Real estate transaction costs and taxes in Croatia

Cost

Issuance of the registry excerpts / copies of cadastral plans, maps and zoning information: administrative fee EUR 3 + charge EUR 30 / hour of work of competent authorities (if applicable) + material costs.

VAT

Nil

Cost

Variable

VAT

Nil

Cost

• Land registry excerpt (identifying the owner of the property): EUR 2.60 per page.
• Copies of documents filed with the Land registry: EUR 2.60–4.00 per page.

VAT

Nil

Cost

No charge if made via Internet (only unofficial data); Registry files insight: approx. EUR 14; Excerpt: approx. 70c per page.

VAT

Nil

Cost

Negotiable

VAT

25%

Cost

Negotiable

VAT

25%

Cost

The transfer of construction land and transfer of buildings or their parts before the first occupation or use, within two years from the date of its first occupation or use to the date of the next supply (including reconstructed buildings), will be subject to VAT. The transfer of used real estate and relating land after two years from the day of first usage and the transfer of agricultural and other land will be subject to RETT (except if the seller–VAT payer opts for VAT, when the VAT liability is with the acquirer and then reverse charge VAT applies). RETT will be payable also when seller is not a VAT payer, irrespective of the type of real estate.

VAT

25%

Cost

RETT at 4% of market value of the real estate at the time of its acquisition (land plot value).

Land registry registration fees 

Cost

Approx. EUR 35 (or approx. EUR 15 if the request is filed via notary public). 

Generally, no RETT should apply on the transfer of shares in a real estate owning company. However, if based on the circumstances of the particular case, the Tax Authorities determine that the substance of the transaction is transfer of real estate, RETT may become due.

Private persons: no taxation if the real estate is used for living or if ownership has been used for more than three years; however, if more than three transactions within a five-year period are made, the personal income tax applies (rate 24%) but only on the difference between the prices (selling price - acquisition price).
Companies: No separate capital gains tax, but proceeds treated as income, subject to corporate income tax, at 12% or 18% (depending on the amount of overall income).

Commercial entities: no separate capital gains tax applies to shares/business quotas transfer. However, proceeds shall be treated as income and shall be subject to corporate profit tax of at 12% or 18% (depending on the amount of overall income). Capital gains are calculated as the difference between book value and sales price; adjustments to the book value are in some cases tax-free.
Private persons: transfer of shares / business quotas is subject to 12% capital gains tax if sold within two years from the date of the acquisition of shares; tax is paid on the difference between selling price and acquisition price.