The new property tax law, which will soon come into effect, introduces significant changes to how property owners in Croatia calculate and pay their taxes. This law impacts all property owners, from private individuals to legal entities, and it is crucial to understand how the new provisions apply. Below, we will present the fundamental changes and topics applicable under the new property tax law.
What should you pay attention to?
Taxpayers of the Property Tax: According to the new law, property tax will be paid by all property owners, regardless of the type or purpose of the property. Individuals and legal entities will be taxpayers, meaning the law will broadly impact all sectors. Thus, the obligation to pay tax applies to all owners who possess property in Croatia, regardless of their nationality or place of residence.
Types of Property Subject to Tax: The law will clearly define which property types are subject to the tax obligation, including residential, commercial, industrial, and business properties. Under the new law, property will be categorized based on various criteria, which will impact the amount of tax. How will the property value be assessed and tax calculated? The new law foresees a detailed system for determining the market value of properties using different valuation methods, including market, cost, and income approaches. Owners must familiarize themselves with these methods as they will directly affect the tax amount.
Tax Rates and Payment Obligations: The new tax rules foresee different tax rates depending on the type and value of the property. Taxpayers must comply with payment deadlines to avoid additional penalties and interest charges.
Exemptions and Tax Relief Opportunities: The new law also introduces specific conditions under which property owners may qualify for tax relief. This includes properties of cultural, religious, or ecological significance and certain types of business properties.
Property Transfer – Tax on Gifts, Inheritance, and Sale of Property: The law introduces new conditions for transferring property ownership, including tax obligations for gifts, inheritance, and sales. Changes will affect all those planning property transfers or inheritances. This law has far-reaching implications for all property owners in Croatia, so preparing for the changes and understanding all new tax obligations is essential.
For more information about the new rules and advice on applying them, contact the team of experts at Confida Croatia, who will assist you in understanding and optimizing your tax obligations.
