Selling Inherited Property in Croatia
Inheriting a property in Croatia is one thing. Deciding to sell it — and actually being able to — requires a clear understanding of what must be in place legally before a sale can proceed, what taxes apply to the sale proceeds, and how to manage the entire process from abroad. Foreign heirs and members of the Croatian diaspora frequently find themselves in this position, and the path from inheritance to completed sale involves several distinct steps that must be taken in the right order.
This guide explains what needs to happen before you can sell inherited Croatian property, how Croatian capital gains tax applies to inherited property sales, what to do when there are multiple heirs with different intentions, and how the sale itself is structured under Croatian law.
Before You Can Sell: What Must Be in Place
A sale of inherited Croatian property cannot proceed until three things are in place: the Croatian probate proceedings are concluded, the heirs are registered as owners in the Croatian land registry, and each selling heir has a valid OIB. Attempting to sell before these steps are completed is not legally possible.
Completing the Croatian Probate Proceedings
The starting point is always the Croatian probate procedure (ostavinska rasprava), which establishes who the heirs are and in what shares they inherit the estate. The probate is conducted by a notary public acting as court commissioner, and it concludes with the issuance of an inheritance decision (rješenje o nasljeđivanju). Without this document, there is no legal basis to proceed with a sale.
If the deceased was habitually resident in another EU country, probate may have been conducted there, and the resulting foreign inheritance decision or a European Certificate of Succession can in many cases be used as the basis for the Croatian land registry step. For heirs of someone who lived outside the EU, Croatian probate proceedings are typically conducted in Croatia. For a full explanation of how Croatian probate works, see our guide on probate procedure in Croatia.
Land Registry Registration in Your Name
The inheritance decision establishes your rights as an heir, but it does not automatically make you the registered owner of the property in the Croatian land registry. A separate registration step is required to have your name entered in the land registry as the legal owner. Until this is done, the deceased person’s name remains on record, and no sale can be concluded — a buyer and their notary will verify ownership in the land registry before any transaction proceeds.
The registration is handled either ex officio by the notary who conducted the probate, or by a Croatian lawyer filing the application. In practice, following up with a lawyer to ensure the registration is completed without unnecessary delay is strongly recommended, particularly if you are planning to sell. For a guide to reading Croatian land registry records and understanding what the entries mean, see our post on how to check property ownership in Croatia.
OIB for Every Selling Heir
Every heir who is to be registered in the Croatian land registry — and every seller in a Croatian real estate transaction — must have a valid Croatian OIB (osobni identifikacijski broj). The OIB is required at both the probate stage and the sale stage: it must appear on the sale contract, the notarisation documents, and the land registry transfer application. Without an OIB, neither the land registry registration nor the sale can be completed. For foreign heirs, the OIB can be obtained remotely through a Croatian embassy or through a Croatian lawyer acting under power of attorney. See our full guide on how to get an OIB in Croatia as a foreigner.
Capital Gains Tax on Selling Inherited Property in Croatia
Whether the sale of your inherited Croatian property triggers Croatian capital gains tax depends primarily on how long ago the deceased died — not on how long ago the probate was completed or the land registry updated.
The Two-Year Exemption
Under Croatian personal income tax rules, income from the sale of real estate is exempt from capital gains tax if the property is sold more than two years after the date of acquisition. If you sell within two years of acquisition, the gain — the difference between the sale price and the acquisition price — is subject to Croatian capital gains tax at the applicable rate.
When Does the Two-Year Period Begin for Inherited Property?
This is a point that catches many foreign heirs by surprise, and it works in their favour. Under Croatian law, succession occurs automatically at the moment of death — the legal term is ipso iure. This means that for capital gains tax purposes, the date of acquisition of inherited property is the date of death of the deceased, not the date the inheritance decision was issued and not the date the land registry was updated.
In practice, this means that if someone died several years ago and the probate proceedings took a long time to complete, the two-year clock has been running from the date of death throughout. By the time the land registry is finally updated and you are in a position to sell, you may already be well past the two-year threshold — and the sale would be fully exempt from Croatian capital gains tax.
