Real Estate Taxes in Croatia
Tax Rate on Rental Income |
|||
| 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 |
| Roundtrip Transaction Cost | 6.50-10.50% | Buyer & Seller |
| Source: Global Property Guide, KPMG | ||
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