Taxes

TAXES for foreigners

If you decide to buy a boat in Croatia you must be aware of the tax system in force.

As foreigners you have three options:

1. You can register the purchased boat under the Croatian flag

In that case there are several options:

-          If you are buying the boat from a company that had been renting the boat and VAT (23%) and special tax had not been paid, those taxes need to be paid at the time of registration,

-          If you are buying the boat from the company that had not been renting the boat and that had paid VAT and special tax, you do not have to pay any additional taxes,

-          If you are buying the boat from a private person you have to pay tax in the amount of 5%.

2.  You can register the purchased boat under a foreign flag and leave it in Croatia

Again, there are several options:

-          If you are buying the boat from a company that had been renting the boat and VAT (23%) and special tax had not been paid, the advertised price is then the price you are actually paying and no additional taxes are to be paid.

-          If the boat had been registered to a company that had not been renting it and VAT and special tax had been paid, you are entitled to a tax return of 18.6% since you are going to register the boat under a foreign flag,

-          If you are buying the boat from a private person you, you do not need to pay any additional taxes.

In order to acquire the right to register the boat under a foreign flag, the boat needs to leave Croatian territorial waters and return to Croatia.

3. You can export the purchased boat from Croatia and register it in your own country

In this case, the rules referring to the registration of the boat in Croatia are applied.