8 am – 4 pm

Our Opening Hours Mon. - Fri.

+385 (51) 373 608

Call Us For Consultation

ONLINE CONSULTATION
logo
Contact us
mobile logo
 

Tax law

Law firm Vaić & Dvorničić Ltd. > Tax law
23 January
0 Comments
Sticky

Real estate tax

Posted by Admin
in Real estate law, Tax law

Croatia, with approximately 3.87 million inhabitants, has over 2.4 million housingunits, including 600,000 unoccupied ones and 231,000 holiday homes. These figuresand the issue of long-term housing availability have prompted the government todraft a new Real Estate Tax Act. The primary aim is to reduce the tax disparitybetween income earned through labor and rental income, as rental income has sofar been taxed more favorably. This act, part of a broader tax reform, focuses onencouraging investment in productive sectors rather than solely in real estate. Thegoal is for this tax to completely replace the holiday home tax. Key changes The first change involves the...

Continue reading
25 March
0 Comments
Sticky

Croatian Law on Investment Promotion – Supports for justified costs and other supports

Posted by admin
in News, Tax law

Tax supports are not the only supports provided by the Law on Investment Promotion, but there are also the following types of supports for beneficiaries. Supports for justified costs of new jobs associated with the investment project For example, a support beneficiary who ensures the creation of new jobs related to an investment project in counties where the registered unemployment rate is more than 15% will be granted non-refundable financial support for the justified costs of creating new jobs related to the investment in the amount of up to 30% of the eligible costs for opening of a new job, in the...

Continue reading
25 March
0 Comments
Sticky

Croatian Law on Investment Promotion – Tax support

Posted by admin
in News, Tax law

Pursuant to the Law on Investment Promotion, the purpose of investment promotion is to stimulate economic growth and the realization of the economic policy of the Republic of Croatia, its inclusion in international exchange flows and the strengthening of the investment and competitive ability of Croatian entrepreneurship. Beneficiaries of support are entrepreneurs (micro, small, medium, and large entrepreneurs), that is, a trading company or a natural person (craftsman) who is liable for profit tax, registered in the territory of the Republic of Croatia. Beneficiaries of investment support cannot be legal or natural persons who have been legally convicted of economic crime. Tax...

Continue reading
09 March
0 Comments
Sticky

Alterations in tax laws

Posted by admin
in News, Tax law

In February 2012, the Government of the Republic of Croatia adopted the whole package of tax law alterations that significantly change the taxpayer’s position. With the Value Added Tax (VAT) Act being changed and the current 23% tax rate increased on 25%, certain amendments to the Profit Tax Act, Income Tax Act and Contributions Act were also adopted. New, higher standard VAT tax rate of 25% entered into force on 1st March 2012 as well as a lower VAT tax rate of 10% set for edible oils and fats, children’s food, water and white sugar. From 1st January 2013 this lower...

Continue reading
07 March
0 Comments
Sticky

Business of non-residents through permanent business unit

Posted by admin
in Commercial law, Tax law

It is well known that some citizens hold large amounts of money in the bank accounts, while due to high inflation and low interest rates savings in the bank are currently not profitable. Namely, by holding money in the bank savers do not generate any returns, while inflation at the same time reduces the value of money saved, because with the money saved, savers can buy less and less products and services day by day, and this trend will continue in the future. To preserve the value of money, real estate investments provide good security against inflation and represent tangible,...

Continue reading
07 September
0 Comments
Sticky

Tax-deductible expenses in a Croatian d. o. o.

Posted by Vaic
in Commercial law, Tax law

Limited liability companies are subject to corporate income tax. The difference between the increased or reduced revenue and expenditure according to the provisions of The Corporate Income Tax Law is used as the basis for tax assessment. There are several ways to reduce the tax basis. One of the best ways to do this and at the same time reward company employees is through tax-free payments to employees. Such payments increase the cost to the company, resulting in less tax being paid. The employer has a wide range of tax-free payments available to pay out to the employee. They are as follows: -...

Continue reading
29 June
0 Comments
Sticky

Tax specifities and differences between Germany and Croatia

Posted by Vaic
in Inheritance law, Property law, Real estate law, Tax law

This article lists the tax specifics, i.e. the differences between the Federal Republic of Germany and the Republic of Croatia in terms of real estate levies, inheritance taxes and tax liabilities depending on the taxpayer’s residence. The differences in the tax arrangements of these two countries are not negligible, thus we present some of them. Real estate levies In the Republic of Croatia, property owners do not pay the annual real estate tax, unless it is a holiday home, but a fee is paid in the form of a utility fee, which must be determined by a decision on the utility fee....

Continue reading
14 June
0 Comments
Sticky

Tax benefits of corporate income taxation in the Republic of Croatia

Posted by Vaic
in Commercial law, Tax law

A company is, by definition, a business entity that independently and permanently performs economic activity in order to make a profit by producing, trading goods or providing services on the market. The most common form of company that appears in Croatian practice is a limited liability company, and the minimum share capital required for the establishment of this company is 2.500,00 EUR. Frequently asked questions when founding a limited liability company mostly focus on the amount of the tax rate at which profits are taxed, and the amount of the tax rate that is applied to the payment of profits paid to...

Continue reading
07 June
0 Comments
Sticky

Tax treatment of real estate purchase in the Republic of Croatia as a citizen of a EU Member State

Posted by Vaic
in Real estate law, Tax law

If you, as citizens of EU Member States, intend to acquire ownership of a vacation home or other real estate property in the Republic of Croatia, whether for private or business purposes, your sale and purchase transaction in the Republic of Croatia is subject to a certain tax liability. You can find out more about this below. Natural persons, as citizens of EU Member States, have the same rights to acquire real estate in the Republic of Croatia as Croatian citizens, with the exception of agricultural land and real estate considered protected property under special regulations. Such citizens are considered non-residents in...

Continue reading
31 May
0 Comments
Sticky

Taxation of the payment of dividends and shares in the profit of a Croatian company regarding German tax residents

Posted by Vaic
in Commercial law, Tax law

In today’s practice, it is often the case that companies doing business in the Republic of Croatia are owned by natural or legal persons resident in the Republic of Germany.The following is an overview of the tax rates applicable to the taxation of dividend payments in case where the owner of a Croatian company is a legal or natural person and a German tax resident. I. Taxation of the company’s profit – in general The operating profit of a company with a turnover of up to 995.421,06 EUR in annual income is taxed at a rate of 10%, and the profit of...

Continue reading