Property Investment Croatia | Real estate taxes in Croatia

Posted on July 29, 2012

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We give you the answers to questions concerning purchase of real estate in Croatia.We have plenty of legal acts and laws concerning traffic of real estate and in connection with real estate in general. It is our intention to give answers on issues that might be of interest to you. Feel free to contact our agency directly in order to find out more.

Are foreigners allowed to buy and sell real estate in Croatia?

Citizens of the European Union are equal to domestic population when it comes to buying real estate. Others need consent from the Ministry of legal affairs and the Ministry of foreign affairs. These are issued to citizens of those countries Croatia signed a contract on reciprocity with. Otherwise, they need to have a business registered in the country.

When it comes to selling, foreigners sell real estate in Croatia with no legal problems.

What is the real estate purchase tax in Croatia?

Croatia has a unified tax rate of 5% for all types of real estate and respective transactions. The tax is defined based on the price of the real estate in the contract and the value estimate by the tax authority. Tax on purchase of real estate is paid by the customer or the seller on behalf of the customer.

When must this tax be paid?

After conclusion of the sales contract the customer is obliged to register the purchase at the authorized tax authority within 30 days. The customer is obliged to pay real estate purchase tax within 15 days from the day of reception of the decision received from the tax authorities. If this tax is not paid within this term, interest are charged for every day of delayed payment.

Does the seller need to pay taxes?

No. Only in the case the real estate is sold prior to the expiration of three years after it has been purchased and if its sold at higher price than purchased. In such cases the seller has to pay a 35% income tax on the difference in value of the real estate increased by local taxes.

Is it possible to verify and conclud the contract abroad?

Yes. In such cases it is best to have it verified in a Croatian embassy or consulate. If you verify such a contract before a public notary, then this verification has to be translated into Croatian by an appointed interpreter.

Is it possible to pay the tax in foreign currency?

The tax is to be paid by bank or post office money transfer. The amount is converted into Kunas at the middle exchange rate by the National bank of Croatia at the day of payment.

via Property Investment Croatia | TRASA Real Estate Croatia – Part 8.

Posted in: Croatia