Various new laws have come into effect in Croata with the arrival of 2016. Here is an overview.
With the new year, there are many new laws and regulations which have come into force in Croatia on midnight, reports Vecernji List on January 1, 2016. Here are some of the most important ones:
1. Capital gains tax
Citizens who buy stocks this year and then sell them during the year and make a profit will have to pay capital gains tax at a rate of 12 percent plus local surtax. There will be no tax for shares bought during 2015 and earlier and for those shares which are held for at least three years.
2. Filing of income tax returns
According on the amendments to the Income Tax Law, some of the citizens who want to get a tax refund will no longer have to submit an annual tax return for the previous year by the end of February. The Tax Administration will do the job for them, but only for those citizens who receive income from regular employment. People who earn income from self-employment activities and in other ways will still have to file their own tax returns.
3. Local and regional government financing
Revenues from personal income taxes in Croatia are shared between central and local government and, starting from this year, 35 towns and municipalities within mountainous areas of Croatia should get a larger share of this tax, about 58 million kuna for the whole year, while the counties in which these towns and municipalities are located will receive about 12.5 million kuna less.
4. Personal bankruptcy
Over-indebted citizens will be able to have a fresh start. The aim is to free them of obligations which remain after their property is sold in order to distribute the funds to the creditors. Courts will determine which citizens are eligible, taking into account their behaviour prior to the opening of bankruptcy proceedings.
5. Smaller interest rates on loans
From next year, all the leading banks have announced they will lower interest rates on loans, which will make it the third year of falling interest rates in the domestic financial market.
6. Energy certificates for leased properties
Each residential and commercial building with the total area of more than 50 square metres which will be rented or leased will have to be issued with an energy certificate, the same certificate which was introduced a few years ago as a condition for selling real estate properties.
