Understanding the taxes associated with buying and owning a property is essential. Here’s a simplified breakdown:
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Purchase Tax:
- For properties up to €150,000, the tax is 3% of the property value.
- For properties over €150,000, the tax is €4,500 plus 5% of the amount exceeding €150,000.
- For properties over €500,000, the tax is €22,000 plus 6% of the amount exceeding €500,000.
Remember, purchase tax is due when you sign the main contract. It’s wise to pay it promptly to avoid daily interest charges. In some cases, off-plan developments may be exempt, but check with your lawyer to confirm if this applies.
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Annual Property Tax:
- The amount varies based on your property’s size and location.
- For instance, a two-bedroom apartment may incur approximately five to seven hundred euros per year.
- Additionally, property owners must pay Tourist Tax ( a holiday home tax), distinct from the daily tax visitors pay.
Expect to receive the bill in Spring, and you can settle it at the Tax Office (Poreska Uprava).
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Other Taxes:
- Income tax applies to rental income.
- Capital gains tax is applicable when selling the property.
Understanding and fulfilling these tax obligations is crucial for a smooth property ownership experience. Feel free to consult with a legal professional for personalized guidance.