REALWorld Law

Taxes

Taxation of income

How is income arising from an investment in real estate taxed and can these taxes be reduced or offset in any way?

Croatia

Croatia

In the case of companies, tax is payable at the rate of 18% (or 10%) of the rental 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.