Taxes have been a part of life from the earliest civilizations and have been levied by the states through all this time and that without any special instantaneous favour in return. They've been used, and are still used to this day, as resources to finance public expenditure. One of the most important tax is the Real Estate transfer tax. In this paper we are speaking of the sole concept of taxation, as well of the term of Real Estate in terms of taxation, incurrence of the tax liabilities, tax base and tax exemptions. We are also addressing the modification of tax rates from passing the first Real Estate transfer taxation Law to this day. And we will learn in which cases the Real Estate is taxed by VAT. We also find the Real Estate taxation issues both in the enforcement proceedings and in the bankruptcy proceedings. The question that arises is who should be taxed and which tax should be used in Real Estate transfer in those proceedings, and we find out that it greatly depends on various paramaters. Joining the European Union, the Republic of Croatia has started working on coordination of taxes with those in the rest of the member states. So in the near future we are up for the reformation of Real Estate transfer taxation system by introducing the single Real Estate tax. Furthermore, opening up to the European Union we also open up the doors for foreigners, citizens of the other member states, to acquire Real Estate on Croatia's territory under the same condition as citizens of Croatia.