Utility bills, building reserve fund and municipal utility fee in Croatia: who pays when you let a flat

The most common source of misunderstandings in a lease is not the big things but the bills. The law leaves most of this to the agreement, so it is important to know what the law puts on the owner and what can be passed on to the tenant.

In short

Cost	Who pays by law	Can it be passed on to the tenant
Utility bills (electricity, water, gas, heating, waste, internet)	as the agreement says	yes, this is usual
Zajednička pričuva (building reserve fund)	owner	only as reimbursement to the owner; the owner remains liable to the building
Komunalna naknada (municipal utility fee)	owner	yes, by written agreement; the owner is jointly and severally liable
Property tax	owner	no, but long-term letting can remove it

Utility bills

The Zakon o najmu stanova (Residential Lease Act, ZNS) does not say who pays which bill. It requires the agreement to state the types of costs and how they are paid (ZNS Art. 5). In practice the tenant pays for consumption: electricity, water, gas or heating, waste collection and internet.

Two common arrangements:

• the bills are in the owner's name, and the tenant reimburses them every month,
• the tenant pays directly, and the owner checks from time to time that nothing is owed.

In both cases, record the meter readings at move-in and move-out. Read the guide to the handover record.

Building reserve fund

The reserve fund is a legal obligation of the owner (co-owner) of the flat. It is paid monthly, and the minimum is 0.54% of the benchmark construction price (etalonska cijena građenja) per m² per year (Zakon o upravljanju i održavanju zgrada (Building Management and Maintenance Act), NN 152/24, Art. 28–29).

• The agreement can provide that the tenant reimburses the reserve fund, but the owner remains liable to the building if it is not paid.
• Co-owners can set a double reserve fund for flats let to a larger number of people or let short-term.
• The owner must notify the co-owners' representative (predstavnik suvlasnika) of a change of tenant within 15 days.

Municipal utility fee

The municipal utility fee is paid by the owner. It can be passed on to the user, i.e. the tenant, only by written agreement, and even then the owner is jointly and severally liable for payment. The change of the person liable must be reported to the city or municipality within 15 days.

Property tax

Property tax (porez na nekretnine) is paid by the owner and is not passed on to the tenant. A flat that is let long-term for at least 10 months in the year is exempt from this tax. Read the guide to property tax.

How to write it into the agreement

The clearest approach is to list every cost in the agreement, who pays it and how:

• "The tenant pays the costs of electricity, water, gas, waste collection and internet according to the bills issued in the name of…"
• "The building reserve fund and property tax are paid by the landlord."
• or "Together with the rent, the tenant reimburses the landlord for the building reserve fund in the amount of €… per month."

Sources

• Zakon o najmu stanova (Residential Lease Act), Art. 5
• Zakon o upravljanju i održavanju zgrada (Building Management and Maintenance Act) (NN 152/24)
• Porezna uprava (Tax Administration): Porez na nekretnine (Property tax)