Real estate

Cost of property in Split for foreign buyers: purchase taxes and annual obligations

21 October 2026 / Regent Split

Summary

The most predictable cost of ownership in Split for a foreign buyer is not coffee on the Riva, but the property itself — how it is paid for upon purchase, how much is paid annually while you own it, and how much rent costs as an alternative. Upon purchase, a real estate transfer tax of 3% is paid, or, for new construction from an investor, VAT of 25% (never both). The annual property tax in Split is €5.00/m², but it is not paid on property where you permanently reside. Daily living costs vary too much for a guide to fairly estimate them, so we direct you to where to check them.

Key facts

When purchasing, a real estate transfer tax of 3% or VAT of 25% (for new construction) is paid, never both.
The transfer tax rate is the same for domestic and foreign buyers.
The annual property tax in Split is €5.00/m² of usable area, with exemptions for primary residence and long-term rentals.
Long-term rental is taxed as income from property, effectively around 8.4% of gross rent.
Daily living costs vary too much and are not estimated in this guide.
A foreign buyer should also check their tax position in their home country.

For a foreign buyer considering Split, costs related to the property itself are the only part of the budget that can be stated with concrete figures — because they arise from regulations and actual transactions, not from lifestyle. That's why this guide covers property purchase tax, annual property tax, and rental taxation, deliberately setting aside daily expenses (food, transport, entertainment), with guidance on where to find them.

Tax rates and thresholds in this text are stated according to the regulations valid at the time of writing; since they can change, and annual property tax is determined by each city separately, it is worth checking the specific amounts for your location and on the day of purchase.

Tax on Purchase: Real Estate Transfer Tax and VAT on New Builds

When purchasing a used (existing) property, the buyer pays real estate transfer tax at a rate of 3% of the market value. This cost is paid once, upon acquisition, and is the same regardless of whether a domestic or foreign citizen is buying. For new builds purchased directly from an investor in the VAT system, the mechanism is different: instead of transfer tax, VAT at a rate of 25% is included in the price, so it does not come as a separate invoice after signing. Therefore, for the same transaction, one or the other is paid — never both.

For the buyer, this means that the comparison of „is a new build or an old build cheaper" depends not only on the tax rate but on the property's price itself, so a fair comparison can only be made with a specific property. Since a large part of the offer in the Split area consists of new builds, many foreign buyers will encounter the VAT mechanism rather than the classic transfer tax.

Professional advice: Before comparing two properties by price, check which tax applies to which — for new builds from an investor, VAT is already included in the price, while for used properties, transfer tax is paid subsequently based on a decision from the Tax Administration, so „the same price" doesn't always mean the same total cost.

Annual Property Tax in Split and its Surroundings

After purchase, the annual property tax is a recurring cost determined by the city, not the state — it is a local, not national tax, regulated by the Law on Local Taxes (Official Gazette, no. 115/16, 101/17, 114/22, 114/23 and 152/24). The rate varies from place to place within the legal range of 0.60 to 8.00 € per m² of usable area annually, and if a city does not make its own decision, the lowest rate of 0.60 €/m² applies. In Split, the rate is 5.00 €/m². For illustration, an apartment with a usable area of 60 m² in Split would incur 300 € annually, and an apartment of 100 m² around 500 € annually. In the Split area, rates differ, so for a specific location, it is worth checking the valid decision of the city or municipality.

It is crucial, especially for foreign buyers, to know that this tax is not paid on every property. Properties where the owner or family members permanently reside (domicile) and properties given for long-term lease are exempt, so in practice, the annual tax primarily applies to properties for vacation and occasional use. If you plan to make Split your home and register your domicile, the property is generally not subject to this tax; if you are buying it as a second property for occasional stays, the tax should be included in your annual budget.

Professional advice: Before buying, clarify whether the property will be your permanent residence or a holiday home — this directly determines whether you pay annual property tax; the same apartment can be exempt for someone living in it, but not for an owner who visits occasionally.

Taxation of Rentals for Owners

Not all foreign buyers immediately opt for ownership, nor does every owner reside in the property — some rent it out. Long-term rentals are taxed as income from property: 30% of flat-rate expenses are recognized from the agreed rent, and tax at a rate of 12% is paid on the remaining 70%. This means an effective burden of approximately 8.4% of the gross rent. This cost falls on the owner, not the tenant, and the contract is reported to the Tax Administration, which issues a decision based on it.

Short-term (tourist) rentals are taxed differently — as a flat rate, according to the number of beds and location — and carry their own registration obligations. For a foreign owner coming from the EU, USA, or another country, it is also worth keeping in mind their tax position in their home country: income from property in Croatia is generally taxed in Croatia, but the final treatment depends on the double taxation agreement and the regulations of the home country, so this is a question for a tax advisor.

