Taxes in Croatia

When purchasing a Croatian property, the buyer pays a 3% transfer tax. When buying new property, only 30% of the value is taxed, in addition to 25% VAT. A cadastral registration application fee of about €7 (50 HRK) is to be paid when filing such a request. The property title registration itself costs another €26 (50 HRK).

There is no real estate tax in Croatia but there is annual tax on holiday property for second homes. It ranges from €0.66 to €1.98 per square metre annually depending on the municipal district.

Capital gains tax of 25% is charged upon sale during the first three years after purchase. Ownership exceeding three years is exempt.

Inheritance and gift tax is 4 %.

Income tax is 12–36%. Corporate tax is 12–18 %.

There is a surtax to be paid on tourist rentals. Its rate depends on the property location, ranging from 10% to 18% (the highest being levied in Zagreb).

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.