Croatia Real Estate Tax : porezna-uprava.gov.hr

Organization : Ministry of Finance, Tax Administration
Facility : Real Estate Tax
Country : Croatia
Website : https://porezna-uprava.gov.hr/en/real-estate-tax/7372

What is Real Estate Tax?

Real estate tax shall be paid by national and foreign legal and natural persons that are owners of real estates on 31 March of the year for which the tax is determined. By way of derogation from paragraph 1 of this Article, if the owner cannot be identified, the real estate tax shall be paid by the user of the real estate, identified in accordance with the provisions of the regulations governing the utility management.

Taxpayer of Real Estate Tax

Domestic and foreign legal and natural persons that are owners of real estates.

Subject of Real Estate Taxation

Square meter of usable area. The amount of real estate tax is prescribed by the representative body of local self-government unit by its decision.

Rate of Real Estate Tax

(1) Tax on real estate shall be paid annually in the amount of 0.60 to 8.00 EUR/m2 of usable area of the real estate, determined by a regulation governing the conditions and criteria for the calculation of the protected rent.

(2) The representative body of a local self-government unit shall prescribe the amount of real estate tax by its decision, within the limits set out in paragraph 1 of this Article.

(3) Where the representative body of the local self-government unit does not prescribe the amount of real estate tax by its decision, the tax shall be assessed in the amount of EUR 0.60/m2 of usable area of real estate.

(4) In the case referred to in paragraph 3 of this Article, the Tax Administration shall be the competent tax authority for assessing and collecting real estate tax.

(5) The local self-government unit may assess the amount of real estate tax depending on the location, street, settlement or zone where the real estate is located.

(6) The local self-government unit may prescribe that the amount of tax laid down in paragraph 5 of this Article shall be increased depending on other criteria that affect the value of the real estate, such as the age of the real estate and the presence of facilities that increase the value of the real estate.

Tax on real estate shall not be paid on real estate:
1. which is used for permanent housing
2. which is rented out under lease contract for permanent housing
3. of public purpose and intended for institutional accommodation of persons
4. which is kept as real estate for sale in financial records of companies, where less than six months have elapsed between the date of entry in the financial records and 31 March of the year for which the tax is assessed
5. which has been taken in possession in exchange for outstanding claims, if less than six months have elapsed between the date of taking possession and 31 March of the year for which the tax is assessed
6. which, due to the declaration of natural disasters in a given tax period, are not suitable for residential premises
7. in cases for which it can be established from all circumstance that the housing use of real estate has been rendered impossible
8. is owned by local self-government units located exclusively in the territory of that local self-government unit
9. which are used for permanent housing for the host identified as such in accordance with the regulation governing catering activities.

Note:
For newly built real estate, the obligation to pay real estate tax arises on the date of enforceability of the certificate of occupancy for the year for which the tax is assessed, or on the day on which the occupancy of real estate which is occupied without a certificate of occupancy commenced.

The obligation to pay income tax on the rental of houses, apartments, rooms and beds and facilities for Robinson Crusoe style of accommodation to travellers and tourists and the organisation of campsites in accordance with the provisions of income tax regulations, the obligation to pay other taxes on basis of an activity and the registration of premises as non-commercial accommodation have no impact on determining the status of real estate for the purposes of assessing real estate tax.