The mentioned costs represent approximately 9% of the transaction amount.
The listed sales prices include VAT (rate in Croatia: 25%). When the seller is a company and of course when the seller is a natural person.
In the case when the seller is a company registered in the VAT system and if the real estate has not been used and inhabited for a period of 2 years, no real estate sales tax in the amount of 3% is paid.
Fees not included with purchase (except as previously stated):
- Real estate transfer tax: 3%: this is a tax to be paid to the Croatian state for the transfer of ownership. As everywhere, the tax service can dispute it if the reported amount is not in accordance with the average of transactions in the same sector. This happens very rarely.
- Lawyer’s fees: 1.5% + VAT: Lawyer’s fees vary from 1.5 to 2% of the transaction amount. Minimum rates are determined by the Croatian Chamber of Lawyers.
- Notary fees, translation and fees for registration of ownership rights : fixed amount of 300 EUR
- Intermediary fee: Pursuant to the Real Estate Brokerage Act and the General Terms and Conditions, the brokerage fee is charged on the basis of a written Brokerage Agreement concluded between the agency and the buyer as the principal. The General Terms and Conditions and the agency’s valid Fee schedule form an integral part of Brokerage Agreement. In accordance with the agency’s Fee schedule, the standard brokerage fee to be contractually borne by the buyer amounts to 3% (+ 25% VAT) of the achieved real estate purchase price.
Conclusion: additional costs represent approximately 9% of the transaction amount.
