March the 28th, 2022 - Remember that old saying about the only two certain things in life being death and taxes? Croatian residents and property owners providing free accommodation to Ukraine refugees escaping war following the Russian invasion of their country must still pay tax despite their good (and free) deed.
As Poslovni Dnevnik writes, Croatian residents who own property and who are receiving Ukraine refugees in their apartments and houses will still have to pay taxes despite making their offer free. The fact is that private landlords in Croatia must sign a lease agreement with Ukrainian refugees who they want to provide a home for in their house or apartment, and tax must be paid on that, even if the rent agreement is signed at zero kuna, the Tax Administration said, Slobodna Dalmacija reports.
According to the Income Tax Act, if the rental amount is reported below the market price - which includes free rent - then the Tax Administration determines the rental price according to the standard rental prices for the place where the property is located. It is a legal mechanism used to avoid an agreed reduction in the rental price between the private landlord and the tenant.
If it weren't set out as such, the two parties could agree to write 10 kuna below the value of the rent on the lease agreement, even though it is actually 200 euros per month, and as such, the landlord would pay less tax (and Lord knows, we can't possibly have that, can we?!).
"These are the rules for now and we can't change that, but it will probably be regulated differently once the announced aid package from the European Union (EU) is approved,'' they explained from the Tax Administration when commenting on this situation which some believe is punishing them for a good deed.
According to the latest data, 9,660 displaced Ukraine refugees have entered the Republic of Croatia so far, most of them being women and children, as Ukrainian men below a certain age typically stay and fight.
Most of these Ukraine refugees are accommodated in private accommodation, ie in apartments provided by Croatian residents. This figure totals 8322 people, ie approximately more than 2000 families. There are 23 of them in reception accommodation, and 1255 in collective accommodation.
For more on the Ukraine crisis and what Croatia is doing to help displaced persons, check out our politics section.
