This paper investigates the use of tax policies as a tool for addressing the problem of vacant properties in Croatia, with a particular focus on Split and Zagreb. It analyzes the causes of vacant properties and the historical context of abandoned residential buildings. The role of property taxes in Croatia and the European Union, and their impact on housing prices and rents, is particularly emphasized. The paper examines potential strategies within tax policies for solving the problem of vacant properties, including regulatory mechanisms to encourage the rental of properties and reduce the number of vacant units. Proposals such as tax incentives for renting vacant properties and the introduction of a tax on vacant properties are considered as ways to promote sustainable urban development and better utilization of housing resources. Additionally, the significant role of tax policies in shaping the real estate market and their potential to address the challenges posed by vacant properties are highlighted. The paper also discusses the tax structure in Split, with a special emphasis on taxes on holiday homes and consumption, as well as the assessment of taxes on vacant residential properties.