What are the Purchase Costs of Buying Property Hvar Island?

The following are the costs associated with purchasing Croatian real estate.

Croatia Real Estate Transfer Tax & VAT

Buying a property built before December 31st 1997:

5% RETT* (Croatia Real Estate Transfer Tax) on the value of the contract.

Buying a property built after December 31st 1997 from a VAT registered developer or self-employed builder.

22% VAT calculated on the costs to build the property. (Usually absorbed by the seller into the price) plus 5% RETT* (Croatia Real Estate Transfer Tax) calculated on the land value portion of the sale.

Buying a property built after December 31st 1997 as a private sale.

5% RETT* (Croatia Real Estate Transfer Tax) on the value of the contract. (Assuming no refurbishment have been carried out on the building which would attract VAT)

* Croatia Real Estate Transfer Tax (RETT) is assessed on the market value of the Croatian real estate, as determined by the local tax authorities, in this case on Hvar Island.

Legal Fees

On average 1.5 % + VAT or 1.83% including VAT, of the Hvar property purchase price.

If you are buying via Croatian real estate company route you will have additional legal and notary fees of around 1500 Euros.

Real Estate Hvar - Agency Fees

At Hvar Estates we have a fixed rate policy of 4% + VAT or 4.88 % including VAT of the purchase price from the buyer for all off-plan development on Hvar. For existing hvar property, we charge 3% + VAT or 3.66% including VAT of the total purchase price from the buyer.

At Hvar Estates, during the summer period between May and September, we charge 30 Euro a day as a viewing fee. This charge is then refundable if the client purchases a Hvar Island property through us.

At Hvar Estates we operate a policy:
NO COMPLETION – NO COMMISSION