A number of different regulations and acts are applied in the tax system of the Republic of Croatia which regulate the creation and execution of tax liabilities in connection with the Real Estate Transfer Tax. This paper explains more closely the process of real estate transfer taxation in the tax system of the Republic of Croatia. The real estate transfer in the Republic of Croatia is regulated through the Real Estate transfer Law, Value Added Tax Act and The Income Tax Act which regulates the taxation of income based on the real estate alienation. Certain situations regarding the taxation of the real estate transfer are defined by the Law on the Legal Status of Religious Communities, Law on Special Areas of National Concern and the Law on the POS. The paper also explains which taxes have to be paid for the acquisition or delivery of property, such as the Real Estate Transfer Tax, Value Added Tax and The Personal Income Tax (from property), based on real estate alienation and local income tax. Furthermore, the subject to estate tax is defined, as well as the rate at which the tax is paid and the timing of tax liabilities. Also, special attention is paid to legal requirements necessary in order to be exempt from paying property sale tax. Pursuant to the provisions of the Value Added Tax Act, special attention is paid to taxation in case of real estate construction and transfer. It is important to emphasize the fact that acqusition of a property is not subject to real estate taxation in case value added tax is paid for its delivery.