Tax

Tax

Taxation of income from the alienation of real estate

The income tax liability realized through the alienation of real estate (usually by sale) is regulated by the provisions of the Income Tax Act. In this case, it is about income from property and property rights based on the alienation of real estate.
Dohotkom od imovine i imovinskih prava smatra se i dohodak koji porezni obveznik ostvari od otuđenja nekretnina i imovinskih prava. U pravilu govorimo o otuđenju: jedne nekretnine ili tri i više nekretnina.
Alienation is considered a sale, exchange, and other transfer. Income is the difference between the receipt determined according to the market value of the real estate or property right that is being alienated and the purchase value increased by the growth of producer prices of industrial products. Disposal costs may be deducted as expenses. Income from the alienation of real estate is not taxed if the real estate was used for housing by the taxpayer or dependent members of his immediate family, and also in the case if the real estate or property right was alienated after two years from the date of acquisition.

When is income from the alienation of real estate and property rights taxed?

Income from the alienation of real estate and property rights is taxed if more than three real estates of the same type or more than three property rights of the same type have been alienated (sale, exchange and other transfer) in a period of five years, unless the real estate is expropriated under a special law, if lands whose individual area is up to 250m², and a total of up to 1000m² are alienated. If a building with several flats or business premises or construction land or several land plots is alienated, each apartment, business premises, construction site or land plot is considered one real estate. Income is the difference between the total amount of income determined according to the market value of real estate or property rights that are alienated over a period of five years and their purchase value increased by the growth of producer prices of industrial products, and investment costs for which the taxpayer has authentic documents.
Oporezivanje dohotka ostvarenog od otuđenja nekretnine
Oporezivanje dohotka ostvarenog od otuđenja nekretnine

What is the tax rate ?

The advance income tax from the alienation of real estate and property rights is paid by taxpayers according to the decision of the Tax Administration once on an individually earned receipt, within 15 days from the date of receipt of the decision of the Tax Administration on the determined income tax. The advance is determined from the tax base (income is the difference between the receipt determined according to the market value of the real estate or property right to be alienated and the purchase value increased by the growth of producer prices of industrial products) by applying a rate of 24%. A surtax on income tax is calculated on the determined amount of income tax.

Who pays the advance?

Advance income tax from the alienation of more than three properties of the same type or more than three property rights of the same type in a period of five years shall be paid by taxpayers according to the decision of the Tax Administration once within 15 days of receipt of the decision of the Tax Administration. on the total realized receipt from the alienation of real estate of the same type or property rights of the same type in that period, which is made after the alienation of the fourth real estate of the same type or the fourth property right of the same type.

For each further alienation of real estate of the same type or property right of the same type in the period of five years in which the income from alienation of real estate of the same type and property rights of the same type is determined, a new decision is issued for that real estate or property right. The advance is determined from the tax base by applying a rate of 24%. A surtax on income tax is calculated on the determined amount of income tax.