Purchasing real estate in Croatia involves several tax obligations and additional expenses that are important to understand in order to avoid surprises during or after the purchasing process. Below, we explain in detail the most important financial aspects relevant to buyers.
Real estate transfer tax Real estate transfer tax amounts to 3% of the estimated market value, as determined by the local tax authority. The tax liability is reported by a notary public after certification of the sale and purchase agreement. VAT on real estate purchases Newly built real estate sold by a legal entity are subject to VAT at a rate of 25%.
In such cases, real estate transfer tax is not payable.
Notary fees and court fees When purchasing and selling real estate, costs arise in the form of notary fees for certifying an agreement, and court fees for registering ownership. These costs usually do not exceed EUR 100.
Authentication of a loan agreement If real estate purchase is financed by a loan, the agreement is authenticated before a notary public. The costs of authentication depend on the amount of the loan. For example, for a loan of EUR 150,000, the cost is up to EUR 800.
Agency fee The Biliškov agency fee amounts to 2-3% + VAT of the agreed purchase price and includes the cost of a lawyer for a detailed analysis and verification of the legal status of the property, including the drafting of sale and purchase documents.
Lawyer’s fee (without agency brokerage) If the real estate is purchased without agency brokerage, the usual lawyer’s fee for drafting of sale and purchase documents amounts to 1% + VAT of the agreed purchase price.
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