Buying property in Croatia can be a dream come true—but what about the extra costs that come with it? If you’re a foreign buyer planning to invest in real estate here, understanding the taxes and fees involved is essential for budgeting and avoiding surprises during the purchasing process.
In this guide, we break down the key financial obligations you can expect when buying property in Croatia.
1. Property Transfer Tax (Real Estate Transfer Tax)
In most cases, when buying a used property (i.e., not newly constructed), the buyer pays a real estate transfer tax of 3% of the property’s market value. This value is determined by the local tax authority and may differ slightly from the purchase price.
✅ Who pays it? The buyer.
✅ When is it due? Typically within 15 days of receiving the tax notice.
Exemptions may apply, such as when purchasing a newly built property (see VAT below), or in cases where the property is transferred between close family members.
2. Value Added Tax (VAT)
If you’re buying a newly constructed property from a company (e.g., developer or business entity), VAT applies instead of the real estate transfer tax.
-
VAT rate: 25% (included in the price)
-
Applies to: New builds, commercial properties, and land in some cases.
Important: VAT is usually already included in the listed price when purchasing from a company, but it’s wise to confirm this with your agent or lawyer.
3. Notary and Legal Fees
Notary services are mandatory in Croatia for real estate transactions. Notaries verify signatures and documents, and their fees are regulated.
-
Typical notary fee: Approx. 0.5% to 1% of the property’s value, depending on complexity.
-
Lawyer’s fee: Usually 1% to 1.5%, though it can vary. Hiring a lawyer is not legally required, but highly recommended—especially for foreign buyers.
4. Land Registry and Administrative Costs
Once the sale is completed, the property must be registered in the Land Registry. Costs are modest:
-
Land registration fee: Approx. €40–70
-
Court stamp duties and admin fees: Small flat-rate charges depending on the region
5. Real Estate Agency Commission
If you’re buying through an agency, you’ll likely pay a commission of 2–3% (+VAT), unless otherwise negotiated. Some agencies charge the seller instead, so it’s important to clarify who pays the fee before starting the process.
6. Currency Exchange and Banking Costs
For non-eurozone buyers, currency exchange fees and international transfer costs can impact your budget. Use a specialized foreign exchange provider or discuss options with your bank to minimize costs.
7. Tips for Budgeting Properly
-
Plan for around 5–7% of the purchase price to cover all taxes and fees.
-
Confirm all amounts in writing before signing the pre-contract.
-
Work with a local lawyer or real estate expert who understands the nuances of Croatian law and bureaucracy.
-
Ask for a detailed cost estimate early in the process to avoid surprises.
Conclusion
Croatia’s property market offers excellent opportunities, but it’s vital to understand the full financial picture. By being aware of the taxes, legal fees, and potential hidden costs, you’ll be better prepared to make a smart investment and enjoy a smooth buying experience.
Need help navigating your property purchase in Croatia?
Our team at Croatia Property & More is here to guide you through every step—from finding the right home to handling the paperwork.
Contact us for expert advice and personalized support.