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There is still a high demand for quality apartments and houses in Croatia, even though the real estate market is recording a decline in the number of transactions and a slowdown in price growth.

According to the latest data from the Tax Administration, last year almost 29,000 apartment sales were recorded, which is a drop of 6 or 9 percent compared to the year before. Last year, the average price of a new building reached about 2,250 euros per square meter, in Zagreb it was almost 2,700 - according to the data of the State Bureau of Statistics.

This article outlines the taxation regulations concerning vacation homes as per the Local Taxes Act, where revenue benefits the respective municipality or city. This discretionary tax, ranging from EUR 0.60 to EUR 5 per square meter annually, is separate from income tax on rental earnings. An amendment clarified that income tax payments do not exempt from vacation home tax. The Tax Administration reaffirms this stance, emphasizing the distinct nature of both taxes. Exceptions exist, and verification of residency is based on actual occupancy. Owners must submit property information by March 31, with tax payment due within fifteen days of assessment.