- by croatiaweek
- June 4, 2026
-
in
Business
Zagreb
ZAGREB, 4 June 2026 – Representatives of Croatia’s small business community and private accommodation sector have called on the government to reconsider proposed tax changes, warning that additional financial burdens could negatively affect their operations.
The appeal comes from the Croatian Entrepreneurs Association (UGP), the Save Small Family Renters initiative (SMOi), and tradespeople operating under Croatia’s lump-sum taxation model.
They say they are prepared to consider organising protests if institutions fail to provide a concrete response in the near future.
Speaking at a press conference, representatives revealed that a petition opposing the proposed measures has attracted more than 30,000 signatures, Lider.hr writes.
UGP president Bruno Samardžić said the number reflects significant public support for entrepreneurs, tradespeople and private renters who are already facing increased market risks.
Particular concern has been raised over planned increases to the minimum lump-sum tax paid per tourist bed. Under the government’s proposals, the minimum annual amount in Croatia’s most developed tourist areas would rise from €100 to €150 per bed.
In the second category of tourist development, the lower limit would increase from €70 to €100.
SMOi president Vedran Tomić said the changes would have the greatest impact on smaller family-run accommodation providers, as well as local tradespeople and service providers who work with them.
He argued in favour of a gradual approach to tax increases, proposing that annual rises in tax obligations should be capped at 10 per cent.
Tomić also called on the Ministry of Tourism and Sport to engage directly with sector representatives, stressing that decisions affecting private renters should be made with their participation.
He said most members of the association are individuals who rely on family accommodation as either a primary or supplementary source of income, rather than owners of large tourism facilities.
Similar concerns were expressed by tradesman and lump-sum taxpayer Filip Marić, who warned that higher taxes and other charges could lead to some businesses closing, reduced investment and fewer new jobs.
He added that the lump-sum business model has enabled many people to start businesses and remain in Croatia.
While entrepreneurs and renters are seeking amendments to the proposed measures, the Ministry of Finance maintains that the changes are intended to address tax imbalances that have developed over time.
Government Announces Dialogue
Deputy Prime Minister and Finance Minister Tomislav Ćorić has announced meetings next week with representatives of the Croatian Chamber of Trades and Crafts, the Croatian Entrepreneurs Association and trade unions to discuss the impact of the proposed measures in greater detail.
Ćorić said the government must consider the broader public interest and economic stability when shaping tax policy, describing the proposed changes as relatively moderate. He said analyses and arguments supporting the decision to increase tax obligations for small renters and lump-sum tradespeople would be presented during the meetings.
According to the minister, Croatia’s taxation system for these groups would remain among the more favourable within the European Union even after the planned changes. He believes the increases should not significantly threaten their operations.
Addressing inflation, Ćorić called for responsible behaviour from all participants in the economy, saying that controlling inflation requires coordinated action by the state, businesses and other economic stakeholders.
Discussions on the proposed tax reforms are set to continue next week as government officials and sector representatives meet in an effort to narrow differences over measures that have sparked strong reactions across parts of Croatia’s entrepreneurial and tourism communities.
