Croatia — Property: Property Taxes

Key facts

• The real estate transfer tax rate is 3% and the base is the market value at the time the liability arises.
• The tax does not apply where VAT is payable on the acquisition; VAT of 25% applies to new buildings within two years of first occupancy.
• The investment portal lists capital gains from property under capital income tax at 12%; older pages with 5% transfer tax and 15% or 20% gains rates appear outdated.
• Local governments set the lower income tax rate between 15% and 23% and the higher between 25% and 33%; the Tax Administration default is 20% and 30%.

Steps

1. Research local property tax rates — The local government and/or property office should have information on the current property tax rates and how they are calculated.
2. Consult with a tax professional — A tax professional can provide guidance on how to navigate the complex property tax system in Croatia.