Real estate transfer tax

Real estate transfer tax

If you have purchased, inherited, or otherwise acquired a property, you are liable for real estate sales tax

If you have purchased, inherited, or otherwise acquired a property (building or land) when you do not pay a value added tax (VAT) for such acquisition, you are a taxpayer for real estate sales tax. The tax rate is four percent of the market value of the real estate at the time of its acquisition.

The basis for real estate sales tax is the market value of the property at the time of the tax liability.

VAT payments, among other things, are exempted:
• land delivery, excluding construction land
• delivery of buildings or their parts and land on which they are located, if more than two years have elapsed since the date of first resettlement or use, up to the date of the next delivery.
 
Tax Exemption

Citizens do not pay real estate sales tax if they are:
• persons who acquire real estate in the process of repatriation of confiscated assets and realignment of real estate
• displaced persons and refugees who acquire real estate by replacing 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) with occupancy right or with the consent of the tenant’s tenant under the regulations governing the sale of flats where occupancy right exists. The same goes for protected tenants who buy a residential building or apartment in which they live on the basis of a lease agreement
• persons who acquire real estate in accordance with the regulations regulating the conversion of social ownership into other forms of ownership
• spouses, extramarital partners, formal and informal life partners, descendants and ancestors, adopters and adopters who relate to the recipient of the maintenance relationship and acquire real estate on the basis of a lifetime agreement or on the basis of a contract on survival
• persons who by divestiture of co-ownership or by a joint ownership share acquire special parts of these and those real estates, irrespective of the ratios prior to and after the dissolution of the co-ownership or division of joint ownership.

Which documents you need to attach depends on which basis you are exempt from paying taxes.

Inherited and donated real estate

You have the right to release even if you inherited or received a property and belong to one of the following categories:
• a spouse, extramarital, formal and informal life partners, offspring and ancestors who make an upright line, and adherents and adopters who are in this relationship with the deceased or gifted
• legal and natural persons to whom the Republic of Croatia or a local and regional self-government unit donates or gives real property without compensation for damages or other reasons related to the Homeland War
• Former spouses, former extramarital partners, and former formal and informal life partners when regulating their property relations.
 
Report real estate sales tax

Real estate traffic arising after January 1, 2017 is reported by notaries, courts or public law bodies within its jurisdiction. If, however, someone compiles a document not certified by a notary public, he / she is still required to report such real estate traffic to the competent tax authority at the place where the property is located, within 30 days from the date of writing.

If the real estate transaction is not reported according to the real estate market value, the Tax Administration is authorized to estimate the market value of the property by estimation. If a taxpayer is exempt from paying taxes, he or she will no longer get a ruling on that exemption. Only those taxpayers who determine the tax liability will receive the solution.
 
Billing Tax

The taxpayer for real estate transactions is obliged to pay the tax liability within 15 days from the date of delivery of the decision on the determination of the real estate tax, since the appeal does not delay the execution nor a temporary or tax solution.

Find out more about real estate sales tax information:
• by calling the call center phone numbers
• through the electronic form “Write Us” on the Tax Administration website
• By personal arrival at the local Tax Administration office.

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