Croatia Real Estate Transfer Tax : porezna-uprava.gov.hr
Organization : Ministry of Finance, Tax Administration
Facility : Real Estate Transfer Tax
Country : Croatia
Website : https://porezna-uprava.gov.hr/en/real-estate-transfer-tax-7368/7368
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What is Real Estate Transfer Tax?
Real estate transfer tax shall be calculated and paid according to the provisions of this Act. Revenue from real estate transfer tax shall belong to the local self-government unit in the area where the real estate is located. Domestic and foreign natural or legal persons are equated with regard to payment of real estate transfer tax unless otherwise specified in an international agreement.
Taxpayer of Real Estate Transfer Tax
A person who acquires real estate in the Republic of Croatia when such acquisition is exempt from value added tax (VAT).
(1) The real estate transfer tax payer shall be the person acquiring the real estate.
(2) The real estate transfer tax payer in real estate exchange shall be each exchange participant, for the value of the acquired real estate.
(3) If an ideal (co-owned) part of the real estate is acquired, the real estate transfer tax payer shall be respectively each person acquiring the property.
Tax Base / Subject of Taxation
Tax base is the market value of the real estate at the moment when the tax liability incurred. Market value of real estate is the price of real estate that is obtained or might be obtained on the market at the moment when the tax liability incurred. The subject of taxation is the transfer of real estate. The acquisition of real estate that is excluded from VAT is not considered as the transfer of real estate.
Rate of Real Estate Transfer Tax
Rate / Amount: 3%
(1) The basis for the real estate transfer tax is the market value of the real estate at the moment when the tax liability is incurred.
(2) The Ministry of Finance, Tax Administration (hereinafter: Tax Administration) shall define, as a rule, the real estate transfer tax basis as the real estate market value from the acquisition document if the total price amount given or paid by the acquirer is approximately equal to the prices that are obtained or might be obtained on the market.
(3) The total price amount shall refer to anything given or paid for real estate acquisition by the acquirer or another person in the name of the acquirer, such as cash payment, transfer of other real estate, possessions or rights, takeover of debts from the previous owner or other.
(4) The Tax Administration shall be authorized to estimate the real estate market value if the total price amount referred to in paragraphs 2 and 3 of this Article is less than the prices that are obtained or might be obtained on the market at the moment when the tax liability is incurred.
(3) The estimate of the real estate market value referred to in paragraph 4 of this Article shall be determined by a Tax Administration officer based on comparable data on market value ranges for similar real estate from approximately the same area at approximately the same time.
(6) By way of derogation from paragraph 4 of this Article, if the real estate is acquired in a public tender, public sale (action) or bankruptcy proceedings with the appropriate application of provisions of enforcement regulations governing real estate enforcement and proceedings in which one party is a legal person majority-owned by the Republic of Croatia, or the Republic of Croatia, units of local and regional self-government, state government bodies, institutions whose sole founder is the Republic of Croatia or a unit of local and regional self-government, the total price amount shall be everything given or paid for real estate acquisition by the acquirer or another person in the name of the acquirer.