Croatia

Real estate websites
STEPS
Check Eligibility
- Non-Residents: Foreigners are allowed to buy property in Croatia, but non-EU nationals face restrictions on purchasing land. For land ownership, foreign buyers may need to establish a Croatian company or purchase property through a local entity.
- Financing: Foreigners can access financing from Croatian banks, but most banks require a larger down payment (typically 30% to 40%) and may have specific eligibility criteria.
Determine the Budget
- Budgeting: It is important to determine the overall budget, considering the cost of the property, taxes, notary fees, and other transaction-related expenses.
- Mortgage: If financing is required, Croatian banks generally offer mortgages, but the buyer is usually expected to cover 30% to 40% of the purchase price upfront.
Find a Property
- Online Search: Croatian property websites such as Njuškalo (njuskalo.hr) and Crozilla (crozilla.com) offer a range of properties for sale, which can be filtered by price, location, and other factors.
- Real Estate Agents: Working with a local real estate agent can help navigate the property market and assist with negotiations and legal formalities.
View the Property
- Inspections: It is recommended to schedule a property inspection to assess its condition, including structural integrity, plumbing, and electrical systems.
- Visiting the Property: If not located in Croatia, it is possible to have someone visit the property on behalf, or a virtual tour may be arranged.
Make an Offer
- Bidding: In Croatia, the buying process is generally based on negotiations between the buyer and seller. An offer can be made, and negotiations can occur before finalizing the agreement.
- Contract: Once the offer is accepted, a preliminary agreement is signed, and a deposit of 5% to 10% of the purchase price is typically required.
Complete Legal Formalities
- Property Transfer Tax: Croatia charges a property transfer tax of 3% of the purchase price or the tax-assessed value, whichever is higher.
- Finalizing the Sale: After signing the preliminary agreement, a notary will handle the transfer of property and registration with the Land Registry. The final payment is made, and ownership is transferred.
Register the Property
- Notary Registration: The notary will complete the registration of the property with the Croatian Land Registry, ensuring the legal transfer of ownership.
- Insurance: Property insurance is advisable to protect the property after the transfer is complete.
Move In
- After completing all formalities, the property is ready for occupancy.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: It is recommended to consult a local lawyer to ensure the process complies with Croatian laws, especially for foreign buyers.
- Taxes and Fees: Additional fees, such as notary fees, maintenance, and property taxes, should be taken into consideration when planning the property purchase.
ADDITIONAL NOTICES
- Property Transfer Tax: A property transfer tax of 3% applies in Croatia, based on either the purchase price or the tax-assessed value, whichever is higher.
- Land Ownership Restrictions: Foreign buyers who are not EU nationals may face restrictions on owning land directly in Croatia. A Croatian company or local entity may be required for land purchases.
- Mortgage Financing: Croatian banks may require foreign buyers to provide a larger deposit, generally between 30% and 40% of the property's value.

In Croatia, real estate taxes are regulated by the national government and local municipalities. The key types of taxes related to real estate in Croatia include:

Property Ownership Tax

Property Tax: In Croatia, property tax (Porez na nekretnine) is a municipal tax, and it applies to both residential and commercial properties. The tax is calculated based on the market value of the property or its estimated value.

  • The property tax rate is set by each municipality but generally ranges from 0.2% to 1.0% of the property’s value per year.
  • The tax is typically paid annually, and the property owner is responsible for the payment.
  • Municipalities may offer exemptions or reductions in certain circumstances, such as for primary residences or properties in rural areas.
Real Estate Transfer Tax

The real estate transfer tax (Porez na promet nekretninama) is levied when a property changes ownership, such as during a sale or inheritance.

  • The standard transfer tax rate is 3% of the property’s purchase price or the market value, whichever is higher.
  • There are exemptions for the transfer of property between close family members (spouse, children, parents) under certain conditions.
  • The buyer typically pays the transfer tax, unless otherwise agreed in the sale contract.
Capital Gains Tax on Real Estate

Capital gains tax is applied when a property is sold at a profit. However, exemptions may apply for primary residences under certain conditions.

  • The general capital gains tax rate is 10% on the profit made from the sale of the property (the difference between the sale price and purchase price).
  • For properties owned for more than 2 years, the sale may be exempt from capital gains tax, particularly if the property was used as a primary residence during that time.
  • If the property was used for commercial purposes or if the seller is a company, capital gains tax is still applicable.
Inheritance and Gift Tax

In Croatia, inheritance and gift taxes are regulated at the national level, and the tax rate depends on the relationship between the deceased and the beneficiary.

  • For transfers between close family members (spouse, children, parents), inheritance and gift tax rates are low, ranging from 3% to 5%.
  • For other beneficiaries, the tax rate can be higher.
  • The tax is levied on the market value of the property at the time of inheritance or gifting.
Municipal Tax

In addition to property tax, some municipalities in Croatia may impose additional local levies or charges for certain types of real estate, such as for the use of public infrastructure or services.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to both federal and municipal income taxes. The tax rate depends on the total income and the tax bracket of the property owner.

  • Rental income is taxed as part of the overall personal income tax, with rates ranging from 12% to 40%, depending on the income level.
  • Property owners can generally deduct expenses related to the property, such as maintenance costs, property management fees, and mortgage interest, from their rental income.
  • For rental properties used in the tourism sector (e.g., short-term rentals), additional tax rules may apply.
Note: Tax rates and regulations can vary by municipality, and exemptions or reductions may apply based on specific circumstances. It is recommended to check with local authorities or consult a tax professional for accurate information.
Official
Republic of Croatia
CIOC
CRO
Subregion
Southeast Europe
Borders
BIH
HUN
MNE
SRB
SVN
Capital
Zagreb
Area
56 594 km²
Population
4 047 000
Timezones
UTC+01:00
Phone
+385   
Currencies
Euro (EUR €)