Zagreb - While some opposition MPs on Tuesday praised some aspects of the government-sponsored amendments to six tax laws, some members of the parliamentary majority, including Dario Hrebak (HSLS), raised concerns about some other specific provisions.
HSLS will support the legislation but objects to 20% of the collected property taxes going to counties, which "neither plowed nor worked," said Hrebak. He criticized the government for deciding on such a measure, adding that counties might use the funds to hire more staff unnecessarily.
Finance Minister Marko Primorac responded that the laws are not set in stone and can be amended. "This is the first time we are discussing a new tax form; allow us to assess its effects once the law comes into effect," he told the MP.
Boris Lalovac (SDP) praised the final version of the tax reforms and inquired about the fiscal effects of the changes from the first and second readings. Primorac noted that the government cannot yet estimate the fiscal impact of the property tax, as it depends on how property owners react, such as whether they opt for long-term rentals to minimize tax liabilities.
Marijana Puljak (Centre) welcomed the introduction of property taxes on state-owned properties, expressing hope it would encourage better management of the state’s real estate portfolio.
In response to Marijan Pavliček (HS), who asked whether Croatians living abroad for the past decade would be taxed on their empty properties, Primorac confirmed that all unused, vacant, or non-rented properties would be subject to the property tax.
Anka Mrak Taritaš (Glas) questioned the fairness of exempting returnees who have lived abroad for two years from paying income tax for five years. The minister defended the measure, emphasizing that it aligns with efforts across Europe to attract skilled labor.
Despite objections from some local leaders, Primorac reiterated that property taxes would become mandatory, with municipalities and cities required to impose at least a minimal rate.
Dalibor Paus (IDS) called for a delay, urging discussions with landlords, municipalities, and cities to develop better solutions. Primorac clarified that the legislation is proceeding through the regular, not fast-track parliamentary procedure.
Hrvoje Zekanović (HDS) suggested introducing a tax on tourism income through platforms, as nearly all tourists now book via online services. Primorac agreed, stating that transitioning toward such a system is the fairest approach for taxing short-term rentals, though current conditions do not yet support its implementation.
Marin Živković (We Can!) expressed support for the property tax but questioned why vacant properties are not taxed more heavily from the outset.