Taxes and costs: what buying in Croatia really costs
Add approximately to the purchase price an additional 5-8% on taxes and services, and from 2025 also a new annual property tax. Here is the complete breakdown, no surprises.
One-off costs upon purchase
| Item | How much | Note |
|---|---|---|
| Real estate transfer tax | 3 % from the purchase price | borne by the buyer; the tax authority may adjust the base to market value if the contract price is suspiciously low. |
| PDV (VAT) on new-build property | 25% included in the price | only when sold by a developer; then the 3% transfer tax is not payable |
| Lawyer | 1-1.5% | verification + contracts + deposit; the only one defending solely your interests |
| Real estate agency commission | 3-4% (often 3% + VAT) | In Croatia, both buyers and sellers commonly pay their own real estate transfer tax. |
| Notary (signature verification) | tens to hundreds of € | depending on the number of tasks |
| Court fee for deposit | low tens of € | proposal for registration of ownership |
| Translations / interpreter | 100-400 € | verified translation of contracts if not signing bilingual versions |
Transfer tax: how the process works in practice
Once the purchase agreement has been verified, the notary will send it to the tax authority themselves. You do not need to report anything. The tax authority will issue an assessment and you have 15 days from delivery for payment. For larger amounts, instalments can be requested (up to 24 monthly instalments, currently with interest of ~5.75% p.a.).
New property tax from 1 January 2025
Croatia has introduced from 2025 property tax (tax on real estate), which mainly affects holiday and seasonal properties: 0.60–8.00 € per m² annually. The specific rate is set by the municipality based on the attractiveness of the location, coastal municipalities are usually at the upper limit. The property where you have your permanent residence, or which you rent out long-term (for over ~10 months a year), is exempt from this tax.
Ongoing ownership costs
- Municipal fee (komunalna naknada): Monthly payment to the municipality based on m² and zone: tens of € per month.
- Energy and water: comparable to the Czech Republic, electricity slightly cheaper, water more expensive.
- Property insurance: from ~150 €/year.
- Remote management/cleaning: €30–100/month depending on scope (important if you are renting out – chapter Investment and rental).
- Income tax on rental income: flat-rate system per bed for holiday rentals (see chapter Investment).
Tax relations with the Czech Republic
The Czech Republic and Croatia have a double taxation treaty. Income from real estate (rental, sale) is primarily taxed in Croatia; in the Czech tax return, the exemption method with progression reservation applies. For sales before a certain holding period, Croatia handles capital gains tax, consult a tax advisor for details; this is an area where an hour of consultation pays off.
Would you like to know how much purchasing your specific apartment would cost? Calculate it in the calculator or write to us via the form. We will go through it with you item by item.