Euro Immobilien in the Slovenian media – review on the real estate transfer tax
In the Slovenian business magazine Finance, on April 28th, 2014, an article on the topic related to the announcement of the Croatian Government on the introduction of real estate transfer tax and its impact on the real estate market in Croatia was published. Given that the Slovenes are traditionally the most numerous buyers of real estate in Croatia, especially on the island of Krk, we were honored to give a review on that topic.
We are publishing a part of the statement given by Denis Šikljan, general manager of the agency Euro Immobilien:
When it comes to announcement on the introduction of tax on property ownership, in our opinion the entire issue and its consequences are oversized and current public speculations concerning the introduction of tax are too exaggerated.
Specifically, prior to the accession of Croatia into the EU zone, there were speculations about the boom in sales of Croatian real estate to the citizens of the European Union, and this boom, of course, did not happen. Likewise, we believe that the introduction of real estate transfer tax will not significantly affect the purchase of real estate, i.e., the growth or drop of sales.
It is realistic to expect that the real estate transfer tax will be in the same amount as the local rate the property owners are paying to the local self-government; only for certain types of property it will be higher. In fact, so far only the surface of the property was a parameter for determining the amount of the rate, while the parameters for the new tax will be surface and value of the property.
Therefore, in the future the owners of certain properties will pay a slightly higher tax than now, while the others will pay the tax in the same amount as before.
Therefore, in our opinion the introduction of real estate transfer tax will not significantly affect the real estate, neither in a positive or in a negative way, because the buyers of real estate on the Adriatic coast are mostly people with high purchasing power, who are paying real estate transfer tax in their home countries as well.
In the future, the real estate business on the Croatian coast will be mostly impacted by the state of economies of the countries that are eminent to us. If in these countries the businessmen will create an additional value and if there will be further growth and development, the state of the real estate market on the Adriatic coast will be better.
The article was published at the partner portal Si.biznis-plus.com as well. You can read it at the following link:
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