Taxes and tax returns

Real estate transfer tax

If you purchased, inherited or in any other way acquired real estate, you are a real estate transfer tax payer

If you purchased, inherited or in any other way acquired real estate (a building or land) when value-added tax (VAT) is not paid for such an acquisition, you are a real estate transfer tax payer. The tax rate equals three percent of the real estate market value at the moment of its acquisition.

The basis for the real estate transfer tax is the market value of the real estate at the moment when the tax liability is incurred.

The following is, inter alia, exempt from payment of VAT:
  • Supply of land, except for building land
  • Supply of buildings or parts thereof and land on which they are built if more than two years passed between the date of the first settlement or use and the date of the next supply.
 

Tax exemption

Citizens are not required to pay the real estate transfer tax if they are:  
  • Persons who are acquiring real estate in a procedure of restitution of confiscated property and real estate consolidation
  • Displaced persons and refugees who are acquiring real estate by substituting their real estate located abroad
  • Protected tenants who are buying a residential building or apartment in which they live pursuant to a tenancy agreement
  • Citizens who are buying a residential building or apartment (including land) to which they either had a right of tenancy or are doing this with consent of the holder of the right of tenancy pursuant to the regulations on sale and purchase of tenanted apartments. This also applies to protected tenants who are buying a residential building or apartment in which they live pursuant to a tenancy agreement
  • Persons who are acquiring real estate in accordance with the regulations on transformation of social property into other types of property
  • Legal spouses, common-law spouses, formal and informal life partners, descendants and ancestors, adopted children and adoptive parents who are in this type of relationship with the dependent and are acquiring real estate from this person under a lifelong support agreement or a support until death agreement
  • Persons who are acquiring, by means of termination of co-ownership of real estate or division of commonly owned real estate, separate parts of this(these) real estate property(ies), notwithstanding the ratios before and after such termination of co-ownership of real estate or division of commonly owned real estate.

You need to enclose documents in this regard depending on the basis on which you are exempt from tax.

Inherited and donated real estate

You are also entitled to exemption if you have inherited real estate or if it was given to you as a gift and you fall into one of the following categories:
  • Legal spouses, common-law spouses, formal and informal life partners, descendants and ancestors in the direct line of descent and adopted children and adoptive parents who are in this type of relationship with the deceased or the donor
  • Legal or natural persons gifted or given real estate without charge by the Republic of Croatia or a unit of local and regional self-government as compensation or for other reasons related to the Croatian Homeland War
  • Former spouses, common-law spouses, formal and informal life partners when regulating their property relations.


Real estate transfer tax return

Tax returns for real estate transfers which occurred after 1 January 2017 are filed by notaries public, courts or bodies governed by public law within their area of competence. If one draws up a document without having it certified by a notary public, this person is still required to report such real estate transfer to the Tax Administration’s branch office in the area where the real estate is located within 30 days from the date of drawing up this document.

If the real estate transfer was not reported in accordance with the real estate’s market value, the Tax Administration is authorised to establish the real estate’s market value by valuation. If the taxpayer is exempt from tax, they will not receive a decision on exemption. Decisions will be issued only to those taxpayers whose tax liability is determined.

Tax collection

Tax returns for real estate transfers which occurred after 1 January 2017 are filed by notaries public, courts or bodies governed by public law within their area of competence. Real estate transfer tax taxpayers are required to meet their tax liability within 15 days from the delivery date of the decision determining the real estate transfer tax, since appeals do not delay the execution of both interim and tax decisions.

To find out more detailed information about the real estate transfer tax:
  • contact the Call Centre 
  • use the e-mail form Write to Us on the Tax Administration’s website
  • Visit a local branch office of the Tax Administration in person.