Zagreb - The Croatian parliament will discuss on Thursday the government's proposal to extend the reduced 5% VAT rate on deliveries of natural gas, firewood, pellets, briquettes, wood chips, and district heating until the end of March 2026.
This is regulated by a bill of amendments to the VAT Act, which the government submitted to parliament to be adopted in an urgent procedure.
"In this way, we want to ensure affordable prices for those energy sources for citizens. This is a measure aimed at protecting citizens and households," explained Finance Minister Marko Primorac.
The government estimates that this measure will reduce state revenue from VAT by around €53 million per year, or by €39.75 million for the period from 1 April to 31 December 2025, and by €13.25 million for the period from 1 January to 31 March 2026.
MPs will also express their opinion on the final text of the amendments to the Act on Ownership and Other Real Rights, which would equalise the rights of real estate buyers from Croatia and OECD countries.
These amendments prescribe the manner in which citizens and legal entities from EU member states, contracting states of the European Economic Area, OECD or countries acceding to the Code of Liberalisation of Capital Movements and the Code of Liberalisation of Current Invisible Operations, acquire the right of ownership in real estate in Croatia on the date of Croatia's accession to the OECD.
"Citizens and legal entities of these countries acquire the right of ownership under the assumptions that are valid for the acquisition of ownership rights for Croatian citizens and legal entities with headquarters in Croatia, that is, for the acquisition of ownership rights in real estate in Croatia, they do not need the consent of the Minister of Justice," said Minister Damir Habijan.
He said that for 36 of the 38 OECD member states there is already the possibility of acquiring ownership rights in real estate in Croatia, according to the principle of reciprocity.
Reciprocity has not been established for the only two member states, Mexico and Costa Rica, because so far there have been no requests submitted for the acquisition of ownership rights from legal or natural persons from these countries.