Like a TMK structure, these distributions can be deducted from GK`s revenues under the TK agreement as deductions (as defined in the rules published by the NTA). In order to benefit from this treatment, the TK agreement should stipulate that the role of investors is limited to passive investments. In practice, it is customary for the management of the GK operator to be outsourced or handled by an investor subsidiary. While profit distributions (dividends) may be considered deductions on business income, these distributions remain subject to withholding tax of 20.42%, subject to reductions in the current double taxation agreements. In summary, GK-TK has advantages very similar to a TMK: the direct acquisition of real estate assets by foreign investors of the value of an EU citizen (individuals or legal entities) is reciprocal (i.e. Croatian citizens are allowed to acquire real estate in the investor`s country of origin) and requires written approval from the Ministry of Justice. As a general rule, agricultural land and forests cannot be purchased by foreigners unless there is an international agreement that provides for other land. By law, the company itself does not have legal personality. All assets of the partnership are owned by the manager; However, anonymous partners are entitled to a share of the company`s profits, as stipulated in the partnership agreement.
Anonymous partners are only limitedly responsible for the company`s debt, provided they are anonymous. If an anonymous partner authorizes the use of its name in the manager`s name or in the name of the partnership, the anonymous partner loses its limited liability.  This structure is i) a GK real estate company with (ii) an enterprise agreement that together forms a tokumei kumiai (TK). A TK is a form of (tacit) partnership based on an agreement between TK and GK investors as tK operator. As part of a GK-TK structure, a GK is created as a destination vehicle, whose objective is to hold assets (z.B. shares of real estate fees, fiduciary interest (TBI), etc.). Once an investor is identified, the investor enters into a TK agreement with GK as a TK trader. GK acts in the same way as a competitor in a single limited partnership under U.S. law. The process of bundling a GK is simple as described above.
Once GK is formed, TK investors will enter into the TK contract with GK. The TK contract can be signed at any time after the creation of GK and the wish of GK and the investor. The TK agreement is not submitted or made available to the public. A tokumei-kumiai (TK) is a form of partnership based on an agreement between a denkotoren (i.e. investors) (i.e. investors) or tokumei-kumiai-in) and a GK (as operator of TK or eigyosha). As part of a GK-TK structure, a GK is created as a destination vehicle, whose sole purpose is usually to hold assets (e.g.B. shares in toll real estate or TBI). The process of bundling a GK is simple as described above.
The TK agreement can be signed by TK partners and a GK at any time, but only after the creation of GK.