LAWS TO WATCH: Real Estate Transfer Tax Act & VAT Act

linic-1114 April 2014, LPJ Croatia Issue 80

The proposed amendments are aimed at harmonising the taxation of the transfer of real estate with the VAT (PDV) Act, in order to avoid double taxation.

As a result of the EU accession negotiations, Croatia was given the right to introduce a transitional period during which undertakings and private citizens were exempt from paying VAT on purchased real estate.  The transitional period will expire on 1 January 2015.  On the same date, the 5% tax on the transfer of real estate will be abolished, in order to omit double taxation.

Note: Public debate is open until 3 May…

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