Professional advice: If you plan to rent out, include an effective approximately 8.4% tax on long-term rentals (or a flat rate for tourist rentals), reserve funds, and maintenance in your yield calculation from the start — gross rent and net income differ significantly, so „yield from the ad" rarely corresponds to what you actually keep.

Value Growth and Yield: Realistic Expectations

Some foreign buyers in Split and its surroundings are not just looking for a place to live, but also a property that generates a return. It's worth being precise rather than optimistic here. According to data from the Croatian Bureau of Statistics and Eurostat, property prices in Croatia have been among the fastest-growing in the European Union in recent years, so the main source of return has so far been value growth, not rental income, which is typically modest. However, past growth is no guarantee of future growth, and it's worth checking current price trends for a specific period and location before making a decision.

Every specific projection of yield depends on the price, location, method of use, and market conditions, so we do not present it as a promise of outcome. Regent is not a licensed financial advisor; you make the decision on the balance of yield and risk with a financial advisor, while we help you assess the property itself and the tax mechanism that applies to it. We write about the methods for determining property value in the guide property valuation.

Professional advice: If you are buying as an investment, look for specific figures for a specific property, not general statements about „sought-after locations" — and separate value growth (uncertain, market-dependent) from rental yield (modest, but measurable), as these are not the same source of return.

What This Guide Does Not Evaluate and Where to Check

Groceries, fuel, utility services, entertainment, and tuition fees are a real part of the cost of living in Split, but they vary significantly depending on the household, season, and habits. We intentionally do not evaluate these categories because they are not part of the verified data available to the agency, and one wrong figure in such a guide is more costly than ten omitted ones. For these, it is more reliable to consult the Croatian Bureau of Statistics or an independent relocation cost calculator.

What we can state precisely are the cost aspects related to the property itself — purchase, annual tax, and, if relevant, rental — because these are figures derived from regulations and actual transactions. For everything else, including your personal tax position in your home country, we will direct you to the right experts.

Professional advice: Build your relocation budget in two layers — verifiable property costs (taxes, annual tax, reserve fund) and variable living costs; treat the former as solid figures, and estimate the latter based on your own habits from statistics, not from others' averages.

How Regent Can Help You

For foreign buyers in Split and its surroundings, we help understand the part of the cost that can be concretely calculated — the tax mechanism applied to a specific property, annual obligations, and, if relevant, the framework for rental taxation — and to verify the legal and land registry status before purchase. We leave personal tax positions and investment decisions to a tax and financial advisor, and we conduct communication in a language that suits you, so that the process is not prolonged due to a language barrier.

For advice tailored to your situation, see what buying with Regent looks like, support for foreign buyers, or contact us.

Frequently Asked Questions (FAQ)

Does a foreign buyer pay more real estate transfer tax than a domestic one?
No. The real estate transfer tax at a rate of 3% applies equally, regardless of the buyer's citizenship. What might differ is the obligation to declare and pay taxes in the buyer's home country, which is a question for a tax advisor in that country, not for a Croatian agency.

What is the annual property tax in Split?
In Split, the rate is 5.00 euros per square meter of usable area annually, but this is a local rate that each city determines within the legal range of 0.60 to 8.00 €/m², so check it for your specific location. The tax is not paid on properties where the owner permanently resides (domicile) nor on those leased long-term for at least 10 months, so in practice, it primarily applies to properties for vacation and occasional use.

Is both transfer tax and VAT paid upon purchase?
No — one or the other applies, never both. For used properties, a real estate transfer tax of 3% is paid, while for new builds purchased from an investor in the VAT system, VAT of 25% is included in the price instead of transfer tax.

What is the income tax on long-term rentals?
Long-term rentals are taxed as income from property: 30% of flat-rate expenses are recognized, and tax at a rate of 12% is paid on the remaining 70% of the rent, which means an effective rate of approximately 8.4% of the gross rent. The contract is reported to the Tax Administration, and the cost falls on the owner, not the tenant.

Does this guide estimate daily living costs in Split?
No. Groceries, transportation, utility services, and similar costs vary too much by household and habits for a guide to fairly estimate them. For such data, consult the Croatian Bureau of Statistics or an independent cost calculator, not a real estate agency.

Do I also have to pay tax in my home country?
It depends on your home country and the double taxation agreement it has with Croatia. Income from property in Croatia can generally be taxed in Croatia, but the final position depends on the regulations of the home country — this is a question for a tax advisor.