Income tax on renting out a flat in Croatia in 2026
Checked: 13 October 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.
If you let a flat long-term as a private individual, the rent counts as income from property. The tax on it is fixed, does not depend on the city, and is paid monthly under a tax assessment notice from the Porezna uprava (Tax Administration).
How much the tax is
| Tax rate | 12% |
| Flat-rate expenses | 30% of the rent (deducted automatically, no receipts needed) |
| Effective burden | 8.4% of the rent received |
| Surtax (prirez) | not payable since 1 January 2024 |
The tax base is the rent received minus 30%. The 12% rate is applied to that base. The rate is set by law and is the same in every city and municipality (Zakon o porezu na dohodak (Income Tax Act), Art. 57 and 62).
Worked example
The flat is let for €800 a month.
- Annual rent: €800 × 12 = €9,600
- Flat-rate expenses 30%: €9,600 × 0.30 = €2,880
- Tax base: €9,600 − €2,880 = €6,720
- Tax 12%: €6,720 × 0.12 = €806.40 a year, or €67.20 a month
Rent is taxed when it is actually received (cash basis). A month in which the tenant did not pay does not increase your tax.
Reporting the lease to the Tax Administration
You report the start of a lease on obrazac RPO (form RPO) (registration in the register of taxpayers) within 8 days of when you start receiving rent. You attach the lease agreement to the form. The same deadline applies to changes (new rent, new tenant) and to the end of the lease.
You can file the form:
- through ePorezna (the Tax Administration's online service), in the "Zahtjevi" (Requests) menu,
- in person at a local Tax Administration office,
- by post.
You cannot file it by e-mail.
If the lease agreement is certified by a javni bilježnik (notary public) (solemnizacija, notarial certification), the notary sends it to the Tax Administration within 30 days and your registration counts as done.
If you let someone use the flat without an agreement (other than members of your immediate family and household), the law assumes you are earning rent, and the tax can be assessed even without a registration.
How the tax is paid
After you register, the Tax Administration issues a rješenje (tax assessment notice) with the monthly amount of tax. The tax is paid by the last day of the month for the current month. You do not pay advance amounts that you calculate yourself; the amount is in the assessment notice.
If the flat is let to a company, the company does not calculate or pay the tax on your behalf. You still pay the tax yourself, under the assessment notice.
When these rules do not apply
- Receipts above €60,000 a year (the VAT threshold): rental income is then assessed as income from self-employment, from business books, at the rates of the city you live in.
- Tourist (short-term) letting is taxed differently, at a flat rate per bed. This guide covers long-term letting only.
Letting residential property is not subject to VAT.
Sources
Frequently asked questions
How much is the tax on renting out a flat in Croatia?
Income tax on rent is 12% of the rent received, reduced by 30% flat-rate expenses. In practice that is 8.4% of the gross rent. The rate is the same throughout Croatia, and surtax (prirez) has not been payable since 2024.
How soon do I have to report the lease to the Tax Administration?
Within 8 days of when you start receiving rent, on form RPO, with the lease agreement attached. If a notary public certifies the agreement, the notary sends it to the Tax Administration and your registration counts as done.
Does the tenant pay the tax if the flat is let to a company?
No. When a flat is let, the company does not calculate or pay the tax on the landlord's behalf. The landlord pays the tax under the Tax Administration's assessment notice.
When is the tax on rent paid?
Monthly, under the Tax Administration's assessment notice, by the last day of the month for the current month.
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
- Property tax and long-term letting in Croatia 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.
- 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.