Will sojourn tax increase in 2019?

Will sojourn tax increase in 2019?

Ministry of tourism has recently announced a public discussion (ending July 21, 2018) about its intention to raise sojourn tax in 2019. Sojourn tax is charged for every realized overnight stay (equally domestic and foreign citizens) to:

- persons who use accommodation services in an accommodation facility providing accommodation and food services in a tourist municipality or town in which they do not have residence,

- passengers who stay overnight at a nautical tourism vessel (charter or cruise boats),

- persons who provide accommodation services in a household,

- owners of a holiday house or apartment in a tourist municipality or town, which is not an accommodation facility, for themselves and for all persons staying overnight in that house or apartment,

- owners of vessels which are not nautical tourism vessels, for themselves and for all persons staying overnight on that vessel for tourist purposes.

There is no rule on whether this tax is charged above the accommodation rate or included in it (as with most of hotels and private rentiers).

The amount of tax depends on the area and accommodation type. Proposed increase would, in example, mean a new sojourn tax of 10 kuna per night instead of 8 kuna for overnight stays in hotels and similar accommodation properties in the A-location (coastal places).

Ministry is trying to justify the proposed increase with nothing else but comparison to the competitive Mediterranean tourist destinations who are charging more than Croatia does (i.e. Barcelona 0.45 to 2 EUR, Portugal 1 to 2 EUR, Austria 0.15 to 3 EUR, Slovenia 2.5 EUR etc).

In 2017 sojourn tax was the main source of income for Tourist National Board, allowing them to get 464 million kuna, mostly from coastal Counties. Small portion of this tax ends with Red Cross and local government.

Author

Ivo Perkovic

Holding master's degree in finance, I commenced my real estate career in 2006. Ever since, I have worked for several reputable real estate agencies - as an agent, sales manager and senior consultant. I am a licensed agent and graduate valuer, proficient in English and experienced in Croatian real estate market, primarily in residential estates.

To enable comments sign up for a Disqus account and enter your Disqus shortname in the Articulate node settings.