Guide to Property Taxes in Croatia
Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 12% | 12% | 12% |
Nonresident individuals are taxed on their Croatian-sourced income. Married couples are taxed separately.
Rental Income Tax
Rental income from property is taxed at 12%, with allowed deductions fixed at 30% of the gross rent.
Capital Gains Tax
Capital gains are subject to a flat tax rate of 12%, 24 or 36%.
- Income from interest, dividends, and capital gains: 12%.
- Income from grant of own shares or stock option based on the purchase of own stock at a favorable price: 24%.
- Income from withdrawals of assets and use of services: 36%.
Value Added Tax (VAT)
VAT is waived on the leasing of housing premises.
Corporate Tax
Rental Income Tax
Income and capital gains of companies are subject to a flat corporate tax rate of 18%. Rental income-generating expenses are deductible when calculating taxable income.
Buying and Selling Taxes and Costs
| Cost Component | Percentage of Property Value | Who Pays? |
| Property Transfer Tax | 3.00% | Buyer |
| Agent Fee (Buyer) | 0.00% - 3.00% | Buyer |
| Agent Fee (Seller) | 1.00% - 3.00% | Seller |
| Legal Fees | 0.50% - 1.50% | Buyer |
| Notary Fees | 100 EUR | Buyer |
| Costs Paid By Buyer | 3.50% - 7.50% | |
| Costs Paid By Seller | 1.00% - 3.00% | |
| Roundtrip Transaction Cost | 4.50% - 10.50% | |
| Source: Global Property Guide, KPMG | ||
Annual Property Tax
Beginning January 1, 2025, Croatia implemented a new annual property tax that replaced the previous "holiday home tax." The rate is determined by the local municipality or city where the property is located. The rate varies from 0.60€ to 8.00€ per square meter per year.
The tax does not apply to properties used as the owner’s primary residence.
