Real Estate Sales Tax in Croatia in 2025

Real Estate Sales Tax in Croatia in 2025

Important Note: The text below is for informational purposes only. The real estate agency Terra Dalmatica d.o.o. does not assume responsibility for legal or tax consequences of actions taken by readers based on this information. Since laws and regulations frequently change, we recommend consulting a qualified legal advisor or tax expert before making decisions regarding the purchase, sale, or any other legal procedure involving real estate.


Buying or selling real estate in Croatia involves paying real estate transfer tax. Understanding your tax obligations is crucial to avoiding unexpected expenses. Are there any changes on the horizon for 2025?

Purchasing real estate is a significant investment; many people save for years or take out loans to acquire their desired apartment, house, or building land. Sometimes it is necessary to act quickly when buying property as prices can change. Besides the amount needed to purchase the property, buyers should also consider other costs that arise before the property of their dreams becomes their own. These include taxes and often the real estate agency's commission fee.

The real estate transfer tax in Croatia represents an essential obligation for all participants in the real estate market. Whether you are buying or selling a property, understanding tax obligations can help you avoid misunderstandings and unexpected costs. This article will provide a detailed explanation of the real estate transfer tax and highlight any changes coming in 2025. We will discuss how the tax is calculated and whether there are any exemptions from payment.

Legal Foundations and Obligations for Paying Real Estate Transfer Tax

The real estate transfer tax in Croatia is regulated by the Real Estate Transfer Tax Act, which outlines the procedures for taxing the transfer of ownership or other real rights to real estate. The tax applies during purchase, sale, donation, or inheritance of property.

Who is Obliged to Pay Real Estate Tax?

According to the Real Estate Transfer Tax Act, any acquisition of property ownership in the Republic of Croatia is considered a real estate transaction and is subject to real estate transfer tax. Article 4, paragraphs 1 and 2, of the Act states that acquisition includes purchase, exchange, inheritance, donation, contribution and withdrawal of property from a company, acquisition after the expiration of a legal transaction, acquisition in liquidation or bankruptcy proceedings, acquisition based on court or other administrative decisions, and other forms of acquiring property from others.

The Tax Administration will require the buyer to pay the tax, not the seller. However, if the purchase agreement explicitly states that the seller will bear the tax obligation, then the seller guarantees tax payment.

The tax obligation arises at the moment of the property transfer, i.e., when the purchase or donation agreement is signed. In some cases, the tax obligation may also arise during the transfer of land rights, such as when rights are transferred for compensation or as part of property settlements.

Property can also be acquired through inheritance. In such cases, the tax obligation lies with the person inheriting the property. If the heir decides to renounce the inheritance or transfer it to another person, they are not responsible for the tax—the person receiving the inheritance becomes the tax payer. If property is acquired under a grant agreement, the tax payer is the person who acquired the property without compensation.

Tax Rates and Deadlines for Reporting and Payment

For 2025, the real estate transfer tax rates in Croatia remain unchanged from previous years. Specifically, a 3% tax rate will be applied to the tax base. The tax is calculated based on the property's value or, in some cases, the estimated market value.

Regarding tax calculation, this is based on the price specified by the buyer or seller in the purchase agreement or the estimated market value. If the price stated in the agreement does not align with market value, the Tax Administration may assess the market value and determine the tax accordingly.

The tax must be reported to the Tax Administration within 30 days of acquiring the property. It must be paid within 15 days of receiving the Tax Administration’s decision.

Exemptions and Reliefs

The Real Estate Transfer Tax Act specifies three types of exemptions from real estate transfer tax: general exemptions, exemptions for properties contributed to a company's capital, and exemptions for inheritance, donation, and other forms of gratuitous acquisition.

Inheriting Property

In Croatia, members of the first hereditary line, including spouses, descendants, ancestors, adoptees, and adoptive parents, are fully exempt from inheritance tax. For all other heirs, a flat tax rate of 4% applies, regardless of the size of the inheritance. The tax is calculated on inherited cash, claims, and other assets not covered by statutory exemptions. This system, more lenient than in many other countries, makes inheritance in Croatia more favorable and straightforward for close relatives.

Donating Property

When it comes to donating property, the same rules apply. Family members are exempt from payment as long as they meet the conditions prescribed by the Tax Administration. The same rules apply to the aforementioned inheritance of property.

Specific Situations Exempt from Real Estate Transfer Tax

There are also other specific situations in which individuals are exempt from paying real estate transfer tax.

Legal and natural persons who receive property as a gift from the Republic of Croatia or local and regional governments, for example, as compensation or for reasons related to the Homeland War, are not subject to this tax obligation.

Additionally, former spouses resolving their property relations after divorce, such as through the division of joint property, are exempt from paying real estate transfer tax, further simplifying these legal proceedings.

Citizens are exempt from real estate transfer tax in the following situations:

  • if the property is acquired in the process of restitution or land consolidation,
  • if they are displaced persons or refugees who acquired property by exchanging their property abroad,
  • if they are protected tenants purchasing the apartment they live in under a tenancy agreement,
  • if they purchase property (building or land) where they held tenancy rights with the consent of the tenancy rights holder,
  • if the acquisition pertains to the conversion of social property: acquiring property under the regulations on the transformation of social property,
  • if the acquisition of property is carried out through life annuity or maintenance agreements by spouses, descendants, ancestors, adoptees, or adoptive parents,
  • if the acquisition involves the dissolution of co-ownership, specifically when acquiring individual parts of the property through the dissolution of co-ownership or division of joint ownership, regardless of the proportions before and after the division.

Application Procedure and Documentation

To properly fulfill the tax obligation, here are the steps a property acquirer must follow and the necessary documentation.

Gathering Documentation: To report the tax, all relevant documents must be collected, depending on the method of property acquisition. These may include the purchase, donation, or inheritance agreement, the final inheritance decision, an ID card, and proof of property ownership.

Submitting the Application: The tax application must be submitted to the competent Tax Administration office based on the residence or location of the property.

Paying the Tax: Once the application is submitted, the tax must be paid within 15 days of receiving the Tax Administration’s decision.

Before January 1, 2017, first-time property buyers were exempt from real estate transfer tax, which was a significant benefit for many citizens. However, with the introduction of European guidelines, this provision was abolished to ensure equal treatment for all buyers. Instead, the government introduced a housing loan subsidy model, which helps citizens cover part of their monthly installments and encourages housing solutions.

Given potential changes, anyone involved in property transactions should carefully monitor updates and regulations to avoid misunderstandings and additional costs. Consulting professionals, such as legal or tax advisors, is strongly recommended to properly meet all obligations toward the Tax Administration.

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