Property Transfer Tax in Croatia

When purchasing real estate in Croatia, it is important to know about the one-time tax that applies at the transaction. This tax is called the property transfer tax (Porez na promet nekretnina).

When is the property transfer tax paid?

The property transfer tax is paid with every real estate purchase in Croatia, whether you are a resident of the country or a foreign buyer. After signing the purchase agreement, the buyer is required to submit a tax declaration to the local tax office within 30 days of the contract signing. This tax is one-time and applies to all types of properties, including apartments, houses, land, or commercial spaces.

Tax rate

The current property transfer tax rate in Croatia is 3% of the market value of the property. The tax is not calculated based on the purchase price listed in the contract, but on the value determined by the tax office, which is based on an expert appraisal or market prices in the area.

Who pays the tax?

In most cases, the buyer is responsible for paying the tax, although it can be agreed otherwise in the contract between the buyer and seller. The seller is not obliged to pay the tax unless the property is being sold as part of their business activity.

Exemptions from the tax

In some cases, the buyer may be exempt from paying the property transfer tax, such as:

• When buying a new building from a developer that is a VAT payer, instead of the property transfer tax, VAT (Value Added Tax) is paid, which is usually 25% of the price. In this case, no additional property transfer tax is due.
• First-time homebuyers purchasing a home for personal use may be eligible for exemptions, especially Croatian citizens who meet certain criteria.

Important steps after the purchase

After paying the property transfer tax, it is necessary to register the property with the local land registry office. Registration is important to ensure the legal protection of your ownership rights.