Immovable property

Last reviewed 21 Aug 2023

Tax depreciation

Straight-line

Straight-line depreciation over the expected useful life of the asset.

Additional

Depreciation must be the same for tax and accounting purposes.

Depreciation categories

Land

No depreciation

Buildings

5 %

Longer or shorter useful lives may be used

Tax base for buildings

Special depreciation

Possible doubling of depreciation rates

Write-ups

None

Real estate income tax

Object of taxation

Income from property and property rights is considered to be the difference between receipts based on rent, renting apartments, rooms and beds to travelers and tourists, special receipts from the time-limited assignment of copyrights, industrial property rights and other property rights in accordance with regulations, receipts from the alienation of real estate and property rights and expenses incurred by the taxable person in the tax period in connection with these receipts.​

Tax rate

• Category I: €100.00 – €300.00,
• Category II: €70.00 – €200.00,
• Category III: €30.00 – €150.00,
• Category IV: €20.00 – €100.00, previous (from EUR 19,91 to EUR 199,08 per bed.)

Tax collection

N/A

Exemptions

N/A

Property transfer tax

Object of taxation

Object of taxation are real estate transactions that are not subject to VAT.

Basis of assessment

Tax rate

Real estate transfer tax is paid at the rate of 3%.

Property-related taxes

N/A

Property tax

Real Estate tax, previous Tax on holiday homes

Objects of taxation

Real estate funds

Owner of the fund assets

The fund management company, so that for the investor there is no entry in the Land Register and no property transfer tax

Annual valuation

Prior to purchase by a certified court expert.

Borrowing

At least 50 % of net fund assets to be invested in property in Croatia

Diversification of risk

Value of any individual property not to exceed 20 % of total fund assets

Tax liability

Property fund management company (18 % or 10 %; see Corporate income tax)