Preparing the Documents
Before listing the property for sale, it is necessary to prepare certain documents, such as the ownership certificate, construction permits, etc.
As the owner or seller of real estate, you are also obliged to obtain an energy certificate and present it to potential buyers.
As the owner or seller of real estate, you are also obliged to obtain an energy certificate and present it to potential buyers.
Sales/Purchase Contracts
When buying real estate, it is usual to sign a pre-contract in which the property is defined by specifying land registry data (cadastral municipality, parcel number and land registry insert number in which the property is registered) and a description of the property (e.g. for an apartment, it is the address, floor, apartment number, room description) which includes the total area), the price, the date of conclusion of the final contract and the date of payment of the down payment.
The deposit is usually agreed in the amount of 10% of the agreed price, and is paid as a guarantee that the seller and the buyer will not abandon the sale.
If the buyer refused, the seller would keep the received deposit in full, and if the seller refused, then he would be obliged to pay the buyer double the amount of the deposit.
The preliminary agreement on the purchase and sale of real estate must be certified by a notary public.
Everything mentioned in the pre-contract is transferred to the main sales contract, except that the date of handing over the property to the new owner is additionally entered, as well as the seller's guarantee that there are no rights of third parties on the property.
The sales contract is certified in several copies by a notary public. One copy of the contract is kept by the seller, the buyer and the notary public. One copy is submitted to the ZK department of the competent court (when proposing to register ownership), and another copy is submitted to the tax administration (when reporting real estate sales tax).
The deposit is usually agreed in the amount of 10% of the agreed price, and is paid as a guarantee that the seller and the buyer will not abandon the sale.
If the buyer refused, the seller would keep the received deposit in full, and if the seller refused, then he would be obliged to pay the buyer double the amount of the deposit.
The preliminary agreement on the purchase and sale of real estate must be certified by a notary public.
Everything mentioned in the pre-contract is transferred to the main sales contract, except that the date of handing over the property to the new owner is additionally entered, as well as the seller's guarantee that there are no rights of third parties on the property.
The sales contract is certified in several copies by a notary public. One copy of the contract is kept by the seller, the buyer and the notary public. One copy is submitted to the ZK department of the competent court (when proposing to register ownership), and another copy is submitted to the tax administration (when reporting real estate sales tax).
Tax payment information
Real estate transfer tax is reported and paid by the buyer, but as a seller, you can become liable for property income tax based on the alienation of real estate if you sold, gifted, exchanged or otherwise transferred the acquired or donated real estate to another person within three years of its acquisition.
You are exempt from paying this tax if:
If you are not exempt from paying taxes, you must submit a declaration of income from property based on the alienation of real estate to the competent office of the Tax Administration according to your place of residence within eight days of the alienation of the real estate.
The tax rate is 25 percent, and it is calculated on the basis of the difference between the income from the sale of real estate (determined according to the market value) and the purchase value of the real estate increased by the increase in the producer prices of industrial products.
You are exempt from paying this tax if:
- the property served as a residence for you and dependent members of your immediate family
- alienation between spouses and relatives in the first line and other members of the immediate family
- alienation between divorced spouses, if the alienation is directly related to the divorce
- alienation in direct connection with the inheritance of real estate
- real estate alienated after three years from the date of acquisition.
If you are not exempt from paying taxes, you must submit a declaration of income from property based on the alienation of real estate to the competent office of the Tax Administration according to your place of residence within eight days of the alienation of the real estate.
The tax rate is 25 percent, and it is calculated on the basis of the difference between the income from the sale of real estate (determined according to the market value) and the purchase value of the real estate increased by the increase in the producer prices of industrial products.
Signing the pre-contract
When buying real estate, it is usual to sign a pre-contract in which the real estate is defined by specifying land registry data (cadastral municipality, plot number and land registry insert number in which the property is registered) and a description of the property (e.g. for an apartment, it is the address, floor, apartment number, room description) which includes the total area), the price, the date of conclusion of the final contract and the date of payment of the down payment.
The deposit is usually agreed in the amount of 10% of the agreed price, and is paid as a guarantee that the seller and the buyer will not abandon the sale.
If the buyer refused, the seller would keep the received deposit in full, and if the seller refused, then he would be obliged to pay the buyer double the amount of the deposit.
The preliminary agreement on the purchase and sale of real estate must be certified by a notary public.
The deposit is usually agreed in the amount of 10% of the agreed price, and is paid as a guarantee that the seller and the buyer will not abandon the sale.
If the buyer refused, the seller would keep the received deposit in full, and if the seller refused, then he would be obliged to pay the buyer double the amount of the deposit.
The preliminary agreement on the purchase and sale of real estate must be certified by a notary public.
Main Sales/Purchse Contract
Everything mentioned in the pre-contract is transferred to the main sales contract, except that the date of handing over the property to the new owner is additionally entered, as well as the seller's guarantee that there are no rights of third parties on the property.
The sales contract is certified in several copies by a notary public. One copy of the contract is kept by the seller, the buyer and the notary public. One copy is submitted to the ZK department of the competent court (when proposing to register ownership), and another copy is submitted to the tax administration (when reporting real estate sales tax).
If the real estate is bought with a loan (partly or in full), then one copy of the contract must be submitted to the bank in order to be able to register a mortgage on the real estate.
When buying real estate, the seller is obliged to submit an energy certificate.
The sales contract is certified in several copies by a notary public. One copy of the contract is kept by the seller, the buyer and the notary public. One copy is submitted to the ZK department of the competent court (when proposing to register ownership), and another copy is submitted to the tax administration (when reporting real estate sales tax).
If the real estate is bought with a loan (partly or in full), then one copy of the contract must be submitted to the bank in order to be able to register a mortgage on the real estate.
When buying real estate, the seller is obliged to submit an energy certificate.
Ownership Registration
The right of ownership of the real estate based on the contract of sale is acquired by registration in the land register.
Tax payment
The purchase of real estate must be reported to Croatian IRS office (Porezna Uprava) of the tax administration within 30 days of the conclusion of the sales contract. Real estate sales tax is calculated at the rate of 3% of the market value of the real estate at the time of acquisition and is paid by the buyer.