Transfer Tax: Who Pays?
The real estate transfer tax of 3% of the property’s market value is paid by the buyer, not the seller. As a selling heir, you are not liable for the transfer tax on the transaction — that cost falls to the person purchasing the property from you. The one exception is new construction subject to VAT, but inherited properties are almost never new builds in this sense.
The tax rules applicable to your specific sale — particularly if you are a non-resident selling Croatian property and have tax obligations in your country of residence as well — can be complex. Croatian capital gains tax obligations and home-country tax treatment should both be reviewed before proceeding. A Croatian lawyer or tax adviser can assist with the Croatian side of this analysis.
Inherited a Property in Croatia and Want to Sell?
Kontić Legal assists foreign heirs with every step from completing the probate and land registry registration through to the sale transaction itself — all under power of attorney, without you needing to travel to Croatia. Contact us to discuss your situation.
Selling When There Are Multiple Heirs
Inherited Croatian property frequently passes to more than one heir. When this happens, each heir owns an undivided share of the property as a co-owner. Selling the property requires the agreement and participation of all co-owners — one heir cannot sell the entire property, or their share in isolation, without the cooperation of the others.
When All Heirs Agree to Sell
If all heirs agree that the property should be sold, they sell jointly as co-owners. The sale contract is signed by all sellers, or by a single lawyer holding a power of attorney from each heir. The sale proceeds are distributed to the heirs in proportion to their respective inheritance shares. This is the straightforward path, and with proper coordination it can proceed smoothly even when heirs are spread across multiple countries.
When Heirs Cannot Agree
If some heirs wish to sell and others do not, or if heirs cannot agree on price or timing, the situation becomes more complex. A co-owner who wishes to exit has the option to sell their individual share to a third party, though in practice finding a buyer for an undivided share is difficult and the price achieved is typically lower than for a whole property.
Alternatively, any co-owner can initiate a court procedure for the division of the co-ownership (dioba suvlasništva). If the property cannot be physically divided — which is usually the case with a house or apartment — the court can order a compulsory sale of the entire property and distribution of the proceeds among the co-owners. This process is time-consuming and costly, and it is generally in all parties’ interests to reach an agreement before resorting to it.
Practical situations where this arises often involve heirs living in different countries with different financial circumstances and time pressures. Early legal advice on the options available to each co-owner — including the possibility of one heir buying out the others before selling to a third party — can prevent a dispute from escalating into litigation.
How the Sale of Inherited Property Works in Croatia
Once the probate is concluded, the land registry is updated, and the heirs have agreed to sell, the sale itself follows the standard Croatian real estate transaction process.
Pre-Sale Contract and Deposit
Croatian real estate transactions typically begin with a pre-sale contract (predugovor) under which the buyer pays a deposit — usually 10% of the agreed price — as a commitment to complete the purchase. This deposit is called kapara. If the buyer withdraws, they forfeit the deposit. If the seller withdraws, they must return double the deposit to the buyer. The pre-sale contract must be in writing; for foreign heirs selling remotely, it is signed under power of attorney.
The Main Sale Contract and Notarisation
The main sale contract must be concluded in writing and notarised by a Croatian notary public (javni bilježnik). The contract must contain a clausula intabulandi — the seller’s explicit authorisation for the land registry to transfer ownership to the buyer. Without this clause, or without the seller’s separate written consent to the transfer, the buyer cannot be registered as the new owner in the land registry regardless of whether the purchase price has been paid.
For a detailed explanation of what the main sale contract must contain and how the transaction proceeds from contract to land registry transfer, see our guide on the Croatian property purchase process.
Selling Remotely Under Power of Attorney
Foreign heirs are not required to travel to Croatia to sell the inherited property. A Croatian lawyer can be authorised by each selling heir under a notarised power of attorney to sign both the pre-sale contract and the main sale contract, attend the notarisation, and manage all administrative steps including the tax reporting obligation. The power of attorney must be notarised in the heir’s country of residence and in most cases accompanied by an apostille.
