A strong increase in the number of changes in residence in March: ‘This is due to real estate tax’

In March this year, the number of citizens who changed their place of residence in Croatia jumped 73 percent compared to the same month last year, the latest data from the Ministry of the Interior shows.

A total of 18,624 citizens requested a change in residence, while in March 2024 the number of these requirements was 10,792. Increasing changes in residence is associated with new tax rules, which motivated many citizens to report a new address to free themselves from real estate tax.

– It is believed that real estate tax is one of the main sources of such mass changes in residence in March. However, what should be emphasized here is that the application of residence without physical settlement and residence at that address is not enough for the purposes of exempting from the payment of real estate taxes – said the president of the Croatian Association of Tax Advisers Ivan Cevizovic for for RTL today.

Illustration for a new real estate tax |

Photo: Emica Elvedje/Pixsell

I think we are going in the right direction, Prime Minister Andrej Plenkovic said to increase the number of changes in residence and the introduction of real estate taxes as part of a wider tax reform. We have transformed the tax on resting homes into a real estate tax with a range of 0.5 to 8 euros per square meter, depending on the decisions of local self -government units, he adds, noting that the goal is to be acted in accordance with the law and to encourage the long -term rental instead of short -term.

By the end of June, a final number of citizens were expected to apply for release from real estate tax. However, the final figures and the amount of taxes that will be charged will only be known in the fall, after the Tax Administration processes all applications.

– The penalty that would be pronounced, and could be imposed if someone reported false facts, is prescribed by the Law on Local Taxes and are up to 6630 euros – said Cevizovic.