Croatian Parliament Confirms the Real Estate Law
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All Croatian parliamentary parties have yesterday in Parliament supported the amendments to the Croatian Law on Real Estate. One of the issues these amendments determine is related to the real estate tax – buyers who buy their first property in Croatia for the purpose of solving their housing problem will in future not be obligated to pay the real estate transfer tax. Requirement for tax exemption is that the size of the property does not exceed 50 sqm if one person plans to use it, for family of two the limit is 65 sqm, family of three: 80 sqm, and a family of four does not pay the tax for maximum of 90 sqm.
The Social Democratic Party representative Mrs Nada Čavlović Smiljanec said that the procedure of determining the tax base for Croatian real estate is still quastionable. Until now it had been possible to arrange special conditions with the taxpayers, which in turn resulted in lower tax amounts for the state. The aim of these amendments is to avoid this, but the question remains how effective the amendments will really be, said Mrs Čavlović Smiljanec.
