|
Post by zvekov on Dec 28, 2011 20:15:42 GMT 1
A lawyer told me: there is no real estate tax to pay on purchase of property in certain zones in Croatia-(konavle in this case) if, the buyer is a company or person resident in the specified region. Is this true? Or can anyone show me where this legislation is written.
Something about discouraging rural exodus...
|
|
radun
New Member
Posts: 7
|
Post by radun on Sept 26, 2012 2:23:55 GMT 1
Do you pay a RETT if a house is passed down from father to son?
|
|
|
Post by Carol on Sept 26, 2012 11:53:04 GMT 1
radun -yes. You pay it whenever ownership changes, even if it is inheritance or even if its a company owner selling the property from his company to himself. Anything you want to know about taxes is written here. Its usually best to get these things from the horse's mouth than from anyone else (including lawyers, accountants, estate agents and tax officers!). www.porezna-uprava.hr/en/porezi/v_poreza.asp?id=b01d1I've copied out the key section for you. 4.2 REAL ESTATE TRANSFER TAX TAXPAYER The person or entity acquiring the real estate. TAX BASE The taxable base is the market value of a real estate at the moment when the tax liability is incurred. The market value of the real estate is the price of the real estate that is obtained or that might be obtained on the market at the moment when the tax liability is incurred. The subject of taxation is the transfer of real estate. The acquisition of newly built real estate that is taxed according to the VAT Law is not considered the transfer of real estate. TAX RATE 5% TAX REGULATIONS The Real Estate Transfer Tax Law, (Official Gazette of RC 'Narodne novine' No 69/97, 153/02, 22/11). Croatian Constitutional Court Decision (Official Gazette of RC 'Narodne novine' No. 26/00). Ordinance of the Form and Content of the Notification Real Estate Transfer Tax, (Official Gazette of RC 'Narodne novine' No. 137/11).
|
|
radun
New Member
Posts: 7
|
Post by radun on Sept 26, 2012 17:59:20 GMT 1
Thank you !
|
|
|
Post by mh on Oct 1, 2012 7:09:19 GMT 1
Thumbs up to all the brave and courageous Croatian officials and tax agent are doing their job and making sure everybody is playing fair and making their contribution to the community. Well done! I hope I will hear more of such positive examples!
|
|
|
Post by zvekov on Oct 1, 2012 18:49:02 GMT 1
|
|
radun
New Member
Posts: 7
|
Post by radun on Oct 1, 2012 23:36:53 GMT 1
I did confirm with the authorities in Croatia that there is no RETT when property is passed from father to son.
|
|
|
Post by sandybear124 on Oct 2, 2012 9:47:59 GMT 1
propertymanagement - very interested in your July post. We saw a solicitor in September about closing a company. He said it would cost nearer 10.000 euro than the 1.500 you quote as posting notices etc would amount to more than 1.500 alone. Did you deal with closing the company for your client or just the transfer of title?
Also, was concerned after reading in various posts about money having to be seen to be put into bank account when buying from the company. Solicitor said this is not necessary as we loaded the money to the company in the first place the relevant wording is put in the contract.
|
|
|
Post by crojoe on Oct 2, 2012 11:54:43 GMT 1
propertymanagement - very interested in your July post. We saw a solicitor in September about closing a company. He said it would cost nearer 10.000 euro than the 1.500 you quote as posting notices etc would amount to more than 1.500 alone. Did you deal with closing the company for your client or just the transfer of title? Also, was concerned after reading in various posts about money having to be seen to be put into bank account when buying from the company. Solicitor said this is not necessary as we loaded the money to the company in the first place the relevant wording is put in the contract. Yes, sounds about right. That is why Croats just dormant their companies and hope for a better day. I don't know if you live in Croatia, have a property here or washed your hands and left. If the latter then just dormant the company and don't look back. If you do come to HR, then just do a 1 year tax return for a while till you see what happens. With the EU joining, many things may still change. Sorry, but your between a rock and a hard place for now. No easy solution or I would have done it already.
|
|
|
Post by Carol on Oct 2, 2012 12:37:30 GMT 1
zvekov & radun - you are right and I did not know this. It made interesting reading though (if you are a geek like me about this sort of thing!)
|
|
|
Post by Carol on Oct 2, 2012 12:42:12 GMT 1
this bit was especially interesting because the tax officers have been routinely marking up property values way beyond what anyone in their right mind would ever/ has ever paid. they ahve been doing this even during the downturn!
(3)The Tax Administration shall, as a rule, determine the tax base of the real estate transfer tax as the market value of real estate pursuant to the acquisition document provided that the total amount of compensation given or paid by the acquirer is approximate to the prices that are or can be obtained on the market.
|
|
|
Post by Carol on Oct 2, 2012 12:42:44 GMT 1
I guess "acquistion document" means sale contract.
|
|
|
Post by Carol on Oct 2, 2012 12:58:49 GMT 1
I do wonder (in my darker moments) whether the EU will make any difference at all. Plenty of other EU countries are riddled with problems that the EU hasn't made any improvement on at all. When did Italy join the EU??
Update: i just checked. Italy was a founding member. I think i'll give up on my hopes for a less bureaucratic, cleaner Croatia right now!
|
|
|
Post by sandybear124 on Oct 2, 2012 15:30:36 GMT 1
Crojoe - we still come to Croatia and are at the stage of deciding if we should buy the property from the company or not. Maybe as well to sort it all out and do as you say, put in 1 year tax return and then forget about it (we have already been doing returns since 2005 even though there has been no activity).
Something else for you all to ponder! Last September (2011) when the new law had not been relaxed and it was necessary to have a building and users permit before being able to sell. We actually sold our second apartment that has a building license but not the users. Everything has gone through okay, we have the money, the new owner has been entered into the land registry and all bills changed to their name.
|
|
|
Post by crojoe on Oct 2, 2012 16:54:50 GMT 1
Crojoe - we still come to Croatia and are at the stage of deciding if we should buy the property from the company or not. Maybe as well to sort it all out and do as you say, put in 1 year tax return and then forget about it (we have already been doing returns since 2005 even though there has been no activity). Something else for you all to ponder! Last September (2011) when the new law had not been relaxed and it was necessary to have a building and users permit before being able to sell. We actually sold our second apartment that has a building license but not the users. Everything has gone through okay, we have the money, the new owner has been entered into the land registry and all bills changed to their name. I would suggest you try to get the property in your private names and not on the company as then the government cannot then grab the property if something where to go wrong tax wise. I hear a lot of talk but no real proof yet that the government wants to close down dormant companies, but as is the norm no one really knows how they are going about the process, what that means to people in your situation that own property on a HR company. The probability of you having to pay some tax is there. I understand that if this is your first property to buy in HR (which sounds like it is not) then there are some tax breaks. Maybe if done as a private buy you can still claim it as your first? I think the likes of madgolfer would be your best bet to link up with and figure things out, or maybe even Karl.
|
|