Buying a property in Croatia

Top tips for buyers of real estate in Croatia 

The number of people that are looking for property in Croatia for sale has increased. The expenses may vary depending on the citizenship of a buyer, region where the real estate is, it's micro location and the choice you are going to make when choosing the real estate agency.

Same is the case when selling a property. In Croatia, when selling a property you must have a clean property title and documents. For many years, the real estate in Croatia is handled in the family and divided among descendants. Due to this today, in Croatia real estate, there are lots of legal owners who live on different parts of the world.


Here are some tips for buying a property in Croatia

After Croatia became part of European Union, all citizens from European Union can purchase real estate in Croatia same as Croatian citizens. On the other side, citizens from other countries, outside the EU, have to get prior consent from Ministry of Justice. The statement of consent is issued to those citizens whose country has a 'Reciprocity Agreement' with Croatia.

1. Buy property as an individual only
All citizens of EU can buy real estate in Croatia in the same way as Croats, except for non EU Citizens who need Ministry of Justice approval. The time period to get consent is 6 months approximately but during the waiting you can get possession of the property and calmly use it.

2. Buy property as legal entity
Another option is to establish your own company in Croatia, which is an easy process and many conditions are not applied. There can be only one founder and the whole process will take you few weeks. To open an Ltd company, you need to deposit 2.700,00 Eur minimum of a share capital that can be withdrawn back after establishment. Moreover, there are some expenses of approx.1.000,00 Eur that reffer to handeling the opening documentation that can be done by a lawyer or a public notary. What is important for the founder is to be present at the moment of opening, just for few houres.

3. Preliminary phase
First step in the process of buying a property is to sign a Pre-contract which is made by your agencies attorney and make down payment, which is usually 10% of selling price. If you buy it as person, the documents need to be submitted to get approval of the ministry.

4. Final Contract
As determined in Pre-contract by specific date you have to sign Final contract and do total payment to the seller. Therefore, you become the owner of that property and entire possession is yours.

Here is some information needed to buy Croatia houses for sale:
- The Croatian unique PIN number (OIB), obtained in one day by tax office
- The property should have the following documents: building permit, location information and usage permit. All these are official documents that show your building is built legally and can be used for living.
- Energy certificate is obligatory when buying/selling a property
- Passport or ID card to clarify your identity



These are questions and answers on some frequently asked questions about real estate in Croatia, for any other questions feel free to contact us or come to our office and we will be glad to help you.

1. Can foreign nationals buy real estate in Croatia?

Foreign nationals belonging to EU Member States can purchase real estate in the same way as Croatian nationals. Foreign nationals belonging to non-EU countries can purchase real estate in Croatia with cumulatively fulfilled two conditions: reciprocity agreement with the Republic of Croatia and consent of the Ministry of Justice.

2. What is the real estate tax in the Republic of Croatia?

The Republic of Croatia has a unique real estate tax rate of 3%. The amount of tax is determined on the basis of the price from the contract of sale and the assessment of the competent tax administration. According to the law, the buyer pays tax on the received solution only once.

3. What is the tax on real estate swap?

The tax is also 3%, so each property owner pays 3% of the estimated value of the property for the new property when swapping.

4. In what time span real estate sales tax must be paid?

The tax liability arises at the time of the conclusion of the contract or other legal transaction that acquires the real estate. The notary is obliged to submit one copy of the document to the Tax Administration within 30 days from the signature on the sale documents. The taxpayer is obliged to pay the determined tax within 15 days from the delivery of the decision on determining the real estate sales tax.

5. What is a down payment and how much is it?

A down payment is an insurance that the buyer pays to the seller as a sign that the contract has been concluded and a certainty that the obligation will be fulfilled. In practice, the down payment is given on the Pre-contract and is usually 10% of the agreed purchase price. In case of fulfillment of the contract, the down payment is calculated in the total amount of the agreed purchase price.

6. Can the amount of real estate purchase be paid in foreign currency?

In principle, no. Every sale in the Republic of Croatia must be paid in EURO. If a foreign currency payment is made, the bank will convert it to EURO.

7. Is it possible to conclude and certify a contract of real estate sale abroad?

Yes, if it is a citizen of the Republic of Croatia then it is best to certify the contract with our diplomatic mission. If it is a foreign national then with the notarization of the purchase contract with a public notary, the Apostille of public document issued in that state is required.