The Real Cost of Buying Property in Croatia: Your Complete Guide
Planning to buy a property in Croatia? The total cost will be approximately 8-12% more than the property’s asking price. With Croatia’s stunning coastline and growing property market, understanding these additional costs is essential for proper budgeting and avoiding surprises at completion.
Residential real estate prices in Croatia are growing every quarter by an average of 2%, making it increasingly important to factor in all associated costs when planning your investment.
Property Transfer Tax vs VAT: The Key Difference
The biggest factor affecting your purchase costs is whether you’re buying new from a developer or second-hand from another owner.
New Properties: 25% VAT
Buyers of real estate in Croatia pay a 25% value-added tax for new buildings. This hefty tax applies to properties purchased directly from developers that have never been sold before.
Resale Properties: 3% Transfer Tax
The real estate transfer tax (PTN) rate in Croatia remains at 3% of the market value of the property or the purchase price, depending on which of the two amounts is higher. This is significantly lower than VAT on new properties.
Complete Breakdown of Croatian Property Purchase Costs
1. Property Transfer Tax or VAT (The Big One)
This is your largest additional cost:
- New properties: 25% VAT on purchase price
- Resale properties: 3 percent of the property’s market value
2. Legal Fees: 1-2% + VAT
Legal fees generally amount to 1% of the property value, plus VAT, though some lawyers charge up to 1.5 – 2 % of the purchase price. Your lawyer will:
- Examine essential documents such as the land registry extract, building permits, energy certificates, and other relevant paperwork
- Verify ownership, legality, draft the pre-contract and purchase agreement, and file a request for ownership change
- Navigate Croatia’s complex property laws
3. Brokerage Fees: 3-3.75%
For our comprehensive service we charge the usual rate in Croatia of 3%, but at least 3125€, plus 25% Croatian VAT (PDV) i.e. 3.75%. You can avoid this cost by buying directly from the seller.
4. Notary Fees: Variable
When buying a property, you can’t avoid notary public fees, whether you are using a housing loan or paying cash. All Croatian property transactions must be completed through a notary public.
5. Additional Administrative Costs: 1-3% + VAT
Registry fees and applications, transfer of utility costs, are priced on average an additional 1 -3% + VAT of the agreed purchase price.
New Property Tax System for 2025
Croatia introduced major changes to property taxation in 2025:
Annual Property Tax Rates
Property tax replaces the existing tax on holiday homes, which both individuals and legal entities are liable to pay. The tax is paid annually, ranging from 0.6 to 8 euros per square meter.
Regional Variations
The maximum possible property tax rate for 2025, set at eight euros per square metre, has been adopted by Umag, Vis, Sveti Filip i Jakov, Fažana, and Baška Voda. Bol follows with a rate of 7.5 euros, while Motovun has set it at seven euros.
Popular coastal destinations have the highest rates, reflecting their premium locations and tourist appeal.
Capital Gains Tax Rules
If you decide to sell your Croatian property:
Capital Gains for Private Persons
Transfer of shares/business quotas is subject to 12% capital gains tax if sold within two years from the date of the acquisition of shares; tax is paid on the difference between the selling price and the acquisition price.
Buying Restrictions for Foreign Buyers
EU Citizens
EU Citizens: Can buy residential and commercial property without restriction, except for agricultural and forest land.
Non-EU Citizens
Non-EU Citizens: May purchase under conditions of reciprocity or by establishing a Croatian company.
Company Setup Costs: If you’re a non-EU citizen buying through a Croatian company:
- Public notary fee: Around 500 EUR
- Founding capital: Around 2,800 EUR, which can be withdrawn after the company is registered
- Monthly bookkeeping fees: About 150 EUR
Smart Budgeting for Croatian Property
Here’s how the costs add up for different scenarios:
For a €200,000 new coastal apartment:
- VAT (25%): €50,000
- Legal fees (1.5% + VAT): €3,750
- Brokerage (3.75%): €7,500
- Administrative costs (2% + VAT): €5,000
- Total extra costs: €66,250 (33.1%)
For a €300,000 resale property (Dubrovnik area):
- Transfer tax (3%): €9,000
- Legal fees (1.5% + VAT): €5,625
- Brokerage (3.75%): €11,250
- Administrative costs (2% + VAT): €7,500
- Total extra costs: €33,375 (11.1%)
For a €150,000 resale apartment (Split):
- Transfer tax (3%): €4,500
- Legal fees (1% + VAT): €1,875
- Brokerage (3.75%): €5,625
- Administrative costs (1.5% + VAT): €2,813
- Total extra costs: €14,813 (9.9%)
Annual Ownership Costs to Consider
Property Tax Examples:
- 60m² coastal apartment in Dubrovnik: €240-€480 annually
- 100m² villa in Split: €60-€800 annually (depending on exact location)
- Rural property: €60-€190 per 100m² annually
Why Professional Help is Essential
Croatia’s property market has specific regulations, especially for foreign buyers. The significant difference between VAT on new properties (25%) versus transfer tax on resale properties (3%) makes professional advice crucial for choosing the right type of purchase.
In 2025, coastal apartments range from €2,500–€7,000 per sqm, with inland and rural regions even more cost-effective, but the additional costs can vary dramatically based on your purchase strategy.
Ready to invest in Croatian property? Understanding these costs upfront ensures you can budget properly and choose the most cost-effective route to your dream home on the Adriatic coast.
Access our portfolio of over £350M worth of pre-sourced, off-market investment properties, and we’ll show you how to generate £5k+ a month.
