Real Estate Sale in Croatia – Complete Guide

Do you have a property in Croatia that is sitting unused and costing you money every month? Have you decided that selling it could be a good way to make a profit and at the same time free yourself from the stress of worrying about the maintenance costs of an unused property? We are here to make selling your property easier! Below is a list of steps you need to take if you want to sell quickly and at a price that reflects its true value.

Read our detailed step-by-step guide and find out how to sell your property quickly and efficiently!

STEP-BY-STEP PROCEDURE FOR SELLING REAL ESTATE IN CROATIA

Selling a property can be a challenging and time-consuming process – it requires a significant investment in advertising, efforts in organizing viewings, and dealing with complex administrative and legal procedures. To save time and reduce stress, contact us for help! We will take on most of the responsibilities, allowing you to sell your property quickly and hassle-free. Every step in the property sale process is crucial to ensuring a secure sale at a price that accurately reflects its value and complies with legal requirements. These are the steps you need to take:

Step 1: Preparing the property for sale
Step 2: Determining the market value of the property by consulting a real estate agency
Step 3: Negotiating the property
Step 4: Signing the preliminary contract
Step 5: Signing the final sales contract
Step 6: What property sellers pay: Taxes and additional costs in Croatia
Step 7: Transfer of ownership to the buyer
Step 8: Receiving payment and finalizing the sale.

STEP 1: PREPARING THE PROPERTY FOR SALE

Preparing the property for sale is one of the most important steps, although it is often overlooked. The property does not have to be in perfect condition, but it is essential that it is clean and gives the impression that the previous owners took good care of it. To carry out this step correctly, follow these steps:

Clean the property inside and out, and create an attractive atmosphere for viewings.
To give buyers a clearer idea of what they are getting, remove personal items if possible.
Check if everything is working, and if not, make the necessary repairs.
Hire a good photographer to capture the property from its best angles.
Prepare the necessary documentation for the property sale (ownership deed, energy certificate, building permit, and other required documents).

STEP 2: DETERMINING THE MARKET VALUE OF THE PROPERTY BY CONSULTING A REAL ESTATE AGENCY

Property valuation is essential so that you, as the seller, know the true value of your property, but also so that the buyer pays a fair price for what they are getting. If this step is skipped, it can easily happen that you sell the property for a lower price and thus lose value in the transaction – which you definitely would not want. Since most people do not have relevant information about market price trends or know which factors increase or decrease a property’s value, the best and safest solution for this step is to hire a real estate agency.

What a real estate agency does in this step:

Getting to know your property and property valuation – the agency takes into account the specifics of your property, its location, and the supply and demand that influence price trends.
Providing advice and recommendations on how you can increase the value of your property to achieve a higher price.

STEP 3: NEGOTIATING THE PROPERTY

Negotiation is a key step for both sellers and buyers. This step involves an agreement between the seller and the buyer on the price at which the transaction will take place. Naturally, in this step, each party aims to achieve a certain interest – the seller wants to get the highest possible price, while the buyer wants to lower the property price.

For the process to be fair and for both parties to reach a satisfactory agreement, it would be useful to hire a reliable real estate agency. A real estate agent is extremely helpful in negotiating property sales because:

They have experience in negotiation and can advise you on how to increase the property’s value.
Agents have well-developed sales and marketing skills and know which property features to highlight to attract a potential buyer.
A real estate agent is communicative, reliable, and available for any questions from the buyer, of which there can sometimes be many.

STEP 4: SIGNING THE PRELIMINARY CONTRACT

Once you find a buyer and agree on a price – it’s time to sign the preliminary contract for the sale of the property. Signing a preliminary contract is legally binding in Croatia, as it is a document that ensures the transaction will take place and that both parties are committed to the sale. The preliminary contract includes:

Details about the property: A detailed description of the property, including address, size, number of rooms, land, and everything included in the property sale.
Price: The preliminary contract contains information about the agreed-upon price of the property, the payment method, and the deposit amount.
Payment method: Information on whether the property will be purchased with cash, through a loan, or in some other way. The date of ownership transfer and the resolution of final processes.
Consequences of non-compliance with the contract: It is common practice to return the deposit in double the amount if the seller withdraws from the sale.

STEP 5: SIGNING THE FINAL SALES CONTRACT

After the preliminary contract is signed, the buyer secures the necessary financing, prepares the required documentation, and after all administrative issues are resolved and the conditions stated in the preliminary contract are met – the main purchase contract is signed.

The property purchase contract contains:

Details about the property
Price and payment terms
Date of ownership transfer and contract signing
A guarantee that the documentation is correct and the process is legally conducted
Special conditions if the parties have agreed on them.

STEP 6: WHAT PROPERTY SELLERS PAY: TAXES AND ADDITIONAL COSTS IN CROATIA

If you were wondering if Croatia has a property tax and what additional costs are involved in a real estate transaction – the answer is yes, there are certain taxes. However, it is important to distinguish between types of taxes depending on who is responsible for paying them and when.

Financial obligations of the seller when selling property in Croatia:

Capital gains tax on property sales: This tax is paid if you sell a property within two years of purchase and have not used it as your place of residence. It amounts to 10% on the price difference (capital gain). However, if the property was your first and only home, you are exempt from paying this tax.
Legal and notary fees: Depending on your agreement with the buyer or the real estate agency you hired, you may need to cover part or all of the costs of these services.
Document procurement costs: If you are missing some necessary documents, you will need to set aside funds to obtain them. For example, the energy certificate is often a document that sellers are not familiar with and often do not have.
VAT: If you are selling a property through a company, then instead of the real estate transfer tax, you must pay 25% VAT.
Agency commission: The standard commission is 3% plus VAT of the final sale price, or a different amount depending on your agreement with the agency.

To avoid overlooking any potential costs, a smart decision would be to consult a Croatian real estate agency about your specific case. This way, you will gain a clearer insight into all the costs you might incur if you decide to sell your property.

STEP 7: TRANSFER OF OWNERSHIP TO THE BUYER

After the sales contract is signed, the next steps include registering the changes in the land registry, notifying utility companies of the change in ownership, and handing over the keys and the property itself.

STEP 8: RECEIVING PAYMENT AND FINALIZING THE SALE

The final step in finalizing the property sale relates to the financial side of the transaction. After the buyer makes the full payment of the remaining price and processes all payment confirmations, as well as all other financial obligations, the sale can be considered finalized.

WHAT IS THE BEST WAY TO SELL YOUR PROPERTY QUICKLY?

To sell your property quickly, there are several key steps:

Prepare it as best you can – tidy up both the interior and exterior to make it look attractive.
Have all the necessary documentation ready on time – don’t get into a situation where you are missing “just one document.”
Hire a real estate agent who will use their experience and skills to help you sell the property quickly and at a fair price.

SOLHOME - YOUR RELIABLE PARTNER FOR SELLING REAL ESTATE AT THE RIGHT PRICE

Are you ready to sell a property you no longer need – turn it into a profit while eliminating constant maintenance costs? Solhome connects you with buyers ready to invest in your property, negotiates on your behalf to ensure a fair return that reflects its true market value, and precisely handles all administrative and legal complexities. Contact us – we look forward to meeting you!