. Facts the Tax Administration does not know about (for example a change of use or of floor area) are reported by 31 March of the tax year.
Registering your residence (prijava boravišta) at the flat's address is not enough on its own to prove permanent residence. A registered lease agreement is the safest proof.
How the tax is paid
The Tax Administration issues an annual rješenje (tax assessment notice). The tax is paid within 15 days of receiving the notice. The revenue goes to the city or municipality (80%) and the county (20%).
Sources
Frequently asked questions
Do I pay property tax on a flat I let?
No, if the flat is let long-term for at least 10 months in the tax year. Such a flat is exempt from property tax. Short-term tourist letting is not exempt.
How much is property tax?
Between €0.60 and €8.00 per square metre of usable floor area per year. The exact amount is set by the city or municipality. If it has not adopted a decision, the rate is €0.60 per m².
Do I have to apply for the exemption myself?
If the lease agreement is registered with the Tax Administration, it already has the information and a separate request is usually not needed. Facts the Tax Administration does not know about are reported by 31 March of the tax year.
Renting without spreadsheets and drawers
Rentabl keeps the lease, rent, bills and deposit of every flat in one place and shows what each flat really earns. Free for your first flat.
This guide is general information, not tax or legal advice. Croatian rules change; check the sources listed in the text before you decide.
More guides
- Income tax on renting out a flat in Croatia in 2026 How much tax you pay on renting out a flat, how it is calculated, when to report the lease to the Tax Administration and how to pay — with a worked example.
- Residential lease agreement in Croatia: what it must contain and how to register it The mandatory elements of a residential lease agreement, registering it with the Tax Administration, notarial certification, notice periods and rent increases.
- Rental deposit in Croatia: how much, how it works and when it is returned How much deposit you may ask for, what to put in the agreement, when you may keep it and how to return it without a dispute. Plus the rules being prepared in the new law.
- Utility bills, building reserve fund and municipal utility fee in Croatia: who pays when you let a flat What the tenant pays and what stays with the owner — utility bills, the building reserve fund, the municipal utility fee — and how to write it into the lease agreement.