Property Tax and Flat-Rate Income Tax for Rental Property Owners in 2025
28.2.2025
In keeping with the Local Taxes Amendment Act (OG 152/24) and the Income Tax Amendment Act (OG 152/24), effective from 1 January 2025, please be informed that the new legislation imposes new obligations.
1) Property Tax
The Local Taxes Amendment Act (OG 152/24) provides that local self-government unites are required to impose a mandatory property tax. For 2025 the City of Rovinj-Rovigno decided to apply a charge of 6.25 euros per square meter of the useable area of the property.
The competent tax authority that performs the assessment and levies property tax issues a decision on property tax for each calendar year, based on the condition, purpose and ownership of the property as established on March 31 of the tax year, and will not issue a decision on property tax if the taxpayer is exempted from the payment obligation. The taxpayer has the obligation to notify the competent tax authority by March 31 of the tax year of any change to the data essential for determining the tax obligation.
Under the Local Taxes Amendment Act (OG 152/24) property tax is not charged:
1.on the property used as permanent residence,
2.on the property rented for permanent residence under a lease agreement (if rented for a period longer than 10 months in the relevant tax period),
3.on public properties and properties intended for institutional accommodation of individuals,
4.on properties entered in company books of commercial companies as intended for sale, if less than six months have passed from the date of entry and March 31 of the year for which the tax is charged,
5.on property acquired in exchange for unpaid receivables if less than six months have passed from the date of acquisition until March 31 of the year for which the tax is charged,
6.on property which, due to a declared natural disaster in a specific tax period, is unfit for residential purposes,
7.on property for which, taking into account all circumstances, it can be determined that it is unusable for residential purposes,
8.on property owned by a unit of local government located exclusively within the jurisdiction of that unit,
9.on property which is a permanent residence of a host, according to the regulations governing hospitality activities.
For more information, please contact the Administrative Department for Finance, Budget and Revenue Collection of the City of Rovinj-Rovigno, in charge of property tax assessment, recording, oversight, charging and collection.
2) Flat-Rate Income Tax
The Income Tax Act (OG 115/16, 106/18, 121/19, 32/20, 138/20, 151/22 and 114/23) and the Income Tax Amendment Act (NN 152/24) provide that that a taxpayer who earns income from letting out houses, apartments, rooms and beds and provides Robinson accommodation to visitors and tourists and organises camping, is subject to a flat-rate income tax. According to amended law, for local self-government units assigned to Class I according to Tourism Development Index (ITR), the flat-rate tax amounts from 100.00 to 300.00 euros per bed. The City of Rovinj-Rovigno has established the flat-rate tax in the amount of 100.00 euros per bed.
The annual flat-rate income tax is determined by a tax decision issued by the competent Tax Administration Office. It is determined as a product of the number of beds, i.e. the number of accommodation units in a camp and/or camp-resort and/or Robinson accommodation, and the amount of flat tax per bed, i.e., accommodation unit, whereby the number of beds and accommodation units is specified in the decision on approval for the provision of catering services in a household.
The annual flat income tax is paid quarterly, i.e. proportionate to the number of quarters for which the tax obligation is imposed, and according to payment instructions provided by the Tax Administration. Income tax from renting out houses, apartments, rooms and beds and Robinson accommodation to visitors and tourists and organised camping is the revenue of local self-government units where the rental property or accommodation unit is located.
For more information, please contact the competent Tax Administration Office.
Note: The obligation to pay tax on income earned from renting out houses, apartments, rooms and beds and Robinson accommodation to visitors and tourists and organised camping according to income tax law, the obligation to pay other taxes based on the performance of activities and the registration of premises as non-commercial accommodation has no effect on determining the status of the property for the purpose of levying property tax.
In addition to the previously mentioned obligations, rental property owners are also required to pay an annual flat-rate tourist tax and an annual flat-rate tourist membership fee in the same amount per bed as the previous year. The flat-rate tourist tax is 70.00 euros per bed (bed and extra bed). The flat-rate tourist membership fee is 5.97 euros per bed and 2.99 euros per extra bed.
