Real Estate Tax and Flat-Rate Income Tax for Rental Property Owners in 2026
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 about the following obligations.
1) Real Estate Tax
The Local Taxes Amendment Act (OG 152/24) provides that local self-government units are required to impose a mandatory real estate 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 real estate, which remains in force for the year 2026 as well.
The competent tax authority that performs the assessment and levies real estate tax issues a decision on real estate tax for each calendar year, based on the condition, purpose and ownership of the real estate as established on March 31 of the tax year, and will not issue a decision on real estate 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.
The City of Rovinj-Rovigno, as the competent tax authority, has published on its official website Javni poziv za podnošenje prijava u svrhu utvrđivanja poreza na nekretnine za 2026. godinu (Public Call for the submission of applications for the purpose of determining real estate tax for the year 2026). The application form for submitting data for the purpose of registration/exemption from real estate tax for 2026 can be downloaded via the following link: Zahtjev za dostavu podataka (Request for Submission of Data).
The real estate taxpayer is obliged to pay the tax liability within 15 days from the date of delivery of the decision determining the real estate tax.
Under the Local Taxes Amendment Act (OG 152/24) property tax is not charged:
1. on the real estate used as permanent residence (the taxpayer, upon request of the tax authority, must prove the fact of permanent residence),
2. on the real estate 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 real estate and real estate intended for institutional accommodation of individuals,
4. on real estate 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 real estate 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 real estate which, due to a declared natural disaster in a specific tax period, is unfit for residential purposes,
7. on real estate for which, taking into account all circumstances, it can be determined that it is unusable for residential purposes,
8. on real estate owned by a unit of local government located exclusively within the jurisdiction of that unit,
9. on real estate 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 real estate tax determining, recording, monitoring, collecting and enforcing.
Additionally, the Tax Administration has published explanations on its website under the section Korisnici – Građani – Nekretnine – Vlasnik nekretnine (Users – Citizens – Real Estate – Real Estate Owner), or via the link: Porez na nekretnine (Real Estate Tax).
2) Flat-Rate Income Tax
According to the Income Tax Act (Official Gazette Nos. 115/16, 106/18, 121/19, 32/20, 138/20, 151/22 and 114/23), the Act on Amendments to the Income Tax Act (Official Gazette No. 152/24), and the Ordinance on Lump-Sum Taxation of Rental and Tourism Accommodation Activities (Official Gazette Nos. 1/19, 1/20, 1/21, 156/22, 1/24 and 16/25), it is prescribed that taxpayers who earn income from renting houses, apartments, rooms and beds, as well as Robinson-style accommodation units to travelers and tourists, and from organizing campsites, shall have their income tax determined as a flat-rate amount. According to the law, for local self-government units assigned to Class I according to Tourism Development Index, the flat-rate tax amounts from 100.00 to 300.00 euros per bed. The City of Rovinj-Rovigno, by its decision in 2025, has established the flat-rate tax in the amount of 100.00 euros per bed, which remains in force for the year 2026 as well.
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 authorising the provision of hospitality services in a household. Auxiliary beds are exempt from payment.
The annual flat income tax is paid quarterly (March, June, September, December – by the last day of each quarter), 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 (according to the place of residence or habitual residence). You can also check your debt status via the ePorezna system.
More information is available on the Tax Administration website under the section Korisnici – Građani – Nekretnine – Iznajmljivači turistima (Users – Citizens – Real Estate – Tourist Renters), or via the link: Iznajmljivači turistima (Tourist Renters).
We emphasize that non-resident renters (a non-resident is a natural person who has neither residence nor habitual residence in the Republic of Croatia but earns income there that is subject to taxation in accordance with the provisions of the Income Tax Act), after obtaining a decision approving the provision of hospitality services in a household, are required to report to the Zagreb Tax Administration, Office for Non-Residents, for the purpose of regulating their tax rights and obligations.
More information for non-residents is available on the Tax Administration website via the link: Iznajmljivači nekretnina-nerezidenti (Non-resident Real Estate Renters).
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 for 2026 is 70.00 euros per bed (main bed and extra bed). The flat-rate tourist membership fee for 2026 is 5.97 euros per main bed and 2.99 euros per extra bed.
