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Introduction of the property tax, which was expected from January 1, 2018, was postponed due to public pressure. Against the introduction of tax was collected more than 140 thousand signatures. Meanwhile, local municipalities send real estate forms to all owners of real estate in Croatia, which require filling in. The forms determine the type of real estate, type of use. The date of introduction of the tax remains uncertain. The rates of real estate taxation are also unclear. Whatever they are, they will meet strong disapproval from the population. Reform of the real estate tax system in Croatia has been planned for a long time in order to bring the legislation in line with the European standards. However, the lack of property assessed value for each real estate unit for a long time prevented introduction of the tax.

Good news for small and medium size companies in Croatia. From Jan 2017 corporate profit tax goes down to 12% for the companies with annual turnover of less than 3 mln kn and to to 18% for larger companies. Property transfer tax goes down from 5% to 4%. There are also some changes in personal income tax. The levy is transferred to VAT which will become 25% in tourism and catering sphere. This will make the tourists fill the budget of Croatia. Some changes will be implemented only from 2018.

EUROSTAT has released data on min salaries and wages for 22 EU countries. Top min salaries are fixed in Luxembourg (1999 eur per month), Ireland (1563 eur), Belgium (1552 eur) and Germany (1498 eur). Croatia is among the countries offering less than 500 eur as min salary (Croatian rate 433 eur per month). It is compatible with 412 eur in Hungary, 435 eur in Slovakia, 453 eur in Poland and 470 eur in Estonia.

We are happy to inform the buyer of real estate in Croatia that starting from 01/01/2017 property transfer tax in Croatia is reduced from 5% to 4%. It should stimulate real estate market in Croatia. We also remind that in case of apartment purchase from developers registered within VAT-zone, the buyers are released from 4% property transfer tax.

On Jan.27th 2016 New York Times published an article on real estate market in Dubrovnik area where ADRIONIKA was one of the contributors. You can read the whole article here shorturl.at/ajQX5 We are always happy to provide comments to press and share our professional opinion on market developments.

There is no secret that tourist industry in Croatia is one of the most stable, rising 5-6% per year due to better occupancy and prolongation of touristic season. Many investors purchase rental properties in Croatia like apartments, mini-hotels, guest houses. Apart from obligation to have official categorization of these properties (categories A,B,C as per facilities available), from 2016 all the owners of rental properties in Croatia should obtain energy certificate. It will help the country to optimize it's energy consumption. Two years before new legislation was adopted which prohibited sale and purchase of realty in Croatia without energy certificate available. In case you are planning to buy a rental property in Croatia, please, pay attention to the fact whether the property has already obtained energy certificate, it might probably be easier for the Seller to get it.

Starting from 2015 Croatia is implementing new taxation in respect of purchase of newly constructed real estate objects: in case the seller is a legal entity within VAT zone - the buyer will not pay 5% property transfer rax. This measure should minimize overall taxation of the buyer as the purchasers of newly built realty in Croatia had to pay 30% tax before: 25% of VAT inluded into purchasing price + 5% of property transfer tax. New legislation helps to avoid this double taxation. We hope that it will stimulate purchasing of new apartments and cottages and thus help the local developers who need to survive after 5 years of real estate market stagnation.

The second long-awaited aqua park Aquacolors Poreč, located in two kilometres to the south from Poreč, invites it's visitors on 16 May. With the 25 million euros investment adrenaline water park will have 17 extreme rides. The Tourism Minister Darko Lorencin commented: “This is one quality tourist project, which will undoubtedly raise the attraction of the town of Poreč”. Aquacolors occupies an area of 10 hectare space, and will be able to receive more than 5,000 visitors per day. The new aqua park offers quite an impressive range of amusements, such as: 2 looping rockers, Black Hole, Freefall, Space Boat, Spheres, Magicone, Turbolance and a 200-metre family rafting slide, beach volleyball area, wave pool, a 2,700 square metre pool, long lazy river, water rodeo, boxing ring, surf simulator, water football and trampolines. The place is going to be the largest of its kind in Croatia. Aquacolors Poreč plans to employ 14 people full-time and another 120 seasonal workers from May till the end of September. Visitors to Aquacolors Poreč can also satisfy their hungers at the number of canteens and cafes on site. There will also be offered to the guests 800 sun umbrellas and 1,000 sun loungers. Prices are...