In addition to the real estate prices in Croatia, which are determined by the seller, the buyer needs to be aware of the additional costs he/she will be charged when buying real estate. Usually these costs vary from 5 - 8%, and depend on several factors.
REAL ESTATE TRANSFER TAX 3% OR 0%
The real estate transfer tax in Croatia is 3% and is paid by the acquirer of the real estate - the buyer, regardless of whether or not he/she is of the Croatian citizenship. The buyer does not have to report the sale to the tax office, but the notary public does so at the time of verification of the sales contract. In practice, the tax administration sends a decision on the obligation to pay the real estate transfer tax by post to the buyer's home address with the exact amount and payment instructions, usually 15-30 days following the date of verification of the sales contract. The real estate transfer tax should be paid within 15 days from the delivery date of the decision determining the real estate transfer tax.
The real estate sold by a company (or less often by a natural person) that is within the VAT system is subject to VAT. In this case, there is no real estate transfer tax of 3% because the VAT rate 25% is already included in the purchase price. If the buyer will use the purchased real estate for commercial purposes (e.g. he/she will be engaged in vacational rental), he/she may be able to get a VAT refund.
INTERMEDIARY COMMISSION - 3% + VAT
The usual real estate agency fee when buying real estate in Croatia is 3% + VAT. In case the purchase is realized, by signing a brokerage contract with the real estate agency, the buyer undertakes to pay a brokerage commission.
LAWYER'S FEE - 1% + VAT
Legal services, i.e. lawyer services usually amount to 1% + VAT. Depending on the complexity and duration of the work, the amount may be smaller or higher.
NOTARY / COURT FEES
In the standard purchase and sales process, in which the signatures of the parties, the notary / court registration fees are verified, they rarely exceed the amount of approx. 200 euros. In the event that the parties agree on a process that involves depositing money or documents with a notary public, the price is determined before the process depending on the amount of the purchase price and the period of deposit.
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