The Real Costs of Buying Property in Croatia: Taxes, Fees and Running Costs
The asking price is only part of what you pay when buying property in Croatia. Taxes, fees and annual running costs all add up, and the biggest one depends on whether you buy a resale home or a new build. Here is what to budget for.
One-off costs when you buy
| Cost | Typical amount | Who pays |
|---|---|---|
| Real estate transfer tax (resale homes) | 3% of the purchase price | Buyer |
| VAT (new builds from a developer) | 25%, normally included in the price | Included |
| Agency commission | Often around 3% plus VAT | Usually the buyer |
| Lawyer | Around 1% to 2%, or a fixed fee | Buyer |
| Notary and land registry | Usually a few hundred euros | Buyer |
Transfer tax or VAT: the difference that matters
Resale property: when you buy from a private owner, you pay a 3% real estate transfer tax, assessed by the tax office after the sale.
New build: when you buy a newly built home from a VAT-registered developer, the price includes 25% VAT and no transfer tax is due. The two do not apply together. Always check whether a quoted price includes VAT.
Agency fees
Agency commission is a significant extra on resale purchases. If you buy directly from the developer, there is usually no agency fee to pay.
A quick example
For a €500,000 resale property bought through an agent, transfer tax, agency commission and legal fees together could add roughly €35,000 to €45,000, or 7% to 9% of the price.
Annual property tax in Croatia
Since 2025, Croatia has a mandatory annual property tax that replaced the old holiday home tax. Each municipality sets the rate, between €0.60 and €8 per square metre of the property each year.
It applies to homes that are not someone’s main residence and are not let on a long-term lease. Most holiday homes therefore pay it. For a 150 m² villa, the bill ranges from under €100 to around €1,200 a year depending on the municipality.
You will also pay a communal fee (komunalna naknada), a local charge for roads, lighting and public services.
Running costs of a holiday home
Budget for the ongoing costs of ownership as well as the taxes:
- Utilities: electricity, water and internet, higher in summer if you run air conditioning and a pool.
- Insurance: building and contents cover.
- Maintenance: garden, pool, cleaning and general upkeep, especially if you are not there.
- Management: if you rent the property out, a management company typically takes a share of rental income.
Extra costs if you rent to tourists
Letting your property to holidaymakers brings its own costs:
- Rental licence and star rating (categorisation) from the local authorities.
- Flat-rate income tax per bed, set by the municipality.
- Tourist tax per guest night, plus a tourist board membership fee.
Our guide to holiday rental income in Croatia covers this in more detail.
Costs when you sell
If you sell a property within two years of buying it, the gain is generally subject to income tax. After two years, the sale is generally tax-free for private individuals. Check the current rules with a tax adviser before selling.
Frequently asked questions
How much is the property transfer tax in Croatia? 3% of the market value, paid by the buyer on resale properties.
Do you pay transfer tax on a new build in Croatia? No. New builds from a VAT-registered developer include 25% VAT instead, and transfer tax does not apply.
Is there an annual property tax in Croatia? Yes. Since 2025, municipalities charge €0.60 to €8 per square metre a year on homes that are not a main residence or let long-term.
What are the total buying costs in Croatia? For a resale property, usually around 7% to 9% of the price. For a new build bought directly from the developer, typically much less, mostly legal and notary fees.
Clear costs from the start
Croatian Hills homes are sold directly by the developer, so there is no agency layer between you and the project. Request details for a full breakdown of what is included in the price for Hilltop or Northill.
This article is general information, not legal or tax advice. Rates are set nationally and locally and can change. Always confirm current figures with a Croatian lawyer or tax adviser.
