Updated: 16/01/2026
Buying an apartment, house, or land is one of the biggest financial investments in life. In addition to the price of the property itself, the most significant additional cost you must account for is the real estate transfer tax. In this guide, we provide all key information: from who is liable for payment to exemptions that may save you money.
Who pays the real estate transfer tax?
Under Croatian legislation, the rule is very clear: the taxpayer is the acquirer of the property. This means that the obligation to pay the tax of 3% lies with the buyer, not the seller.
Regardless of whether you are acquiring an apartment, house, agricultural land, or a garage, as the new owner you are required to pay this cost to the Tax Administration.
Specific liability cases:
- In sale and purchase transactions: The tax is paid by the buyer.
- In cases of gifting: The tax is paid by the recipient of the gift, unless they belong to exempt categories (immediate family).
- In exchange transactions: In the case of exchange (e.g. apartment for apartment), each party in the exchange pays 3% tax on the value of the property they acquire.
- In inheritance: The tax is paid by the heir (unless they are a first-line heir).
- Note: Although the buyer and seller may privately agree that the seller will bear the tax cost, the Tax Administration will always issue the decision to the buyer. If the tax remains unpaid, the state will claim it from you as the new owner.
What is the tax rate and when is VAT applied?
The real estate transfer tax rate is 3% of the market value of the property at the time the obligation arises. However, it is important to know that this tax applies only if VAT is not charged on the property.
| Seller |
Property type |
Type of tax |
Rate |
| Private individual |
Used property or land |
Real estate transfer tax |
3% |
| Company (VAT system) |
New construction (first occupancy) |
VAT (included in the price) |
25% |
| Company/Private individual |
Old agricultural land |
Real estate transfer tax |
3% |
Submission and payment procedure (Digital process)
Thanks to digitalisation and the e-Real Estate system, the process is now largely automated:
- Role of the notary public: When notarising the purchase contract, the notary sends the documentation to the Tax Administration ex officio. You no longer need to submit documents in person.
- Tax assessment: The Tax Administration issues a decision on the tax amount. It is delivered by mail or through the e-Citizens system.
- Payment deadline: The tax must be paid within 15 days of receiving the decision. After that, default interest begins to accrue.
Who is exempt from paying real estate transfer tax?
Although the general exemption for a “first property” has been abolished, the law still provides situations in which the tax is not paid:
- Immediate family: Gifts or inheritance between spouses, descendants (children, grandchildren) and ascendants (parents, grandparents) in a direct line.
- Divorce: Division of property during divorce proceedings.
- Preservation of marital union: Transfer of ownership between spouses for the purpose of regulating property relations.
- Corporate restructuring: Mergers or acquisitions of companies that own real estate.
Frequently Asked Questions (FAQ)
1. What if the price in the contract is lower than the market value?
The Tax Administration has the right not to accept the price stated in the contract if it determines it is unrealistically low. In such cases, the tax amount will be calculated based on the Administration’s own property market valuation tables for the given area.
2. Is tax paid on the purchase of a garage or parking space?
Yes, if a garage is purchased as a separate unit from a private individual, it is subject to a 3% tax. If it is part of a new build purchased from
