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Post by jon on May 8, 2005 13:22:22 GMT 1
I have driven around with four different realtors in recent months, narrowed my search to two properties, and now I am getting into the details. Not entirely surprisingly, I haveheard different answers to my question about taxes on the purchase of real estate in Croatia.
One realtor said the seller pays 5%. One realtor asid the buyer pays 5%. One realtor said it is negotiated who pays the 5%, but the buyer pays a 22% VAT.
Anyone know the real answer?
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Post by Peter Ellis on May 10, 2005 21:11:56 GMT 1
There is a 5% property transfer tax payable within a few days of getting your property registered in the Land Registry. This is payable by the buyer, not the seller. If the property is a new build, being sold by a vendor who is a company registered for PDV (VAT/sales tax), the 5% will be on essentially the land value. If it is a resale or being sold by a private individual, where there is no PDV included in the price, the 5% will be on the total value of the property. This will normally be on the contract value. Legally, it is on the value of the property and in theory at least, this could differ from the contract value, if the authorities chose to look at it particularly. PDV(VAT/sales tax) is normally included in the advertised price of the property if it is applicable. It is unusual for it not to be. I have only come across one Italian developer whose price list did not include it and when we told him it should be, the advertised prices were changed to reflect this. It sounds as if some of your realtors did not know what they were talking about
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Post by jon on May 11, 2005 6:31:09 GMT 1
--There had been other indications that some of the realtors are not as well informed as they could be....
Thanks for the reply.
I sent you an email a couple days ago. Have you seen it?
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Post by Peter Ellis on May 14, 2005 13:34:26 GMT 1
I don't think so. We were away for a few days and have a huge backlog! :(What name was it under?
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