For expert assistance in navigating the Croatian real estate market and managing these additional costs, Rimac Real Estate is here to help. Our team specializes in helping international buyers acquire residential, commercial, and hotel development properties across Croatia, ensuring you have a seamless and secure transaction.
When purchasing real estate in Croatia, it’s important to note that the final price extends beyond the property’s listed price. Several additional expenses can arise during the process, typically amounting to 5-8% of the property’s value, depending on various factors. Whether you’re buying residential property, commercial real estate, or hotel development projects, being aware of these costs can help you plan your budget more effectively.
Property Transfer Tax in Croatia
In most cases, buyers of Croatian real estate are required to pay a property transfer tax unless they are purchasing a newly constructed property. This tax stands at 3%, but in some cases, it can be 0% if the seller is subject to VAT. The tax is payable within 15 days of receiving the tax authority’s notice. For those purchasing a VAT-subjected property, the 25% VAT replaces the property transfer tax. Buyers using the property for commercial purposes, such as renting it for tourism, may be eligible for a VAT refund.
Real Estate Agent Fees
Foreign buyers often rely on real estate agents due to their unfamiliarity with the local market. The typical real estate agency commission in Croatia is 3% of the purchase price plus VAT. This fee is only payable if the transaction is completed and is based on an intermediary agreement signed at the time of viewing properties.
Legal Fees
Hiring a lawyer is a common practice when purchasing real estate in Croatia to ensure all documentation is thoroughly reviewed. Legal fees generally amount to 1% of the property value, plus VAT. The lawyer will examine essential documents such as the land registry extract, building permits, energy certificates, and other relevant paperwork. In our case, Rimac Real Estate has an in-house lawyer, saving you the legal costs typically associated with hiring a private attorney.
Notary Public and Court Fees
Notary fees in Croatia are relatively low compared to other European countries, generally amounting to around 200 EUR for verifying signatures and registering ownership rights. Should the process require depositing funds or documents with a notary, these fees will depend on the complexity and value of the transaction. Buyers using bank loans for the purchase will face additional costs for real estate appraisals, loan approval, and contract notarization.
Additional Costs for Foreign Buyers
Foreign buyers who do not already possess a Croatian personal identification number (OIB) may need to pay to obtain one unless they handle this process themselves. Additionally, if you require contracts and documents to be translated into your native language, you should budget for translation services, which usually cost up to 300 EUR.
Example of Additional Costs in Croatian Real Estate Transactions
To give you a clearer idea of the financial layout, here are two examples:
Example 1: Purchasing a House (from an individual)
- Property Price: 940,000 EUR
- Real Estate Sales Tax (3%): 28,200 EUR
- Agency Fee (3% + VAT): 35,250 EUR
- Legal Fees (~1% + VAT): 11,750 EUR
- Notary and Court Fees: 200 EUR
- Total Additional Costs: 75,400 EUR
- Total Investment: 1,015,400 EUR
Example 2: Purchasing an Apartment (from a company)
- Property Price (including VAT): 620,000 EUR
- Agency Fee (3% + VAT): 23,250 EUR
- Legal Fees (~1% + VAT): 7,750 EUR
- Notary and Court Fees: 200 EUR
- Total Additional Costs: 31,200 EUR
- Total Investment: 651,200 EUR
These examples highlight how the additional costs can differ based on the seller and the complexity of the transaction. By understanding these extra costs in advance, you can make informed decisions and ensure a smooth property acquisition process in Croatia.
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