NEW taxation for purchasing of new developments in Croatia
Starting from 2015 Croatia is implementing new taxation in respect of purchase of newly constructed real estate objects: in case the seller is a legal entity within VAT zone - the buyer will not pay 5% property transfer rax.
This measure should minimize overall taxation of the buyer as the purchasers of newly built realty in Croatia had to pay 30% tax before: 25% of VAT inluded into purchasing price + 5% of property transfer tax.
New legislation helps to avoid this double taxation. We hope that it will stimulate purchasing of new apartments and cottages and thus help the local developers who need to survive after 5 years of real estate market stagnation.