Croatia could collect more than €12 million annually by introducing a tax on digital advertising revenues generated by major technology companies such as Google and Meta, according to a proposal by the Croatian Association of Digital Publishers (HUDI).
The proposal is based on Austria’s model, introduced in 2020, under which large online platforms pay a 5% tax on advertising revenue generated in the country. Austria collected approximately €43 million in the first year, with annual revenues exceeding €100 million by 2023. HUDI estimates that a similar system could generate more than €12 million for Croatia each year, with the amount expected to increase. According to the association’s HUDI AdEx 2025 research, major technology companies generated more than €250 million in digital advertising revenue in Croatia in 2025.
The proposal comes amid growing financial pressure on traditional media, as television, radio, print and online publishers face difficulties adapting their business models to the digital advertising market. The sector is also dealing with declining public trust, with recent research indicating that 52% of Croatian citizens deliberately avoid news. Social media and video platforms are increasingly becoming sources of information, while concerns about misinformation and AI-generated content have intensified calls for stronger support for professional journalism.
The idea of introducing a digital tax was included in public consultations on Croatia’s Action Plan for the Development of Culture and Media for 2025–2027, with the Ministry of Culture and Media agreeing to analyse the proposal. However, HUDI acknowledges that the likelihood of adopting the Austrian model remains relatively low, partly because Croatia is seeking OECD membership and is involved in broader international discussions on taxing the digital economy. It also points out that tax revenues would initially flow into the state budget rather than automatically being allocated to media organisations.
The European Commission has said that decisions on introducing such a tax, setting its rate and determining how the proceeds are used fall within the responsibility of individual member states, provided the arrangements comply with EU law. It also noted that Austria’s support scheme for the digital transformation of media had been approved under EU state aid rules, while any similar Croatian model would require a separate assessment.
The Croatian Journalists’ Association (HND) has also advocated for a digital tax, proposing that the revenue be channelled into a dedicated fund supporting professional journalism. It argues that funding should be distributed according to criteria safeguarding editorial independence, professional standards, journalists’ employment and investment in original content.
