Home » Latest » Government Scraps Incentives for Housing Savings

Government Scraps Incentives for Housing Savings

CroatiaGovernment incentives to encourage savings in building societies will be revoked in Croatia next year after debate at a government session in Zagreb on Thursday.

Government incentives will be scrapped from 1 January 2014 to 31 December 2014, although Finance Minister Slavko Linić is keen to see their permanent removal. Government incentives were initially put in place to make housing savings an attractive savings product for citizens and to building societies in the accumulated funds from which it is possible to grant a favorable long-term loans with fixed interest rates.

Currently in Croatia, government incentives amount to 15% of the amount of available housing savings per year and can be up to 5,000 Kuna (660 EUR) of available housing savings by their savers in one calendar year. This means that the maximum amount of incentives for housing savings achieved in one year is 750 Kuna, and can be acquired in only one building society.

“From 1998 to today we have paid out over one billion kuna (115 million EUR) in incentives,” said Linić on Thursday, adding that the effects of it are too low with credits of 5.5 billion kuna (700 million EUR).

“The share of savings on the total weight of the loan is only 5.5 percent,” said Linic, explaining that there are a large number of unsold apartments with 87 per cent of savers owning one property, while 17 percent own two, and therefore are not likely to purchase another but will rather save for their children.

Share on:
0 / 5 (0 votes)

Sign up to receive the Croatia Week Newsletter

Related Posts

11th dm Millennium Jump in Zadar Next Weekend

More than 3,000 people are expected to take part in a simultaneously jump into the sea from the waterfront of the Dalmatian city of Zadar next weekend. The 11th dm Millennium Jump will take place in Zadar on 29 July 2017 at 12:30 with three main jumps – legs first, a double-domino jump and a...

Record Start to June as Tourists Flood into Croatia

In just 24 hours, 300,000 foreign tourists enter Croatia as the first weekend of June sees the first big wave of tourists. A total of 1.7 million tourists visited Croatia in the first four months of 2017, 22% more than in the same period of the record-breaking 2016, and with this weekend’s flooding of visitors,...

[VIDEO] First Emirates Flight Lands in Croatia

The world’s largest international airline, Emirates, has landed its first flight in the Croatian capital on Thursday. The first Emirates’ flight landed just after 12:00 pm today to a water cannon salute and traditional Croatian folk dancers as the airline launched its brand new daily service between Dubai and Zagreb. The route, which will be...

[VIDEO] Starigrad Fortress in Omiš

Croatia’s Dalmatian coast is home to a number of impressive fortresses which were built centuries ago to keep invading enemies out. One of the really impressive fortresses is located in the former pirate town of Omiš, which is situated around 25 km from Split on the coast. Starigrad Fortress (Fortica), which sits above Omiš, was...

15 Odd World Records You Didn’t Know Croatia Holds

The Guinness Book of World Records lists world records both of human achievements and the extremes of the natural world. The Guinness World Records have become the primary international authority on the cataloging and verification of a huge number of world records. There have been over 25 records broken by Croatians or in Croatia, according...