Where there are multiple heirs, each must provide a separate power of attorney. Coordinating these documents across multiple countries and time zones is part of the legal work involved, and having a single Croatian lawyer acting for all heirs significantly simplifies the process.
Ready to Sell Your Inherited Croatian Property?
Kontić Legal handles the full process for foreign heirs: probate and land registry registration if not yet completed, OIB procurement, coordination among multiple heirs, and the full sale transaction under power of attorney. Contact us to discuss your situation.
Frequently Asked Questions: Selling Inherited Property in Croatia
No. The inherited property cannot be sold until the probate proceedings are concluded, the inheritance decision is issued, and you are registered as the owner in the Croatian land registry. Until the land registry shows you as the legal owner, there is no valid legal basis for a sale. A buyer’s notary will verify ownership in the land registry before any contract is signed.
Only if you sell within two years of the date of acquisition. For inherited property, the acquisition date is the date of death of the deceased — not the date of the inheritance decision or the land registry update. If more than two years have passed since the deceased died, the sale is exempt from Croatian capital gains tax. If the deceased died recently and the two-year period has not yet passed, capital gains tax applies to the difference between the sale price and the acquisition price. In either case, the sale must be reported to the Tax Administration within 30 days.
From the date of death. Under Croatian law, succession occurs automatically at the moment of death (ipso iure). The inheritance decision is declaratory — it confirms rights that already arose at death. For capital gains tax purposes, the two-year holding period begins on the date of death. If several years have passed since the deceased died, even if probate took a long time, you will likely already qualify for the two-year exemption by the time you are in a position to sell.
As co-owners, all heirs must agree for the entire property to be sold. If one heir does not wish to sell, the others can consider buying out that heir’s share, or the dissenting heir can sell their individual share to a third party. If no agreement is reached, any co-owner can initiate a court procedure for division of co-ownership, which may result in a compulsory sale of the property and distribution of proceeds. This process is time-consuming, and legal advice early in the process is strongly recommended to explore all options before resorting to litigation.
No. You can authorise a Croatian lawyer to sign both the pre-sale contract and the main sale contract, attend the notarisation, and manage all administrative steps under a notarised power of attorney. The power of attorney must be notarised in your country of residence and accompanied by an apostille in most cases. Where there are multiple heirs selling jointly, each heir must provide a separate power of attorney.
The buyer pays the 3% real estate transfer tax, not the seller. As a selling heir, you are not liable for this tax. The buyer is responsible for paying it to the Tax Administration within the prescribed deadline after the transaction is concluded.
The clausula intabulandi is the seller’s explicit written authorisation for the land registry to transfer ownership to the buyer. It must be included in the sale contract or provided as a separate document. Without it, the buyer cannot be registered as the new owner in the land registry, regardless of whether the purchase price has been paid. A Croatian lawyer ensures the clausula intabulandi is correctly included and certified in every sale contract.
The sale of Croatian property by a non-resident may trigger tax obligations both in Croatia and in your country of residence or citizenship. Croatia may have a double taxation agreement with your country that determines which country has the primary right to tax the gain, or provides for a credit for taxes paid. The Croatian side of this analysis — whether Croatian capital gains tax is due and how to report the transaction — is handled by your Croatian lawyer. The home-country side should be reviewed with a tax adviser in your country before the sale is completed.
How Kontić Legal Can Help
Kontić Legal assists foreign heirs and diaspora families with the complete process of selling inherited Croatian property. We start where most clients start: with an estate that has not yet cleared all the legal prerequisites for sale. We complete the outstanding probate or land registry steps, obtain OIBs for all heirs who do not yet have one, and then manage the full sale transaction under power of attorney.
Where there are multiple heirs, we coordinate among all parties, prepare the necessary powers of attorney, and ensure the transaction proceeds efficiently regardless of where each heir is located. We review sale contracts, ensure the clausula intabulandi is correctly included and certified, and handle the post-sale tax reporting obligation to the Croatian Tax Administration.
For more information about our inheritance law practice, visit our Croatian inheritance lawyer page. For related guides, see our posts on Croatian inheritance law for the diaspora and the probate procedure in Croatia. To discuss your specific situation, use the contact form below.
