Taxes and Fees When Buying Real Estate in Croatia – Everything You Need to Know

Blog updated on April 10. 2026.

In order to properly plan our budget when buying real estate in Croatia, we need to be familiar with every type of tax and fee. Key costs include real estate transfer tax, VAT on new-build properties, notary and legal fees, and ownership registration fees.

In certain cases, capital gains tax is payable if the same property is resold within two years.

To ensure the entire process goes as smoothly as possible with minimal complications and surprises, it is recommended to engage a reputable real estate agency.

What is real estate transfer tax and who is required to pay it?

Real estate transfer tax is an obligatory tax that the buyer pays when purchasing a property or that is paid when transferring ownership of real estate (land, house, or apartment). It is calculated based on the purchase price or the estimated market value of the property.

Real estate transfer tax is not payable in cases of property division (for example, divorce), inheritance, or gifts between close relatives.

What is the real estate transfer tax rate in 2025 and 2026?

The real estate transfer tax (PTN) in 2025 and 2026 in Croatia amounts to 3% of the property value. It is calculated on the market value rather than the price stated in the purchase agreement.

If the estimated value of the property is €1,000,000, the PTN will amount to €30,000.

The Tax Administration has the right to assess the market value of the property, and it may happen that it is higher than the contractual price. In that case, the tax is calculated on the higher, assessed amount.

What is VAT and when does it apply to a property purchase?

Value added tax on a property purchase applies in certain situations. When a buyer purchases a property from a developer who is registered for VAT, the VAT is included in the price and the buyer does not pay it separately.

For example, if the price of a new-build property from a developer is €300,000, the VAT of €75,000 is already included in that price. In this case, the buyer does not pay real estate transfer tax, as the two taxes are mutually exclusive.

If the buyer purchases a property from a private individual who is not registered for VAT, VAT is not charged but the buyer pays real estate transfer tax of 3% of the market value of the property.

Foreign buyers can purchase property in Croatia under certain conditions. In terms of taxation, the same rules largely apply to foreigners as to domestic buyers. However, foreign buyers should pay attention to administrative procedures such as obtaining the necessary documentation, thorough ownership verification, land registry status of the property, and possible approvals. For all these reasons, engaging a real estate agency is recommended.

Additional Costs When Buying Real Estate

In addition to taxes, there are other administrative, legal, and financial costs associated with the purchasing process. These include notary and legal fees, land registry registration fees, and banking and financing costs.

Notary and Legal Fees

Notary and legal fees relate to the actions required for a legally valid purchase and sale. They include authentication of the purchase agreement, solemnisation of documents, and issuance of a tabular statement required for ownership registration. The amount of these costs depends on the situation and the value of the property, ranging from several hundred to several thousand euros.

Land Registry and Cadastre Registration Fees

Land registry and cadastre registration fees are a mandatory step in the purchase process. In order for the buyer to become the formal legal owner of the property, they must be registered as the owner in the land registry and sometimes reconcile those records in the cadastre. It is also recommended to verify that the property is free of legal encumbrances before the actual registration. These costs include court fees and administrative charges. They are generally individually lower compared to other costs.

Banking and Financing Costs

Banking and financing costs relate to property purchases through a loan. In that case, one should account for loan processing costs, property valuation, and solemnisation.

When planning a property purchase, it is important to take into account all banking and financial costs, as they can significantly impact the overall costs and the buyer’s budget. Thorough research and comparison of offers from different banks is recommended to select the most favourable option.

Conclusion

Buying real estate in Croatia involves more than just the purchase price, which is why it is important to understand all taxes and additional costs in advance. The key tax for most buyers is the 3% real estate transfer tax, while in the case of buying a new-build property from a developer, VAT applies and is already included in the price. In addition to taxes, additional costs such as notary and legal fees, ownership registration, and potential banking costs for loan financing also play a significant role.

Timely information and quality budget planning can prevent unpleasant surprises and enable a safer purchasing process. Particularly for foreign buyers or more complex transactions, it is recommended to engage professionals, lawyers, or a real estate agency to ensure legal certainty and the proper execution of the entire procedure.