April 22, 2022 - Another round of applications for the APN subsidies ends today. Croatia's State Real Estate Agency (APN) say that they have never received more applications, almost five thousand, but it remains uncertain if all of them will receive the subsidies. Demand is growing, and the rise in housing prices which is directly linked with the provision of subsidies does not help either.

As SiB writes, there aren't that many apartments, while potential buyers are numerous. For a few years now, the demand for apartments has been just as wild as the rising prices of these precious square metres. 

"For what was the price of a two-bedroom apartment a year ago, now you can only buy a one-bedroom apartment. In Zagreb, the average price per square meter is 2,300 euros, in Rijeka 1,900, in Split 3,000, and in Osijek 1,050 euros," shared Luka Prica, the owner of a real estate agency, with RTL.

Less than 24 hours remain until APN applications are closed. A record 4,870 requests were received, and funds are limited, with HRK 50 million provided.

First come, first serve
"All the applications that were submitted in time, up to the request number 4,100 if all documents are complete, will be processed and approved accordingly", said Goran Golenić, assistant director of APN.

In previous years, it never happened that someone did not receive the subsidies, but APN warns - we can not guarantee that it will be the same this time around. Those who have submitted their applications first are at an advantage. So far, 2,462 applications have been approved in this round.

"When the funds are spent, we will inform the competent authorities and make decisions on further actions accordingly," Golenić claims.

Better days with cheaper square metres, it seems, are not in sight.

"We are entering the Eurozone, inflation has been announced, we are witnessing an increase in the prices of materials and labor - we cannot expect a drastic drop in prices," Prica claims.

Surely, the new round of APN subsidies announced for next year will come in handy for many.

For more, check out our lifestyle section.

ZAGREB, 9 March 2022 - The government on Wednesday adopted a set of measures to buffer energy price hikes worth almost HRK 5 billion, including a bill of amendments to the VAT Act, decisions to subsidise gas prices for households and small businesses, and once-only aid to pensioners and the socially vulnerable.

The measures enter into force on 1 April, whereby the government is directly helping households and businesses, Prime Minister Andrej Plenković said.

The measures are aligned with European Commission guidelines which allow for regulating prices in case of need and justifiable circumstances, he added.

VAT cuts

The government sent amendments to the VAT Act to parliament for fast-track adoption, under which VAT would be reduced from 25% and 13% to 5% on children's food, edible oils and fats, butter and margarine, live animals, fresh meat and fish, vegetables, fruit, eggs, seedlings, fertilisers and pesticides, food for animals, and tickets for concerts, sporting and cultural events.

The government also proposed a 13% VAT rate on natural gas and heat deliveries, firewood, and menstrual products, among other things, and a 5% VAT rate on natural gas deliveries from 1 April 2022 to 31 March 2023.

The VAT cuts are estimated at HRK 2.1 billion.

Gas subsidies for households and businesses

To buffer the impact of gas price hikes, the government decided to subsidise the price for households with HRK 0.10/kWh as well as the price for microbusinesses and SMEs, whose average annual consumption is up to 10GWh, with HRK 0.15/kWh.

The cost of the subsidies is HRK 1.2 billion and will be financed by selling greenhouse gas emission units at an auction in Croatia. The government estimates that the revenue from the sale of those units by 2025 will amount to HRK 4.72 billion.

The government also decided to release 22,000 tonnes of diesel on the market to be sold at market prices.

Measures for the socially vulnerable

At the moment 51,000 persons eligible for a minimum allowance and 40,000 persons eligible for disability benefits and members of their households receive HRK 200 a month for their electricity bills. Today the government decided that 5,700 elderly persons eligible for the national allowance will also be entitled to this monthly allowance.

As of 1 April, this HRK 200 allowance will be doubled to cover gas bills. The annual cost of this measure will be HRK 300 million.

The government also adopted a decision on a monthly allowance, ranging from HRK 1,000 to 4,000, for 1,100 providers of social services for 40,000 persons.

Additionally, 2,570 foster families and 6,000 beneficiaries will be entitled to a HRK 400 monthly allowance, which measure will cost HRK 33 million.

The government tasked the Environmental Protection and Energy Efficiency Fund with paying HRK 1.2 billion from the auction sale of emission units into the state budget to be used as direct support to energy end buyers.

Energy allowance for pensioners

The government adopted a decision on a once-only allowance for 721,000 pensioners whose monthly pension is up to HRK 4,000.

Those whose pensions are up to HRK 1,500 will receive a HRK 1,200 allowance, those with pensions between HRK 1,500 and 2,000 will receive HRK 900, those with pensions between HRK 2,000 and 3,000 will receive HRK 600, and those with pensions between HRK 3,000 and 4,000 will receive a HRK 400 allowance. The cost of this measure totals HRK 480 million.

Aid to farmers and fishermen

The set of measures also envisages aid for 88,000 family farms estimated at HRK 200 million and for fishermen in the amount of HRK 75 million. This aid is subject to approval by the European Commission.

(€1 = HRK 7.5)

For more information on this, check out our dedicated politics section.

ZAGREB, 18 Feb 2022 - Prime Minister Andrej Plenković said on Friday that the package of measures for cushioning the electricity and gas price rises, worth HRK 4.8 billion, was a wise state intervention that would, as of 1 April, protect citizens and a large part of the economy from rising energy prices.

"This way, we are showing the government's readiness to make a wise intervention that benefits citizens in key moments," Plenković said, talking about the package of measures at a government session.

The measures apply to all citizens, a large part of the economy, especially micro and macro businesses, and special measures have been introduced for socially vulnerable groups, as well as for pensioners, farmers, and fishermen, the prime minister said.

"In addition to the caps on the prices of petroleum products, we have made a good, clear framework which also involves tax relief, social transfers, and subsidies, and which will cushion the price rise as of 1 April," he said.

The prime minister also said that over the past two days, based on well-prepared documentation for the European Commission, it had been decided that the deadline for using the money from the European Solidarity Fund for earthquake relief in Zagreb would be extended for another year, from June 2022 to June 2023, to overlap with the deadline for the use of money allocated for the earthquake in Banovina.

He said that he now expected "intensive work and dynamics of the reconstruction process" in order to use that money and engage other sources and ensure as soon as possible that the reconstruction process would accelerate.

For more, check out our politics section.