Transfer Tax (Porez na promet nekretnina) in Croatia is a flat rate of 3.0% of the purchase price. Flat 3% transfer tax on the market value of the property. Paid by the buyer within 30 days of signing. No progressive brackets — the same rate applies regardless of property value. No foreign buyer surcharges — all buyers pay the same rate. New-build properties from VAT-registered developers pay 25% PDV (VAT) instead and are exempt from transfer tax.

When purchasing property in Croatia, typical closing costs include: Lawyer Fees (Odvjetnik), Notary Fees (Javni biljeznik), Land Registry Fee (Gruntovnica), Property Valuation (Procjena). These are paid by the buyer at or before completion, in addition to the purchase price and Transfer Tax (Porez na promet nekretnina).

Ongoing costs for property owners in Croatia typically include: Annual Property Tax (Porez na nekretnine), Communal Fees (Komunalna naknada), Property Insurance, Maintenance & Repairs. These are annual costs that should be factored into your rental yield and cash flow calculations.

Capital Gains Tax (Porez na kapitalnu dobit) applies when you sell a property for more than you paid. Capital gains from property sales within 2 years of purchase are taxed at 24% (plus municipal surtax of 0-18% on the tax amount). After 2 years of ownership, the gain is fully exempt. Primary residence is exempt regardless of holding period. Deductible costs include the original purchase price, documented improvement costs, and transaction fees. Companies pay 10% CIT (revenue under EUR 1M) or 18% CIT, with no holding period exemption. Your primary residence is exempt from capital gains tax.