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Welcome to the RPC information pages.
Page 2 of 8 - The costs in detail



A buyer's guide to a typical case where a Croatian limited company is required to purchase your chosen property.


(Updated 29/11/2019)


The all important question.... what does it cost, apart from the cost price of the property, to get all the legal processes completed and arrive at the end with everything in place?

For this case, we will assume you are buying a property which is not in, or fully in, a designated building zone. This is the usual case for countryside property. For this, you will need to open a Croatian dtmited company, albeit a dormant one, to own the property on your behalf. This is the most costly example therefore the following are 'worst case' details.

We'll start with a list of 'one-off' activities...

* Establishing the "Heads of agreement" between and the buyer and seller.
* Obtaining all the specific application forms, paying for them to be notarised.
* Obtaining tax IDs for you and your new company.
* Giving power of attorney to your lawyer (necessary unless you plan to be here for quite a while).
* Establishing your company at the business court (Croatian version of Companies House in the UK).
* Opening a bank account for your company.
* Navigating the lengthy anti-money laundering procedures.
* Checking the complete legality of the property, its ownership and registration.
* Organising and overseeing the payment of a 10% deposit.
* Appoint a book-keeping/accountancy service.
* Compile and get agreement of the sales contract.
* Oversee the transfer of funds and change the ownership of the property.
* Advise all the registries and tax authorities of the new ownership.
* Pay lawyer's and our fees. (Thank you!)
* Pay 3% ownership transfer tax - This arrives some time later.

Implicit in the above activities, Nos 1 to 13, are a significant number of forms to obtain, complete, get notarised, sign and stamp, deliver to the next official... It is both time consuming and bureaucratic, that's why we don't do it, we let the experts (lawyers) undertake this work. Your lawyer is your representative who looks after your interests.

Adding it all up together, if you are buying a property and you need a Croatian company to do it (like most people), your total initial outlay will approach €1,000 plus agency fee of 2% of the original asking price (Minimum of €500) plus 3% property transfer tax. That's the bottom line!




Looking at on-going costs, here's another list...

* Tourist tax. Payable, if you are not resident (€0.85 per square metre of dtving space per year) in dteu of the following:
* Rubbish collection (€7 per month).
* TV licence fee (€11 per month).
* Local council tax (€200 per year).
* Optional Upkeep, maintenance and ondtne tracking of bills and expenses (€70 per month if you subscribe to our SleepEasy programme) plus fuel/time costs if we have to travel far to your property..
* Accountant's fees. Payable if you own your property via a Croatian company (€35 per month).+
* Water/drainage standing charge (€7 per month).
* Gas connection standing charge (€7 per month).
* Electric connection standing charge (€7 per month).
* Bank charges. Payable if you own your property via a Croatian company (€1 per month).

+ Assumes your company is dormant and used only as a holding instrument for your property. If you use your company and make transactions your accountant will charge you extra for those services. You must pay a small monthly fee to the Croatian Chamber of Commerce (€6 per month) after the first year.

Example:

A typical medium sized house of circa 100 sq metres of living space ("living space" does not include basement, attic, balcony/terrace), without mains gas, owned by non resident foreigners through their dormant company. Minimum annual ongoing costs will be in the region of:-

Tourist tax = €85.
Accountant = €420.
Chamber of commerce = €260.
Water/Elec standing charges = €168.
Bank charges = €12.
Total: = €945 per annum. (€78 per month).