Do You Know How Much Property Tax You Might Pay in the Future?

The amount of property tax that citizens will pay instead of the utility fee from January 1, 2018, will depend, in addition to square footage, zone, and purpose, on two more criteria – the age and condition of the property. The condition of the property will have three different coefficients: for a property that is damaged or in a state of construction (roh bau), thus not in use, for a property that is in use, or for a property that has additional features, such as a pool, sauna, or playground. A property with additional features will also mean a higher property tax. Similarly, the coefficient will be formed based on the age of the properties, which will be divided into five different periods: up to 1940, from 1941 to 1970, from 1971 to 1987, from 1988 to 2005, and properties built after 2006, reports Opereta nekretnine.

This is proposed by the Law on Local Taxes, in which the state has determined that the coefficient for the oldest group should be 0.8, and for properties built after 2006, it should be 1.2. Since local authorities will determine the value of individual points and coefficients, it is currently impossible to accurately calculate what the amounts of property tax will be in relation to the utility fee, reports Opereta nekretnine, a real estate broker at the Croatian Chamber of Commerce.

However, in the draft law published on the Tax Administration’s website, an estimate was made for an apartment in Opatija of one hundred square meters, without specifying which coefficient for zones was taken into account. For example, for an apartment of one hundred square meters built before 1940, instead of a utility fee of 1,044 kuna per year, a tax of 853.20 kuna would be paid. However, if that apartment has additional features, the tax would be slightly over one thousand kuna. For the same apartment built before 1985, without additional features, the tax is lower than the utility fee, but for that year it equalizes, while for all properties built later, it is higher. Thus, for an apartment built in 2004, a tax would be paid that is one hundred kuna higher than the utility fee, and for one built in 2008, it would mean a tax obligation that is 200 kuna higher. However, if that apartment has additional features, a tax of 460 kuna higher than the previous utility fee would be paid. This is how the state plans to approach property tax payment based on value, reports Opereta nekretnine.