Question 1

Who is a real estate broker?

Accepted Answer

A real estate broker is an authorised company, sole trader or craftsman who meets the requirements for performing real estate brokerage services.

Question 2

Who is a real estate brokerage agent?

Accepted Answer

A real estate brokerage agent is a natural person who is registered in the Directory of Real Estate Brokerage Agents.

Question 3

What is the real estate transfer tax rate?

Accepted Answer

If you have purchased, inherited or otherwise acquired real estate (a building or land) in a case where value added tax (VAT) is not paid on such acquisition, you are liable for real estate transfer tax. The tax rate is three percent of the market value of the property at the time of its acquisition.

Question 4

How much is the income tax on property rental or lease?

Accepted Answer

Income tax on property is paid on the amount of the rent or lease payment reduced by 30% for expenses, at a rate of 12%.

Question 5

What documentation must the buyer provide when purchasing real estate in Croatia?

Accepted Answer

When buying real estate in Croatia, the buyer must provide proof of citizenship of the Republic of Croatia, namely an ID card, passport or certificate of citizenship, in the original or as a photocopy certified by a notary public, and the decision on the Personal Identification Number (OIB). The same applies to foreign nationals, who must provide proof of citizenship from their home country and the OIB decision obtained in the Republic of Croatia.

Question 6

What is housing loan subsidisation?

Accepted Answer

Housing loan subsidisation is an aid measure of the Government of the Republic of Croatia aimed at helping Croatian citizens meet their housing needs through the repayment of part of their housing loan.

Question 7

What is a deposit (earnest money)?

Accepted Answer

A deposit is a sign of serious intent and of a genuine intention to purchase the property, and it customarily amounts to 10% of the purchase price. The deposit is regulated by the Civil Obligations Act: if one party hands over to the other a certain amount of money or other fungible items as a sign that the contract has been concluded (the deposit), the contract is deemed concluded when the deposit is given, unless otherwise agreed. Also, unless otherwise agreed, a buyer who has given a deposit may withdraw from the contract by leaving the deposit to the other party, and if the seller withdraws from the sale, the seller is obliged to return double the deposit.

Question 8

What is a real estate sale and purchase contract?

Accepted Answer

A real estate sale and purchase contract is a contract by which the seller undertakes to transfer ownership of the property to the buyer, and the buyer undertakes to pay the agreed purchase price for it. The buyer is obliged to pay the seller the full amount of the agreed purchase price, and the seller is obliged to hand over possession of the property to the buyer and to allow the transfer of ownership into the buyer's name.

Question 9

What is a tabular statement?

Accepted Answer

A statement by which the seller declares that it has received the full amount of the agreed purchase price from the buyer, and on that basis allows the land-registry transfer of ownership of the property that is the subject of the sale and purchase contract.

Question 10

Does the purchase price for real estate in Croatia have to be paid in the domestic currency?

Accepted Answer

Yes. The purchase price is paid in the domestic currency, which since 1 January 2023 has been the euro — on that date the Republic of Croatia adopted the euro in place of the kuna. This applies to both natural persons and companies. Payment in another currency is possible only exceptionally, in the cases permitted by the applicable regulations.

Choose your language

Frequently Asked Questions

Do you have questions about a property?