Financing of Cities in Croatia

After the introduction in which we will show all the options that are available in the financing of cities in Croatia, special attention will be paid on the financing of cities in Croatia through taxes. In Croatia, the lowest levels of local government are cities and municipalities. Cities and municipalities perform the tasks of local jurisdiction that directly addresses the needs of citizens. On the other hand, regional self government units are counties that are in charge of activities of regional significance. The right to local and regional self-government is defined by the Constitution of the Republic of Croatia. Law on Financing of Local and Regional Self-government prescribes ways and means of financing cities and municipalities. Local and regional governments have their own income for financing their operations and dispose of them freely. Apart from its own revenues, local governments realize and share revenues with the state budget. In the final part of the paper we will present the calculation of city as well as shared taxes and other parafiscal levies that businesses and citizens need to calculate and pay during the construction of residential and commercial buildings and launch operations of various companies. All calculations will be made on the basis of taxes that apply to the city of Split.