Real estate transaction tax

Real estate sales tax is calculated and paid according to the Real Estate Sales Tax Act.

Real estate transactions are any acquisition of real estate ownership in the Republic of Croatia.

The tax rate for property taxation is 3%. If you pay VAT on the real estate, then you do not pay the 3% real estate transaction tax. This text applies in case you have to pay 3% real estate transaction tax.

The tax liability arises at the time of the conclusion of a contract or other legal transaction, the finality of the decision on inheritance or court decision, the conclusion of a life support contract, at the time of death if it is a life support contract
Domestic and foreign natural persons are equal in terms of payment of real estate sales tax.

The taxpayer in the case of a sale is the buyer, in the case of an inheritance the heir, in the case of a gift the recipient, in the case of an exchange all participants in the exchange, in the case of a division all the participants in the division, in the case of a lifetime maintenance contract the maintenance provider, in the case of a lifetime maintenance contract the maintenance provider, in other forms of acquisition the acquirer.

The basis of the real estate transaction tax is the market value of the real estate at the time of the tax liability. When exchanging real estate, the tax base is determined for each participant in the exchange according to the market value of the real estate they acquire.

Deadline for reporting real estate tax:
After certifying the signature on the contract or other document on the acquisition of real estate, the notary submits such a document to the competent Tax Administration, which then issues a decision on the payment of real estate sales tax or invites you to submit proof of exemption from real estate sales tax. Courts and other public law bodies also deliver their decisions to the competent Tax Administration. Exceptionally, if the acquisition document was not certified by a notary public, nor was it issued by a court or other public law body, the taxpayer is obliged to report the transfer of real estate to the competent Tax Administration no later than 30 days from the date of the tax liability.

Real estate sales tax is not paid by:
persons who acquire real estate in the process of returning confiscated property and consolidation of real estate,
exiles and refugees who acquire real estate by exchanging their real estate abroad,
protected tenants who buy a residential building or apartment in which they live on the basis of a lease agreement, citizens who buy a residential building or apartment (including land), on which they had the right of occupancy or with the consent of the holder of the right of occupancy according to the regulations governing the sale of apartments on who have the right of occupancy. The same applies to protected tenants who buy a residential building or an apartment in which they live on the basis of a lease agreement, persons who acquire real estate in accordance with the regulations governing the conversion of social property into other forms of ownership, spouses, common-law partners, formal and informal life partners , descendants and ancestors as well as adopted children and adoptive parents who are in that relationship with the recipient of maintenance and acquire real estate from him on the basis of a contract on lifelong maintenance or on the basis of a contract on lifelong maintenance, persons who, through the dissolution of co-ownership or the division of joint ownership, acquire separate parts of that or those real estates , regardless of the ratios before and after the dissolution of co-ownership or division of joint ownership. Spouse, descendants and ancestors who make up the vertical line and adopted children and adoptive parents who are in that relationship with the deceased or the donor, it is important to note that this also applies to the grandfather-grandchild, grandmother-grandchild relationship when donating and is required in the donation contract especially emphasize that, for example, a grandfather gifts such and such real estate to his grandson, and the Tax Administration will verify the data by inspecting the birth registers based on the data in the gift contract, legal and natural persons to whom the Republic of Croatia or a unit of local and regional (regional) self-government donates or gives real estate without compensation for compensation or for other reasons related to the Homeland War, and former spouses when arranging their property relations.

The exemption from payment of real estate sales tax if the first property is purchased has been abolished.