Post by Peter Ellis on Sept 2, 2015 13:47:04 GMT 1
The following was published by our friends on Korcula, Marco Polo last year. It answers some questions that we have been getting.
Property Taxes
This information is not yet official. We are seeing a basic structure evolve regarding the application of a yearly property tax for Croatian properties. The property tax will replace the current “Communal Fee” (or Counsel Tax) which everyone who owns property pays to the local government, based on a varying rate.
The base tax will be calculated at a 1.5% of 70% of the “assessed” value of the property. This rate could be affected by the following factors (again, this is all unofficial and not a complete list):
- whether the property (house, apartment) is “owner occupied”.
- the number of properties an “owner” has.
- whether the property is considered an “investment property”.
- whether the properties are involved in a business, such as tourist rentals.
“Citizens” who “permanently use” the house/apartment will be granted 88-95% relief on the base tax. “Citizens” which “occasionally” use the house/apartment will be granted 70-85% relief. We are waiting to hear more about the rates for “non-citizens”. We have no information so far regarding tax rates on vacant building land or agricultural land.
The decisions regarding tax rates and exemptions will be the responsibility of the local governments and it appears that the highest tax rates, citizens or not, will be assessed on non owner-occupied properties that remain empty for some (undetermined) part of the year. We will keep you informed via this newslette
Property Taxes
This information is not yet official. We are seeing a basic structure evolve regarding the application of a yearly property tax for Croatian properties. The property tax will replace the current “Communal Fee” (or Counsel Tax) which everyone who owns property pays to the local government, based on a varying rate.
The base tax will be calculated at a 1.5% of 70% of the “assessed” value of the property. This rate could be affected by the following factors (again, this is all unofficial and not a complete list):
- whether the property (house, apartment) is “owner occupied”.
- the number of properties an “owner” has.
- whether the property is considered an “investment property”.
- whether the properties are involved in a business, such as tourist rentals.
“Citizens” who “permanently use” the house/apartment will be granted 88-95% relief on the base tax. “Citizens” which “occasionally” use the house/apartment will be granted 70-85% relief. We are waiting to hear more about the rates for “non-citizens”. We have no information so far regarding tax rates on vacant building land or agricultural land.
The decisions regarding tax rates and exemptions will be the responsibility of the local governments and it appears that the highest tax rates, citizens or not, will be assessed on non owner-occupied properties that remain empty for some (undetermined) part of the year. We will keep you informed via this newslette