President Josipovic: Not Sure We Are Ready For Real Estate Tax

Croatian President Ivo Josipovic believes urgent reforms are needed to be made if Croatia expects to attract investment. Josipovic, who is a professor of law, agreed during an interview on Nova tv that the investment climate in Croatia was not in good shape.

“It is now a fact that nobody denies. I look at it as a lawyer, I think we have a lot of over-complicated regulations and overly complicated procedures that are sometimes taken advantage of for corruption and here we need to be open,” said Josipovic.

The President also commented on the new real estate tax law which is set to come into effect on 1 April 2013, which among other changes will see  unused properties hit with a 1.5% tax on 75% of the value of the property.

“When it comes to real estate tax, I think that Croatia has not yet come to that ideal tax system where the tax base is relatively broad and those who are wealthier contribute significantly more. What is evident is that its (the new tax) possible introduction was not accompanied by an appropriate introduction – to inform the public what, how and why, so even now we do not know exactly what it will be until it comes out. I do not know if we’re ready for its introduction, if reforms are made we are, if they are not, we are not,” concluded Josipovic.