What additional costs are incurred when buying property in Croatia?
What are the operating costs for a property in Croatia?
These are two questions that every customer from abroad probably asked right at the beginning of our collaboration and which is completely understandable.
COSTS WHEN BUYING PROPERTY IN CROATIA
Once your agent has found the right property for you, you should hire a lawyer so that the purchase can be completed. Brokerage agencies, like us, usually have a law firm with which they work and, in collaboration with them, offer complete support for the purchase from start to finish. We also employ a legal professional who coordinates and manages all steps in the purchase process.
The decision to purchase and the agreed purchase price are generally followed by the broker’s commission, legal fees and real estate acquisition tax.
The usual broker commission is 3.75% including VAT.
The legal fees and the other services in the package associated with the purchase conclusion, such as translator, notary, obtaining confirmations (OIB number from the tax office, certificate of building land from the building authority), land registry fees and applications, transfer of utility costs, are priced on average an additional 1 -3% + VAT of the agreed purchase price. It is important that you have a reliable partner who can take on the services listed and carry them out successfully for you.
After the main contract for the purchase of real estate has been concluded, the Croatian tax office issues the notice of real estate acquisition tax. This tax is 3% of the purchase price. However, the real estate acquisition tax can be waived if the seller is a company and pays VAT, which is included in the purchase price. This is beneficial for you.
ONGOING OPERATING COSTS FOR A PROPERTY IN CROATIA
After the formalities have been completed and you have become the owner of the property, only the operating costs follow.
A property owner in Croatia receives bills for the following additional costs:
- Electricity
- Water
- Garbage collection
- Facility management
- Municipal taxes (There are two taxes that, translated literally from Croatian into English, are called municipal tax and water maintenance fee)
- Television fee (holiday property owners do not have to pay this all year round)
These are the basic additional costs. Without consumption, we have a rough average of around €35 per month for an apartment of around 60-70 m2.
As the owner of a holiday property, you still pay a holiday home tax once a year. The amount of the holiday home tax is determined by the municipality depending on the square footage of the apartment.
For example, a customer with a 62 m2 apartment in Privlaka near Zadar pays €125 per year as holiday home tax.
The additional costs are within a good range and according to comparisons from our customers from other western Europe countries, they still find the operating costs to be significantly lower in Croatia than in their home country.
Furthermore, the owners of a holiday property still must pay a tourist tax for their stay in Croatia or the relevant municipality, but owners of a holiday property and their family members have maximum benefits. You can pay only a small annual flat rate. To do this, please contact the responsible tourist office.
Optional additional costs usually include internet, telephone, and insurance.
Our agents will be happy to answer any further questions you may have during the viewing or any further step in connection with buying a property in Croatia.
Chech the available properties on the following link: Emporia Real Estate Listings