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Post by Madgolfer on Jun 16, 2006 22:33:25 GMT 1
In our case it was based on CONTRACT value and the local officials arrived on site to inspect the property and value it within two weeks.
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Post by nikh on Jun 17, 2006 19:48:18 GMT 1
in the case of one of my clients it was contract price and he just got a bill in the post, he didnt feel a thing, but you all have me worried as mine is due on 2 props any day now after 2 and half years, so will let you know what happens!!my lawyer says its on contract, but who knows? the officials love the chaos as it keeps us foreigners on our toes and scares the rest into buying property elsewhere
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Post by bheywood on Jun 20, 2006 16:53:37 GMT 1
After almost 20 months, we had no idea when our permission would come through. Truth be told, we figured it would take upwards of two years, especially as we had heard all sorts of tales on this forum about mammoth delays. There have been plenty of people offering services to chase applications up for those getting worried, after all...
...but today, our lawyer got in touch to tell us the paperwork is on his desk!
Which is nice. Except now we have to fork out our 5% purchase tax, of course (boo!). This is based on what we paid for the house, NOT what it is worth now, contrary to some reports - hence we have to supply two original purchase contracts in the next 30 days.
So if you're still waiting, take heart, don't despair. It'll happen in the end...
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Post by valj on Jun 20, 2006 17:36:29 GMT 1
Hi Val from Korcula - we bought our property in February last year and are still awaiting papers from MFA but make sure you show them every receipt for alterations or building work you have done to property - I was advised this on the purchase of ours - if not you will have to pay out 5% tax on the property value now instead of what you origianlly paid for it ! And of course show orginal purchase contract
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Post by backinaction on Jun 21, 2006 8:20:16 GMT 1
...interesting to see responses from those that have had their permission and tax bill already rather than speculation and what people believe to be the case. We too have just received ours and were horrified to find it based on MARKET value - our place is in Istria - can this be something that varies from region to region? It seems crazy that some of us are paying based on contract and others on market. Is there anyone in Istria that's had their bill based on contract value? I am now totally confused and not sure how/who I can take this up with. Ours has taken 2.5 years to come through so I wonder if the tax is based on purchase date? who knows?  ??   |
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Post by lojalnost on Jun 21, 2006 8:25:53 GMT 1
...interesting to see responses from those that have had their permission and tax bill already rather than speculation and what people believe to be the case. We too have just received ours and were horrified to find it based on MARKET value - our place is in Istria - can this be something that varies from region to region? It seems crazy that some of us are paying based on contract and others on market. Is there anyone in Istria that's had their bill based on contract value? I am now totally confused and not sure how/who I can take this up with. Ours has taken 2.5 years to come through so I wonder if the tax is based on purchase date? who knows? ?? I can only say that a lot of things vary from region to region in Croatia. Not much help I know but I don't think people realise this enough. Confused myself as the MARKET value is really hard to determine is it not? From my scant knowledge property sales are down in Istria this year. |
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Post by Graham - Bosmere on Jun 21, 2006 9:54:30 GMT 1
There was a lot of talk a few years back about contracts showing a prioce that was well below the purchase price to avoid taxes. Maybe the different interpretations are based on what was happening in each area. Can anyone else remember back about three years or so when this was alleged to be happening?
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Post by valj on Jun 21, 2006 9:58:26 GMT 1
Val from Korcula here - we were told when buying house as it was only half finished and we had to pay quite a lot to finish it that so that as long as we kept all bills( from builders, tiling etc) that we had paid for finishing it off we would only have to pay the contract price - as we have not our permission yet will wait and see but have kept EVERY RECEIPT even when buying curtains !
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Post by capio on Jun 21, 2006 12:19:33 GMT 1
Val from Korcula here - Hi Val, David from Zagreb here, we can see your name and location on your signature, I keep expecting you to give us the results of the eurovision votes from Korcula.
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Post by valj on Jun 21, 2006 12:48:15 GMT 1
Hi Capio - reason for always saying "val from Korcula" is that I advise UK, American plus other parts to use this site for information etc - Do not know anything yet about eurovision from here yet with not speaking much Cro yet and I do know that all the locals (Cro) are at the present time only interested at the momemt are watching the football !
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Post by Jabukavac on Jun 21, 2006 13:23:07 GMT 1
As others have said before Croatian law seems to be applied randomly and people make it up as they go along.
Graham suggests rules might apply differently in various regions. Whether this is the case or not, the fact is it shouldn't. There must be one rule across the country. It is unbelievable that it is.
I suggest people who are charged based on anything other than contract price not pay and wait for th efuss to blow up, anyone in the gov. insisting on taking action will look a fool.
As a laywer muself I can tell you it would be extremely strange and unusual for a stamp duty to be applied on anything but the contract price (unless at the time it was shown for tax fraud that the price was fixed much lower than market price at the time).
In all jusrisdictions retrospective and forward -spective rules are not allowed. Particularly in case where it takes several years to get papers. (incidentally the MoFA lost mine after 4 years!!).
It is clear people here are not being well advised. In one example as someone already pointed out, if you put a tile down, then it changes to current value!!! If 5 years have elapsed the tile becomes very expensive indeed. Clearly wrong.
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Post by capio on Jun 21, 2006 13:25:11 GMT 1
I was asked to prove that I don't own property abroad, I did this by having a letter from my mother stamped and notarised, gotta love this country.
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Post by valj on Jun 21, 2006 14:59:41 GMT 1
Cannot really help you there Graham - I was lucky in the fact that we were was told to keep receipts etc by estate agent who helped us buy house - and he was very helpful and took us all around islands etc - and I also took photos - at different stages of work to keep but until I get papers from MFA do not know what will happen but have as I said kept EVERY receipt just in case - I know and found out it the law here that you should only pay contract price but was warned about this that when house etc was completed - people in other areas they have charged on the "present value" Just have to go to local notary (Court office) instead of paying lawyer etc to find out up to date news which I do or go on websites
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Post by bheywood on Jun 21, 2006 17:34:32 GMT 1
If you've paid 5% tax on market value, you've been badly advised or scammed.
Yes, people buy wrecks, and do them up - but the purchase tax is unaffected. This 5% refers ONLY to what you paid for the property. If you wind up making loads of money after a development or rebuild, this is where CGT comes in (and the iffy three year rule, too).
Having checked with our lawyer, there are NO variations anywhere in the country. If you were to sign your contract with a purchase price of just €50 or an undervalued amount - as has been suggested on this forum - you would likely not be granted your permission in the first place. I'm sure there are subtle ways of saving yourself a few thousand illegally, but most wouldn't attempt this.
The purchase contract we have states quite clearly that the 5% tax is to be paid on purchase price - signed and agreed by both vendor, buyer and lawyer. Maybe those of you who paid on market value were done over by an erroneous clause in your purchasing contract? Did you pay this 5% direct to the local land register, or through a lawyer/3rd party?
If you didn't pay direct, you could have your answer right there...
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