Buying real estate in Croatia through a company

A foreign legal or natural person can establish a private company registered in Croatia, ie a d.o.o., and buy a real estate whose owner will be exactly that Croatian company. This method of purchase is most often chosen by persons who are citizens of countries that are not members of the European Union, which means that they do not have reciprocity with the Republic of Croatia. For these reasons, buying real estate for them is a somewhat more complicated and time-consuming process, which can be avoided by opening a Croatian company. We also recommend this method if the builder of the building is in the VAT system (in the case when you were entitled to a VAT refund included in the price of the property).

The establishment of a private company is a process that takes 14 days and includes the engagement of its own lawyer, notary public (circulation of around HRK 5,000) and the Commercial Court. The share capital in the amount of HRK 20,000 must be paid in cash to the account of the established company, and a certificate of the payment is required to be attached when registrating the company. The registration address should be the existing address and contact service of that legal entity. Like the others, the foreign founder should determine the business activities to be registered and appoint the director as the one who will represent the legal entity. It can be himself, another foreigner or a Croatian citizen.

If he plans to work for the company, he will also need a work permit, which he will obtain in the same place. If there are no such interests, but rather acting as an investor, the foreigner can also isolate this part of the procedure.

The cost of running a company in Croatia is from 750 to 2,500 kuna per month, depending on the company's operations, and what is best advised with bookkeeping. When a firm buys a property, the contract is deposited in court and sent to the land registry office for the new owner to register. As with most countries, here d.o.o. is not subject to VAT, but instead pays income tax in the amount of 20%. If a client buys a company that owns one property, it does not need to pay real estate sales tax.

For all additional information, as well as to guide the entire process of opening a company in the Republic of Croatia, we recommend hiring your own tax advisor and law firm.


Added: 15.11.2020.


Broker real estate agency

Tena Sladoljev is a social and active person with a strong sense of aesthetics. Her clients come first and she is organized, up-to-date, and thorough in her work. She always finds the best solutions for her clients because she truly enjoys the work she does, and the primary area of her activity is the Dalmatian coast, with its center in the city of Split.