REALWorld Law

Taxes

Ongoing taxation

What taxes (if any) are payable by the owner of real estate on a recurring basis and can these be reduced or offset in any way?

Croatia

Croatia

In the case of companies capital gains are normally taxed as profit at the rate of 18% and in case of a company with less than EUR1 milion annual income, 10%. Capital gains are treated in the same way as rental income and other income from real estate ownership. Tax is payable on rental and other income after the deduction of expenses (including interest, depreciation and administrative costs).

An individual's rental income from real estate in Croatia is subject to personal income tax at the rate of 12%. Tax is payable on rental income after deducting 30% to cover expenses. This deemed amount applies irrespective of the actual expenses incurred. If the individual is not a VAT payer (ie has no registered business that is subject to VAT), the income tax payable on rental income may be determined by the tax authority as a flat rate.

No other taxes apply to the ownership of real estate.