Costs of buying a property in Croatia
All advertised property prices represent values wanted by the sellers. If particular property is in the VAT system, VAT is already included in the asking price, unless stated otherwise. When buying a property in Croatia, every buyer should be aware of additional costs on the top of the finally agreed price - our brokerage commission, lawyer's fee and real estate transfer tax. Those costs may vary from 4,25% to around 8,25% of the property price, as described below. Please make sure to calculate them in your total budget to avoid unpleasant surprise.
Brokerage commission – 3%
Right Property Croatia charges brokerage commission of 3% from the finally agreed property price, but not less than 2.500 EUR. Our Terms and conditions are clearly stated and included in our real estate brokerage agreement which must be signed between us and the buyer before revealing exact property location and/or taking a viewing trip.
Our commission is due when the sale-purchase contract has been signed and paid for. If the price is paid in stages, brokerage commission will accordingly follow the percentage of the payment stage.
Legal fees – 1,25% (1%+VAT)
Legal fees include the work performed by the lawyer to investigate the title, legality, draw precontract and/or contract and apply for the ownership registration in your behalf. The fee is 1,25% (1%+VAT) from the finally agreed property price, but not less than 1.250 EUR (1.000 EUR+VAT). Half of the lawyer's fee is paid upfront (before the precontract is made) and the other half when the application for the ownership registration has been submitted.
(Pre)contracts are made in Croatian (as an official language) and English. Should you need official translation to any other language, you will have the cost of Court interpreter. If you will incorporate the company, keep in mind the costs specified in the buying guide.
Real estate transfer tax – none or 3%
Real estate transfer tax (equivalent to stamp duty) is 3% and paid by every buyer (domestic or foreign). Notary public will send the tax application automatically when the sale-purchase contract is notarized. You may expect to receive Tax payment order quite quickly which you will need to pay within the following 15 days.
Property sold by private entity (person out of VAT system) or property built before the implementation of VAT (1 January 1998) will be taxed with 3% rate.
Property sold by VAT-registered entity, built between 1 January 1998 and 31 December 2014, will be taxed with 3% rate. However, the basis of tax assessment shall not be the entire value of the property, but only its smaller portion related to the value of the land and infrastructure contained in the price. This is because the construction itself has been taxed with VAT (which you will pay through the property price).
Property sold by VAT-registered entity, built after 1 January 2015 will be entirely taxed with VAT (which you will pay through the property price). Therefore, no real estate transfer tax will be applied.