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Post by Anja on Oct 16, 2003 13:50:17 GMT 1
I was just reading the property tax info and what really concerns me is the following: According to Croatian law tax on the property purchase is 5% of its purchase value. This is fine but... If this property is a new built the tax is 22% and this is paid by buyer. Also if the property recently has been renovated, meaning building a new floor, or extended in any way (using a building permission for this) then the tax is again 22% for a potential buyer. Also if the property has been sold within three years from purchase date then the seller needs to pay 35% tax on the profit. Somebody has mentioned that for example a foreigner buys and sells a property (not only within three years from the purchase date but in this case ever) then this profit is also 35% taxable.
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Post by Anja on Oct 16, 2003 13:55:06 GMT 1
Sorry I forgot to mention that 22% tax is only in case when the seler is either a company or a self employed person who has build or renovated the property. Whe a new built property is sold by a person the buyer then pays only 5% tax.
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Post by Mala on Oct 17, 2003 10:48:50 GMT 1
Never heard that foreign citizens pay 35% tax when selling their CRO property. This is not true.
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jen
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Post by jen on Oct 17, 2003 10:59:13 GMT 1
...I'm afraid it is true. I've seen this many times in various articles/websites - it only applies if you sell within 3 years of purchase and the 35% is paid on the profit (i.e difference between buy and sell price).
This is a form of capital gains tax, but only applies if you sell prior to 3 years.
You also pay 5% of selling price when you buy and sell the property.
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Post by Anja on Oct 17, 2003 14:10:34 GMT 1
Somebody in Croats in UK Forum of this website has mention that the foreigners would pay 35% tax on profit not depending on the three years but in their case - this would be whenever they sell. I have aksed the person for the source of their information but they have not replied yet. Does anybody know more about this detail?
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jen
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Post by jen on Oct 17, 2003 14:57:34 GMT 1
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Post by Anja on Oct 17, 2003 18:37:05 GMT 1
The bit about 35% tax if you sell within first three years is clear to me. What I was checking is the information about 35% tax for foreigners whenever they sell ( even after these three years) Is this something new? Is it true? I heard this information on the other www.visit-croatia.co.uk board but the guy hasn't come back with the source of it.
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Post by nik on Oct 20, 2003 16:55:32 GMT 1
everything i have read about it states that there is a capital gains tax to be paid within 3 years of purchase
eg buy on 1/1/2000 for 100k euro sell on 1/1/2002 for 130k euro
you'd pay CGT on the 30k profit
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Post by BL on Oct 20, 2003 17:57:18 GMT 1
BL I think you are correct on CGT within the first three years. Anyhow it would be stupid to sell as the property market is going to be "HOT" in Croatia in the next few years.
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