Croatia property tax for foreigners: on the way in, every year, on the rent, on the way out.

What tax do you pay when buying property in Croatia?

Real estate transfer tax of 3% of the property's market value, paid by the buyer, at that rate since 1 January 2019. A building supplied before first occupation, or within two years of it, carries 25% VAT instead. There is no general first-home exemption.

The transfer tax assessment starts when the notary reports the contract to the Tax Administration, within 30 days. All costs: Croatia property buying costs.

What is Croatia's annual property tax?

Since 1 January 2025, a property tax of €0.60 to €8.00 per m² of usable floor area a year, at a rate set by each city or municipality. It replaced the holiday home tax, whose maximum was €5.00 per m². It is payable by whoever owns the property, domestic or foreign, on 31 March of the tax year.

Payment is due within 15 days of receiving the assessment. Each municipality can change its rate yearly, so check the decision for your town rather than a national figure.

Which homes are exempt from Croatian property tax?

Among others: property used for permanent residence, and property let under a lease for permanent residence of at least 10 months. Registering an address alone does not prove permanent residence; actual use can be checked, for example through utility consumption. Property let to tourists is not exempt.

So a holiday apartment used by the owner part of the year, or let to tourists, pays the tax. A home let long term to a resident tenant does not.

How is long-term rental income taxed in Croatia?

At 12% on the rent less a flat 30% deduction for expenses. The landlord must report the lease to the Tax Administration within 8 days of it starting or changing, or the notary files it within 30 days if a notary certified the lease. From 2025, the tax goes to where the property is located.

Non-residents are taxed on Croatian-source income, including rent. Tax Administration guidance reportedly sets monthly payment for a non-resident's long-term rent, but that page was not read directly for this article.

How are holiday lets taxed in Croatia?

Tourist rental in a household is taxed as a flat annual amount (paušal) per bed or unit, set by each municipality within ranges by tourism category since the 2025 reform: €100 to €300 in category I, €70 to €200 in II, €30 to €150 in III, and €20 to €100 in IV and 0.

The regime is capped at 10 rooms or 20 beds and €60,000 of receipts a year. The Hospitality Industry Act limits household hospitality to citizens of Croatia, other EEA states and Switzerland; confirm with a Croatian lawyer before a non-EU buyer plans a holiday let. Whether a non-resident EU owner can use the flat regime was not confirmed.

Is there capital gains tax on Croatian property?

Only on a quick sale. Tax on the gain is due if the property is sold within two years of acquisition, or if more than three properties of the same type are sold within five years. The rate is 24%. A sale is exempt if the property housed the seller or dependent family members.

Step by step: selling property in Croatia as a foreigner.

Header photo: Deizenov, CC BY 4.0, via Wikimedia Commons. All credits: image credits.