Buying a Property in Croatia

Until recently, the purchase of a property by foreign buyers required the buyer to set up a local (Croatian) corporation, in which name the property would subsequently be purchased. Effective February 1, 2009, the country passed a series of legislative changes, which now allow all EU citizens to easily buy property in Croatia – more or less as if they were a citizen of Croatia.

When buying property in Croatia, the entire purchase process is subject to the legislation and tax laws of Croatia.

One-time purchase-and-title-transfer-related fees, which are paid by the buyer:

Property Transfer Tax: 5% of the purchase price (paid by the buyer)
Real Estate Broker’s Commission: 3% to 6% of the purchase price.
Notary Fees: approx. 2%

Ongoing Charges

Annual community fees: approx. 0.60 to 2.20 EUR/m2 of habitable area (paid by the property owner).

Other Charges and Fees

VAT on New Construction: 23% (usually, this tax is included in the listing price).
Capital gains tax if the property is resold with 3 years of purchase (equal to 35% of the capital gain).

In recent years, the prices of real estate in Croatia have increased substantially. This however doesn’t mean that there are no longer very good prices to be found. The prices for smaller apartments start at approximately EUR 70,000. When buying property in Croatia, it is important to have all paperwork and documents carefully checked over. This is because properties are often built without a permit and lack necessary and complete documentation.