Real estate transaction tax in Croatia

When buying real estate in Croatia, it is important to know about the one-time tax that is applied during the transaction itself. This tax is called real estate transfer tax (Real Estate Transfer Tax).

When is real estate tax paid?
Real estate sales tax is paid for every real estate purchase in Croatia, whether you are a resident of the country or a foreign buyer. After signing the sales contract, the buyer has the obligation to submit a tax return to the local tax administration within 30 days of signing the contract. This tax is one-time and applies to all types of real estate, including apartments, houses, land and business premises.

Tax exemption
In certain cases, the buyer may be exempt from paying real estate sales tax, for example:

When buying a new building from a developer, who is liable for VAT, instead of real estate sales tax, VAT is paid, which usually amounts to 25% of the price. In this case, no additional real estate transaction tax is payable.

Tax amount
The current tax rate on real estate transactions in Croatia is 3% of the market value of the real estate. The tax is not calculated on the basis of the purchase price specified in the contract, but on the basis of the value determined by the tax administration based on expert assessment or market prices in the area.

Who pays the tax?
In most cases, the buyer is responsible for paying the tax, although this can be agreed in the contract between the seller and the buyer. The seller is not obliged to pay tax unless he sells the property as part of his business activity.

The purchase of a first apartment for one's own needs can be exempted from this tax under certain conditions, especially for Croatian citizens who meet certain criteria.
Important steps after purchase
After paying the real estate transfer tax, it is necessary to register the real estate in the land register at the local cadastre. Registration is important because it ensures legal protection of your property rights.