Does the Croatian company need to be vat registered

No the Croatian company does not legally have to be vat/pdv registered. However there are many implications on being vat registered and you should discuss the pros and cons in more detail and depth with your accountant. The current vat rate (PDF)  in Croatia is 23%.

What are the Benefits of my Croatian company being vat registered

If you plan on renting the property then you can claim the vat *pdv* back on the majority of goods that you purchase to furnish the property. However if you claim the vat back on the goods bought for the purpose of renting the property  and do NOT rent the property as you proposed to do so then you are liable to pay the vat back with interest. If you have bought a large stone villa with 2 or 3 bedrooms, kitchen, living room, dining room then this can amount  to quite a lot. If you have bought land with the intention of building then nearly all the building materials are vatable and thus the vat can be claimed back. Any agency fees and lawyers fees incurred are all vatable and again this can be claimed back.

Advice on Vat registration for a Croatian Company

If you are buying the property just for your own personnel use and do NOT intend renting out the property then it is not worth registering for vat. Not being vat registered means that you would not be able to claim any vat back incurred during the purchase of the property such as lawyers fees. The vat threshold as in all countries changes yearly and you should discuss this more with your accountant. The current vat threshold in Croatia is 80,000 Kuna

What are the Benefits of my Croatian company being vat registered

If you plan on renting the property then you can claim the vat *pdv* back on the majority of goods that you purchase to furnish the property. However if you claim the vat back on the goods bought for the purpose of renting the property  and do NOT rent the property as you proposed to do so  then you are liable to pay the vat back with interest. If you have bought a large stone villa with 2 or 3 bedrooms, kitchen, living room, dining room then this can amount  to quite a lot. If you have bought land with the intention of building then nearly all the building materials are vatable and thus the vat can be claimed back. Any agency fees and lawyers fees incurred are all vatable and again this can be claimed back

Bez brige d.o.o is a fully licensed agency under Croatia's Real Estate Agency Law effective April 27th,2009