Rich To Find Loop Holes In New Real Estate Tax Bill

Croatia’s new Minister of Construction says that the rich will find loop holes in the new real estate tax bill to avoid paying the proposed 1.5% tax on the value of unused real estate.

“Those more wealthy will find a way – empty properties they will turn into business spaces, which they will rent to themselves and will end up paying less tax on the rental. The middle class will be the ones hit, those who have saved for 30-40 years. A lot of people in Croatia saved in ‘real estate’, said Minister Anka Mrak Taritas to Novi list.

Croatia is set to introduce a new real estate tax bill on 1 April 2013 which will see all property taxed a flat rate of 1.5% of the appraised value of the property . There will be large tax reliefs for properties that are used but no tax relief for unused properties.