Real estate transfer tax remains 3%

Real estate transfer tax remains 3%

Due to speculative articles in various Croatian media, we are often asked in the real estate transfer tax of 3%, payable by every buyer, will be abolished in 2021. The answer is – not yet.

Deputy PM and Minister of Finance clearly said he never inisinuated it would happen so soon. Cancellation of RETT has only been mentioned to happen at some point in this administration.

However, as the RETT equals to around 1 billion HRK per year, and it represents an income of the municipality on whose territory the property is located, it becomes clear that the Government will not make up the potential loss in local income since its own central treasury lacks VAT revenue caused by drop in consumers' spendings due to Covid lockdown.

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ivo

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