Italians, Belgian citizens, and wealthier French individuals are already paying property taxes in Croatia. However, they are paying them into the budgets of their own countries. In fact, these countries have what are known as wealth taxes, which are also levied on properties in other countries, including Croatia.
French citizens whose net worth exceeds €1.3 million pay a progressive tax rate of 0.5% to 1.5% of the value, Italians pay 1.06% based on the market price of the property or the price at which the property was purchased, while Belgian citizens pay 20% to 50% of the estimated rental value assigned to the property by the authorities.
Given that Croatia has signed a number of agreements to avoid double taxation, we were interested in whether residents of these and other countries who have purchased properties in Croatia will continue to pay taxes in their own countries. Particularly, Italians who own a number of properties on the Croatian coast, especially in Istria. However, the Tax Administration responded that with the introduction of property taxes, foreigners will be taxed in Croatia.
– The Republic of Croatia has the right to tax properties located in the Republic of Croatia that are owned by residents of other countries, regardless of whether the Republic of Croatia has an agreement with another country to prevent double taxation or not – the Tax Administration responded to us.
