LEGAL COSTS & FEES FOR AQUARING THE PROPERTY IN CROATIA

Once you have decided to go ahead with the property purchase you should be aware of the following legal taxes and costs:

1. PROPERTY PURCHASE TAX

   In Croatia, property purchase tax is paid by the buyer and imposed as:

   • VAT (Value Added Tax) at 23 % – for all properties built after January the 1st 1998
   • Sales Tax at 5 % – for all properties built before 1998 and land
   • Sales Tax of 5% is applied to the land and VAT at 23% to the value of the built up area of the property.
2. AGENT’S FEE

   By the Croatian Law, the real estate agency fee for assisting in the property sale is set to 6-8% of the purchase price and is shared between the seller and the buyer.

   DC Grupa will charge the buyer no more than 3% (+VAT) of the purchase price with all fees stipulated in the brokerage agreement signed between the agency and the client at the time of property viewing.

   * - The fees are negotiable for higher amounts. Please contact us for details.

   Services DC Grupa will provide for you in the property purchase process are:

   • Property viewing
   • Legal documentation and Title deeds check up
   • Exposure of all relevant details regarding the property that is of your interest
   • Full legal support during the sale/purchase transaction
   • Full assistance in bank account opening, payment transaction, etc.
   • Incorporation of a LTD Company

    

3. LTD COMPANY INCORPORATION

   DC Grupa will provide service of incorporating a LTD Company only for our contractual clients with intention to purchase property in Croatia.

   The costs of setting up a Limited Liability Company in Croatia are approx € 3 800,00 and that is:

   • approx € 1 000,00
   • approx € 2 800,00 (your company’s starting capital that you may retrieve after  the incorporation

   * - Please note that the amount of incorporating the company may vary according to the exchange rate of the HRK compare to EUR

   The act of the Company Incorporation includes:

   • Incorporation agreement
   • Notary cost and fee
   • Court appointed translator assistance
   • Registration fees
   • Ads in the Official Gazette and Daily newspaper (compulsory)
   • 2 corporate seals
   • Courier service costs
4. LEGAL FEES

   You are advised appoint a lawyer  who will legally represent you in the property purchase process. DC Grupa will assist you and represent your best interest together with your lawyer. On your request we may recommend lawyers in the area of your property purchase. Lawyer fee are usually 1% of the purchase price.

5. CT (CORPORATE TAX)/CGT (CAPITAL GAIN TAX)

   For the property sale two taxes may be imposed:

   1. Capital Gains Tax (CGT) at 20 % if sold by an individual
   2. Corporation Tax (CT) at 20 % if sold by a Company.
   
   
   • Recently the CGT rate has been reduced to match the CT rate, ie 20%.
   • CGT is only applicable to properties sold within 3 years of purchase.
   • CT is applied annually to company profits, which take into account normal trading factors.
6. OPTIONAL SERVICES

   If you are buying property in Croatia but do not need agency assistance nor have you found your property through DC Grupa, but you wish to have the service of:

   • Assembly of legal documentation and title deeds check up
   • Translation services
   • Assistance with acquiring building permits
   • Assistance with project management
   • Assistance with property management and maintenance

   DC Grupa will be more than glad to provide the above mentioned services for you. For the costs and fees on the specific service please contact us by This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

   These taxes are valid today, September 2009, but may change in the future.