Are you in the process of buying real estate in Croatia and need advice? You are in the right place! Croatia Real Estates agency, the leading real estate agency in the Republic of Croatia, offers you practical advice that will help you when selling and buying real estate!
From the beginning to the end of the whole process, the Croatia Real Estates agency helps you to successfully sell/buy the desired property in the smartest and most financially profitable way!
When buying real estate, it is desirable to have an adequate agent or real estate agency as an intermediary between the seller and the buyer. The basic role of an intermediary (real estate agency) is to represent the principal (the person who sells real estate) in the sale, purchase, exchange, rental, and hiring of real estate.
Intermediaries, that is, agents, in addition to representing the principal in the purchase, can also provide additional services depending on the scope of registered activities and the expertise of the employees: advisory services in the development of projects and investments, giving opinions on the market value of the real estate, advertising real estate on the Internet, settling the situation in land registers and cadastre, Issuance of various documents and permits, Transcription of overhead costs, Preparation of sales and other documentation, etc.
When buying real estate, an authorized legal intermediary (real estate agency/agent) is obliged to charge an intermediary fee/commission → based on the Act on Real Estate Brokerage. Based on the Law on Real Estate Brokerage, the obligation to pay the broker’s commission arises exclusively for the principal.
This is the person who hired the agency to mediate for him. The agency may charge its mediation commission only if it is engaged by the client and has concluded a mediation agreement. Within the Republic of Croatia, the average commission for a real estate agent is 3% + VAT.
In order to successfully carry out your purchase, in addition to the cooperation of the real estate agency, the legal services of an authorized legal representative, i.e. a lawyer/law firm, will be an additional cost. Attorney’s fees can vary, but on average they are charged at 1% + VAT, according to the provisions prescribed by the Ministry of Justice of the Republic of Croatia.
When purchasing real estate, the real estate buyer is liable for real estate sales tax. Real estate transfer tax is paid at a rate of 3% on the market value of the real estate at the time of the tax liability. The acquirer of real estate can be exempted from the obligation to pay real estate sales tax if he meets the prescribed conditions.
The declaration of tax liability is considered completed by the delivery of documents from notaries public and courts, and the real estate taxpayer is obliged to submit the Real Estate Transaction Declaration form only if the document has not been certified by a notary public or has not been issued by a court or public law body within its jurisdiction, or at the invitation of the Tax Administration.
The real estate taxpayer is obliged to pay the tax liability within 15 days from the date of delivery of the decision on determining the real estate tax since the appeal does not delay the execution of either the temporary or the tax decision.
Buying a residential property in Croatia depends on several factors and can be quite challenging. However, the price of the property varies and depends on many factors. In order to establish the final costs of your purchase, you will first need to establish the value (price) of the property itself (the price and value of the property itself are obtained based on some factors such as location, age, necessary renovation works of the property, etc.) and the price of intermediary services (real estate agency).
When all that is added up and subtracted, buying a property can be challenging on the budget and nerves! In order to avoid additional costs and experience the entire process without additional stress, choose Croatia Real Estates agency for the best brokerage in Croatia!
