Post by velebit on Oct 6, 2016 14:30:08 GMT 1
Croatia Holiday and Home - Report Number 203, October 2016
Property Tax In Croatia
( The following information is subject to change by the Croatian government. )
The Croatian government has started collecting a property tax. All property owners today pay (or should be paying) a “communal fee”. However, that fee has been replaced a property tax.
The biggest difference between the communal fee and a property tax is that the communal fee is paid in relation to the size of the property and property tax will be charged in relation to the property value. The tax offices have property sales records for each area and these records will be the basis for the future valuations.
When considering the tax law, it will be very important whether the property is occupied by the owner. It will make a difference if the property is used for rental purposes or is just a second home used a few weeks a year. If it is a residential property, the property tax will likely be lower. When used for rental purposes the property will be subject to a different tax scale. The highest rates will be if the property is used as a second home. The tax rates will be a bit lower than general EU rates and are projected to be 1.5% of 70% of the assessed value of the property.
Croatia implemented the property tax in order to comply with EU regulations. It is interesting to note the fact that 80% of Croatian citizen have ownership interests in various properties, which means that Croatia, based on that measure, is one of the richest countries in EU.
The property tax will also be used to assists the local governments in updating the land and property ownership records. In some locations, especially the smaller towns and villages in Dalmatia, there is an abundance of long-empty or abandon houses, many reverting to ruins. The mass emigration that occurred in the first half of the twentieth century has left the status of property ownership, in some cases, uncertain and hugely problematic.
The tax rates are the same both for Croatian citizens and for the foreigners who own property in Croatia or a Croatian company that owns property in Croatia. Foreigners who have “categorization” license to rent and those who have business visa and use property as residential home or office will likely pay a lower tax."
www.marcopoloblato.com/
Hello
Re above does anyone have any information on the implementation of this tax and how to calculate potential liability for the tax.
Is there a website or layman's guide to this tax..which office within the government tax system will be responsible for calculating and collecting the tax and when?
I already pay communal taxes and annual holiday home tax...in wider Zadar area..and have heard nothing locally regarding implementation of this new tax.
I know this has been a topic which attracted much speculation previously but the interesting thing is that it now appears to being collected.
Has anyone any experience of this?
Any information and guidance would be appreciated
Thanks in advance
