Frequently asked questions and answers
Here are answers to the most frequent questions about taxes and the process of buying and selling real estates in the Republic of Croatia.Buying and selling real estate in Croatia
Are EU citizens allowed to buy real estate in the Republic of Croatia?
EU citizens are allowed to buy real estate in the Republic of Croatia which are located within the bounds of a building area. This means houses, apartments and building land (construction land).
Are citizens of other countries (outside the EU) allowed to buy real estate in the Republic of Croatia?
Citizens of other countries are allowed to buy real estate in the Republic of Croatia which are within the bounds of building area. This means houses, apartments and building land (construction land) only if there is a contract of reciprocity between the Republic of Croatia and the country in question.
In what way can foreign citizens gain property rights over farmland?
Foreign physical people can gain property rights over farmland only on the basis of inheritance.
How is the sales contract verified?
The sales contact is verified when a seller or an authorized person verifies his signature at the notary’s office. The notary does not verify the content of the contract!
Does the sales contract need to be done by a notary?
In some countries only a notary is authorized to make sales contracts. In Croatia a sales contract can be made by anyone, it can even be bought at a bookshop.
What is a tabular statement?
It is a statement by which the seller declares that he has received the whole amount of the agreed price from the buyer, as a result of which the buyer gains the right to transfer the property right into the land register.
Where can the title deed of a property checked?
A real estate title can be checked by looking into the land register, which is run by the local municipal court. In Istria the majority of real estates is registered in land registers, whereas some are still registered in the book of concluded contracts. A statement from the land register can be obtained via internet on the internet pages of the Ministry of Justice.
Are under-aged people allowed to sell real estates in Croatia?
Yes, but they need to have the consent of the Centre for Social Care before selling.
Are foreigners allowed to sell real estates?
Foreigners are allowed to sell real estates without any restrictions.
Sales Tax
How much is the sales tax (stamp duty)?
The sales tax is 3% of the market value of the real estate.
Who pays the sales tax?
The taxpayer is the buyer, unless the parties have agreed differently.
Does the sales tax (stamp duty) always have to be paid?
No, if the real estate price includes VAT, then there in no obligation to pay sales tax (stamp duty).
How much is the VAT in real estate and who pays for it?
VAT is 25%, and the taxpayer is the seller.
Does a physical person have to pay tax on the difference in the sales price when selling real estate in Croatia?
If more than two years have passed between buying and selling a real estate, then the seller doesn’t need to pay the tax on the difference in the sales prices (from the price the seller paid when buying the real estate). If the subject of buying and selling is land on which a house is being built, then the two-year deadline starts the moment the certificate of occupancy has been issued. A tax obligation also comes into effeect when selling three or more real estates of the same kind within a period of five years.