Considering the global financial crisis that hit the world economy, various measures were introduced in order to direct tax policies towards the indispensable consolidation of public finances. In that regard, it became exceptionally important to effectively manage the taxation system in order to ensure the stability and development of any country’s economy. This specialist graduate master's thesis deals with the subject of treatment of real estate in the Croatian tax system and analyzes most significant real estate tax implications in other European Union member countries. The research problem and subject of this specialist graduate master's thesis is the treatment of real estate in the Croatian tax system. Books, research papers, laws and other available data sources were used to conduct the theoretical part of this thesis. Furthermore, through the research of relevant laws of the Republic of Croatia, the treatment of real estate was established from three standpoints: real estate ownership, real estate transactions and income from real estate. The empirical part of the thesis includes research and comparison of most significant real estate tax implications in other European Union member countries. Real estate tax is a form of tax used for real estate taxation, and as such is more prevalent in other European Union member countries when compared to Croatia. If real estate tax treatment in the European Union is analyzed in relation to Croatia, it can be concluded that the real estate taxation system is defined depending on the preferences of a particular country, i.e. tax treatment of real estate differs from country to country. The fact remains that taxation of real estate also has certain economic and social characteristics.