Assets are one of the best indicators of individual wealth and it is impossible to conceal them. Because of this fact, in the past times, the assets were ideal to become a tax base. A property tax is one of the oldest forms of taxation in existence and is still used today in modern tax systems. In theory, there are various arguments for taxing property and the main reason seems to be wealth taxation for individuals based on what their assets are. However, at the present time these arguments are less convincing due to the property income tax as well as tax on profits, that is, income tax. General property tax does not exist in Croatia, but the Croatian tax system uses several individual property taxes (real estate transfer tax, tax on motor vehicles, tax on vessels, tax on gifts and inheritance, tax on second homes, corporate income tax, tax on the use of public land) whose incomes are mainly profit of local and regional self-government. European Union countries are taxing their citizens property each in its own way, but the most common form is taxation of property to the tax on real estate. Even though in almost all modern taxation systems the property taxes are present, according to their financial strenght, property taxes are lower in the tax forms of meaning, as is the case with Croatia. Introduction of property taxes puts a further strain on already complex modern tax systems. In conclusion, more effort is needed to make dominant forms of taxation (income tax and sales tax on goods and services) more effective in fundraising and in the redistribution of the tax burden by various tax reforms.