Costs of buying a house in Croatia as a Foreigner

All posted property prices represent values desired by the sellers. If this property is in the VAT system, VAT is already included in the asking price, unless mentioned differently. When buying a home in Croatia, every buyer should be informed of additional fees on the top of the eventually negotiated price – commission, lawyer’s fee and real estate transfer tax. Those fees may vary from 5 percent to roughly 8 percent of the property price, as indicated below. Please make sure to calculate them in your total budget to avoid unpleasant surprise.

Brokerage commission – 3 percent +VAT

We charge brokerage commission of 3 percent +VAT from the finally agreed property price. 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.

Buyer commission is required 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 expenses – 1 percent +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 cost is 1 percent +VAT from the finally negotiated property price. Half of the lawyer’s fee is paid beforehand (before the precontract is established) and the other half when the application for the ownership registration has been filed.

(Pre)contracts are made in Croatian (as an official language) and English. Should you require official translation to any other language, you will have the fee of Court interpreter. If you will incorporate the firm, keep in mind the charges indicated in the purchase guide.

 

Real estate transfer tax – none or 3 percent

Real estate transfer tax (equal to stamp duty) is 3 percent and paid by every buyer (domestic or international) (domestic or foreign). Notary public will transmit the tax application automatically after the sale-purchase contract is notarized. You may anticipate to obtain Tax payment order relatively fast which you will need to pay within the next 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 percent rate.

Property sold by VAT-registered firm, built between 1 January 1998 and 31 December 2014, will be taxed at 3 percent 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 charged with VAT (which you will pay through the property purchase) (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) (which you will pay through the property price). Therefore, no real estate transfer tax will be applied.

 

Cotact us to buy or sell property in Croatia quickly online.

 

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