Buying a property is a big financial step and requires careful selection of the perfect property to live in. Many people consider real estate to be the best investment of their lives, and once they can afford to buy it, they start choosing the right real estate. It is very important that when making a purchase decision, you know the maximum budget you are willing to go to.
When forming a budget, you must also take into account other costs. For example, if the property you intend to buy requires adaptation before moving in, then its price and the cost of adaptation should be in your budget. Many people do not take into account additional costs when buying and use the entire budget to buy real estate, which later requires additional investments or costs.
Don't forget the tax either. Tax is an integral part of every purchase and sale, and it varies depending on the value of the goods. Real estate sales tax is much higher, due to high real estate prices, and it is very important that you are properly informed about who has to pay it and whether there is a possibility that you are exempt from payment. Through this text, we will inform you about real estate sales tax and the ways in which you can make the whole buying process easier.
Real estate tax
Every person who buys, inherits or otherwise acquires real estate, construction or land is liable for real estate sales tax. The tax rate is 3% of its value (according to the market value) at the time of acquisition of the property. Therefore, the market value of the real estate at the time of tax liability represents the tax base.
Persons exempted from paying taxes
According to the Real Estate Sales Tax Act, there are certain cases when a person is exempt from paying VAT. Some of them are citizens who:
- They reacquire the property that was taken from them
- Refugees who acquire real estate by exchanging their own real estate from abroad
- Tenants who buy real estate or an apartment in which they currently live, which is confirmed by a rental agreement.
- People who buy real estate in which they have occupancy rights.
- Persons who acquire real estate according to the regulations of conversion of social property into another form of ownership.
- Persons who acquire real estate under a lifetime (or lifetime) maintenance contract. These can be spouses or common-law partners, descendants and ancestors, life partners or adoptive parents.
- Persons who acquire the remainder from joint ownership with another person.
Persons who are exempt from paying taxes differ according to the basis of exemption. According to the basis of the exemption, the necessary documents for the decision are attached.
Registration of real estate tax
Real estate tax declaration after 01.01.2017. performed by courts, public law bodies or notaries public. Each document requires certification by a notary public and a tax report to the Tax Administration, which is responsible for the respective place where the property is located. The application must be made within 30 days after the compilation.
In the event that the value of the real estate is not declared in the document, then the Tax Administration makes a payment according to the assessment of the market value of the real estate.
Tax is paid within 15 days after delivery of the decision. The decision on the determination of real estate sales tax provides information on how much tax the taxpayer is required to pay.
Of course, if you intend to buy real estate yourself, it is very important that you study the Real Estate Transfer Tax Act in detail, which is available at the link: https://www.zakon.hr/z/69/Zakon-o-porezu-na-promet-nekretnina
The real estate agency will help you
In case you have no experience with buying real estate and dealing with legal processes yourself, it is very important to hire help. Solving and collecting paperwork can cause real stress in people, and you are never sure if you have done everything according to the regulations. Therefore, our advice is to always hire a real estate agency when buying or selling real estate.
There are several reasons why hiring an agency is an advantage:
- Quick finding of real estate or buyers when selling
- Simple guidance through all necessary legal obligations and documentation verification
- Sale or purchase on a turnkey basis
If you think that hiring an agency is a waste of money, you are wrong. As a rule, the agency, due to its reputation on the market and numerous clients, achieves significantly better prices, and the commission they take is very small for what you get.
You can read all the reasons why hiring an agency when buying or selling real estate is an advantage in the text Why hire a real estate agency? http://pantovcak-nekretnine.hr/zasto-angazirati-agenciju-za-nekretnine/
