Buying real estate in Croatia has been extremely popular among Poles for years. The picturesque Adriatic coast, stable tourism market, and the availability of apartment rentals mean that many people consider buying a house or apartment in Croatia both a dream come true and an investment. However, before signing a contract, it’s worth thoroughly understanding all the taxes and additional fees associated with such a transaction.
In practice, the price listed in the ad is only the beginning of the costs. Taxes, notary fees, translation costs, agency fees, and property registration fees must be added to the property price. A good understanding of the regulations helps avoid unpleasant surprises and better budget planning.
Can a foreigner buy real estate in Croatia?
Polish citizens, as residents of the European Union, can purchase real estate in Croatia under virtually the same conditions as Croatian citizens. This applies to apartments, houses, and building plots.
The purchase process is usually relatively smooth, especially if the property’s legal status is clear and the property is registered in the land and mortgage register. However, it’s important to remember that each transaction requires thorough document verification and is best handled with the support of a local lawyer or an experienced real estate agency.
Real estate transfer tax
The most important tax when purchasing real estate in Croatia is the property transfer tax, or “Porez na promet nekretnina” in Croatian. Currently, the rate is 3% of the property’s market value. [1]
This tax primarily applies to properties purchased on the secondary market, meaning from a private individual or a company that doesn’t sell the property under the VAT system.
In practice, this means that if you buy an apartment for €300,000, you should prepare an additional €9,000 for the property transfer tax alone.
It’s worth noting that the Croatian tax office can independently assess the property’s value. If the price listed in the contract is significantly lower than the actual market value, the office may charge tax on the higher amount. [1]
When is the 3% tax not paid?
There is an important exception to this rule. If the property is purchased from a developer and the transaction is subject to VAT, the buyer no longer pays additional transfer tax. [2]
This is crucial information for those interested in new apartments or development investments on the Adriatic. In such cases, VAT is usually included in the property price.
VAT on real estate purchases
In Croatia, the standard VAT rate is 25%. [3]
VAT may apply to the purchase of:
- new apartments and flats,
- buildings completed less than two years ago,
- building land,
- real estate sold by VAT-registered companies.
For the buyer, this means that the gross price already includes VAT and there is no additional 3% transfer tax. In practice, many developer offers present prices “inclusive of VAT,” which simplifies the calculation of the total investment cost.
Notary fees
Every real estate sales contract in Croatia requires notarization. Notary fees are relatively small compared to the total investment value, but they should be factored into the budget.
Notary and registration fees typically range from 0.01% to 0.05% of the property value. [2]
The cost depends on, among other things:
- the property value,
- the number of documents,
- the complexity of the transaction,
- the number of parties to the contract.
The notary certifies the parties’ signatures and the accuracy of the documents, which is necessary to register the new owner in the land and mortgage register.
Costs of a sworn translator
If the buyer does not speak Croatian, the presence of a sworn translator may be necessary when signing the documents. In practice, most foreign buyers use this solution for legal security.
The cost of translations and the presence of a sworn translator at the signing of documents typically ranges around €200–300. [2]
This primarily applies to:
- translation of the preliminary contract,
- final contract,
- official documents,
- communication with the notary and authorities.
Real estate agency commission
When buying real estate in Croatia, it’s very common to use the services of local real estate agencies. The standard commission at a real estate agency is usually around 3% of the property value plus VAT. [2]
In practice, the commission can be:
- paid exclusively by the seller,
- divided between the parties,
- collected from the buyer.
Therefore, it’s worth carefully agreeing on the terms of the agent’s remuneration before starting a relationship.
A good agency can significantly simplify the entire purchasing process, especially when it comes to:
- checking the legal status,
- negotiating the price,
- contacting authorities,
- organizing translations,
- assisting with the property’s rental after the purchase.
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Costs of entry in the land and mortgage register
After signing the contract, the new owner must be registered in the Croatian land and mortgage register. This is a crucial step in the entire transaction, as only this registration confirms full ownership.
The court and administrative fees associated with registration are not high, but they should be added to the total purchase price.
It is important to ensure that the property has:
- a clean land and mortgage register,
- a regulated ownership status,
- no debts,
- and the surface area is consistent with the documentation.
Lawyer fees
Although legal regulations do not require the mandatory presence of a lawyer when purchasing real estate, in practice this is a very sensible solution.
A lawyer can:
- check the documents,
- verify the land and mortgage register,
- confirm the legality of construction,
- prepare the contract,
- represent the buyer before authorities.
Legal costs depend on the value of the property and the scope of services, but typically range from several hundred to several thousand euros.
When purchasing real estate abroad, saving on legal assistance can prove very costly in the future.
Annual taxes after purchasing a property
Purchasing a property doesn’t end with financial responsibilities. Owners must also consider ongoing fees.
Croatia is implementing new regulations regarding property tax. The amount of the tax may depend on factors such as:
- location,
- area,
- property purpose,
- usage. [4]
Additionally, the owner is responsible for the following costs:
- utilities,
- community fees,
- waste collection,
- insurance,
- short-term rental tax.
Apartment rental and taxes
WMany people buy properties in Croatia with the intention of renting them out to tourists. This creates additional tax obligations.
Rental income must be reported according to Croatian regulations. Owners often use simplified tax settlement methods, but it may be necessary to:
- obtain appropriate permits,
- register a tourism business,
- pay local taxes and tourist fees.
It’s worth consulting with a local tax advisor in advance to avoid problems during an audit.
How to prepare a budget for a purchase?
When purchasing real estate in Croatia, it’s safe to assume additional costs of around 6-10% of the property value.
The most important expenses include:
- 3% tax or VAT,
- agency fees,
- notary fees,
- translator fees,
- lawyer fees,
- land and mortgage registration fees,
- administrative fees.
This will help avoid a situation where an attractively priced property turns out to be significantly more expensive after all the formalities are added.
Is it worth investing in real estate in Croatia?
Despite additional costs and taxes, Croatia remains one of the most attractive investment destinations in Europe. A stable tourism market, rising real estate prices, and the immense popularity of the Croatian coast mean that many investments can generate attractive returns.
The key to a safe purchase, however, is a thorough cost analysis and working with trusted specialists. A well-prepared transaction avoids legal issues while providing the opportunity to enjoy your own apartment on the Adriatic for many years.
Footnotes:
[1]: Podatki od nieruchomości w Chorwacji 2025: podatek od przeniesienia własności nieruchomości i nowe reformy – HIKEL HOMES
[2]: Koszty zakupu nieruchomości w Chorwacji | Adrionika.com
[3]: Podatek VAT Chorwacja 2025 | Eurofiscalis | Rozliczamy VAT HR
[4]: (Nowe) podatki od nieruchomości w Chorwacji – wszystko co musisz wiedzieć – SolHome
