Croatia is a popular country for investing in real estate on the Adriatic coast. However, before buying an apartment or a house, you should consider not only the cost of the property itself, but also purchase taxes, registration fees, and annual maintenance.
Real estate purchase tax
Rate: 3% of the appraised value determined by the local tax authority.
Who pays: the buyer.
When it is paid: within 30 days after receiving the tax notice.
If the purchase is made from a construction company (new construction with VAT), the tax is not paid, and instead, the price includes 25% VAT.
Example: Buying a second-hand apartment for €200,000 → tax = €6,000.
Registration costs
Notary: €200-800 depending on the complexity of the transaction.
Lawyer (optional): 0.5-1.5 % of the property value.
Registration in the land cadastre (Ured za katastar): €40-60.
Translation of documents (if non-resident): €50-150.
Annual real estate tax (from 2025)
Starting from January 1, 2025, a new tax on residential real estate is in force in Croatia, replacing the “resort tax”.
Who has to pay?
Owners of second properties, vacant housing, or properties that are rented out for short-term (less than 10 months).
Does not apply to housing that:
is the primary place of residence;
is rented out for a long-term lease (10+ months per year);
is used for agricultural purposes, or is recognized as unfit for human habitation.
The rate is determined by the municipality:
from €0.60 to €8/m² per year.
In the absence of a decision, the minimum rate of €0.60/m² is automatically applied.
Example: 70 m² apartment in Split → €2/m² → €140/year
Utility costs
Utility fee (kommunalna naknada):
~ €0.3-0.6/m²/month;
Depends on the city, district, type of facility.
Garbage collection fee:
€10-25/month.
Water + sewerage:
€1,5-2,5/м³.
Electricity:
The average bill for an apartment is €40-60/month (in the off-season).
Internet, TV:
€25-35/month.
Tax on rental income
If the property is rented out:
Fixed tax + tourist tax (~€300-500/year).
Additionally: annual registration of the property as a tourist facility (categorization).
It may be necessary to register as an individual entrepreneur (mandatory for incomes above €40,000/year).
Capital gains tax (on sale)
If you sell the property less than 2 years after purchase → 10% tax on the profit.
After 2 years – tax exemption (provided that it is not a commercial activity).
Real estate in Croatia remains attractive to investors and buyers from the EU, Ukraine and other countries. But since 2025, maintenance has become more expensive due to a new annual tax. When buying, it is worth considering both the initial costs (up to 4-5% in addition to the price) and the annual costs (from €500+ depending on the area and use).
Source: http://relocation.com.ua/podatki-na-neruhomist-u-horvatiyi-u-2025-rotsi-analiz-vid-relocation/
