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