🏠 Do I have to pay the new property tax?

With conditions

Quick answer

It depends on how the property is used. From 1 January 2025 the property tax replaced the former tax on holiday homes and is introduced by every municipality and town. The rate is 0.60 to 8.00 euros per square metre of usable area, set by each local authority; if it is not prescribed, the lowest rate of 0.60 euros applies. Crucially, you do not pay the tax on a property that is actually lived in - where a person has registered residence - nor on one you let long-term for at least 10 months a year, nor on one with no conditions for living. The myth that this is just the old holiday-home tax is false: the new tax is broader because it also hits empty flats and those in short-term tourist rental, and the top rate has jumped to 8 euros per m2. The application for exemption is filed by 31 March.

📋 The rules

From 1 January 2025 the property tax replaced the tax on holiday homes and is introduced by every municipality and town.
The rate is 0.60 to 8.00 euros per m2 of usable area; set by the local authority, and if not set, 0.60 euros applies.
It is not paid on a property in which a person with registered residence lives - that is, for permanent living.
A property in long-term rental (at least 10 months a year) is also exempt, as is one without conditions for living.
The application for exemption is filed with the Tax Administration by 31 March; 80 percent of revenue goes to the municipality or town and 20 percent to the county.

🔓 Exceptions

A property in which the owner or another person has registered residence and actually lives does not pay the tax.
A property in long-term rental of at least 10 months a year can be exempt from the tax.
A property without infrastructure and conditions for living (no utility connections) is not taxed.

⚠️ Penalties & fines

The tax is assessed and collected by the Tax Administration by decision, and anyone who does not pay it faces default interest and enforced collection. The biggest trap is the deadline: the application for exemption (for permanent living or long-term rental) is filed by 31 March, so anyone who misses it pays the tax even though they would otherwise be exempt. Because each local authority sets the rate, the bills differ drastically - Umag, for example, applies the maximum 8 euros per m2, while Rijeka, Šibenik and Makarska have kept 5 euros. The tax also hits owners who keep a flat empty or let it to tourists short-term, because they do not meet the conditions for exemption. Of the revenue, 80 percent goes to the municipality or town and 20 percent to the county, so local authorities have a direct interest in a complete and up-to-date property register.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Do I pay tax on the property I live in?

No, if a person who actually lives in the property has registered residence there, the property tax is not paid. The exemption is obtained on the basis of an application filed with the Tax Administration by 31 March.

How much is the tax per square metre?

The rate is 0.60 to 8.00 euros per square metre of usable area, and the exact amount is set by your municipality or town by decision. If the local authority does not prescribe a rate, the lowest of 0.60 euros per m2 applies.

Do I pay tax if I rent out the flat?

If you let the flat long-term, at least 10 months a year, you can be exempt from the property tax. If instead you keep it for short-term tourist rental or empty, you generally pay the tax because you do not meet the conditions for exemption.

How does it differ from the holiday-home tax?

The new property tax is broader because it hits not only holiday homes but also empty flats and those in short-term tourist rental that are not exempt. On top of that the top rate is raised to 8 euros per m2, so the bills can be much higher than before.

By when must I seek the exemption?

The application for exemption from property tax is filed with the Tax Administration by 31 March of the year for which the liability is assessed. If you miss the deadline, you will pay the tax even if you would otherwise meet the conditions for exemption.

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