Finance Minister Maric Changes Mind on Property Transfer Tax Abolition

Lauren Simmonds

Updated on:

September the 16th, 2020 – The noise surrounding property tax and property/real estate transfer tax has been loud for a significant amount of time now. There have been comments made across all spectrums and it appears that the subject continue to be a thorn in the side of many, constantly coming up in almost every political discussion. It appears that what was once celebrated, the idea of the total abolition of property transfer tax, isn’t going to happen any time soon as Finance Minister Maric changes his mind.

As Poslovni Dnevnik writes on the 15th of September, 2020, back in July, Finance Minister Maric announced that he planned to abolish the ever-unpopular property transfer tax, but cities and municipalities rebelled, so the tax will remain throughout next year. This unfortunately means that the proverbial little guy suffered once again as buyers of apartments and houses now realise that they waited in vain for the abolition of this cumbersome tax.

Those who postponed the purchase of property for next year in order to not have to pay three percent real estate transfer tax, are more than understandably irritated by Finance Minister Maric’s apparently sudden change of heart.

As was unofficially confirmed for 24sata from a reliable source, this tax will certainly remain in place as normal throughout next year and will not be part of the package in which income tax and profit tax are being reduced.

Real estate/property transfer tax is paid according to the value of the real estate in question, so if you’re buying an apartment, for example worth 100,000 euros, the city or municipality where the real estate is located should be paid 3,000 euros, this is no small amount in any scenario, much less when a buyer is already forking out a huge sum of money for a property.

”The real estate transfer tax of three percent is set to remain next year. The programme of the Croatian Government includes the announcement that it will be abolished by the end of the mandate and we’re going fulfill that, but it will not be part of this relief package,” a high-ranking interlocutor from the Croatian Government confirmed.

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