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Post by crogirl on Oct 12, 2007 18:53:29 GMT 1
I know there has been much dispute on this site re the 5% tax being based on contract price or current market value - does anyone have recent information on how this has been calculated?
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Post by nikh on Oct 14, 2007 16:16:02 GMT 1
As of 2 months ago direct from the tax office in Split and after long discussion and debate, this is what we have been told. The real estate tax is based on the current market price. We have discovered however, that their were some exceptions based on clever contracts. They are aware of a number of cases with foreigners complaining in Istria and are waiting to see outcome at Government level. As of two months ago its on current value and not your real estate agents calculation but by an official court evaluator, according to them and by the way they agree that its not fair when you ask them but say that is how it is. It might explain why Ministry approval can take so long!!!!!
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Post by Ribaric on Oct 14, 2007 20:02:44 GMT 1
The tax inspectors who visited us said it is payable on their estimation of the market value of the property at the time you bought it. In reality, this means the price you paid for it - as long as it seems reasonable. For this reason, we took hundreds of photos of the place at the start and recorded everything meticulously as we renovated and changed things. They were happy with that and charged the 5% on the cost price as it appeared on the exchange contract. They also said that many people pay one value on the contract the rest in under-the-table cash, thus avoiding some tax. They muttered something about over-estimating it's value in order to poke 'em in the eye for trying to cheat.
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