Why a record number of Croatians changed their address last month

Omiš, Croatia

A new property tax introduced in Croatia this year has led to a record number of people changing their place of residence, according to official data.

The Ministry of the Interior reported a sharp rise in changes of residence in March 2025 – a total of 18,624.

This is a 73% increase compared to the same month last year, when 10,792 changes were recorded.

This spike in movement is largely believed to be linked to the introduction of the new property tax, which came into effect at the start of the year, Lider.hr writes.

Many citizens appear to have adjusted their registered residence ahead of the 31 March deadline, which was the cut-off for declaring relevant data for tax purposes.

Under the revised Law on Local Taxes, property tax is not applied to homes that are used as a person’s permanent residence.

The tax is calculated based on the status, purpose, and ownership of a property as of 31 March of the tax year.

This has prompted many to officially register their address at the property they actually live in — which, until now, may not have matched their official documentation.

Some may also be trying to avoid paying tax on a second property by declaring a new primary residence.

As for how many people submitted the necessary tax forms by the end of March — and how many will ultimately be liable to pay the new property tax — remains to be seen.

The full impact of the tax, both socially and financially, will only become clear after more time has passed and the data has been thoroughly analysed.