On the first day of 2017. Croatia has got a new reform of the tax system which sets an attractive investment environment. The government voted for 16 new laws which should have a positive impact on the economy and investment in Croatia.
One of the new laws applies to real estate transfer tax which is reduced from the current 5 % to 4 %.
What is new?
Domestic and foreign buyers are equal with regard to the payment of taxes unless an international agreement provides otherwise, which means that all buyers of real estate in Croatia are obliged to pay this tax if they buy as a private person.
Another positive fact of this law is that real estate that enters into the capital of a company does not pay a real estate transfer tax of 4%
Novelty is also completely relieving citizens of the obligation to report real estate transfers to the Tax Administration. So far, the obligation to notify the competent Tax Administration had the citizens themselves, now that obligation is on notaries to inform Tax Administration.