Things to Consider Before Buying Property in Croatia

Croatia has been one of the favorite real estate destinations that attract foreign investors. Thanks to its well-preserved natural beauty and good connectivity, it makes for a great investment in either residential or commercial. If you too are planning to buy a Croatian property, here are a few things that you should know about.

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Property ownership by foreign nationals

Foreign nationals should be aware of some rules and regulations before proceeding to buy property in Croatia.
All citizens (as natural persons) of countries which are a part of the European Union are allowed to buy property same as Croatian citizens. The citizens of other countries, outside the EU, if they are a resident of the country that has a reciprocity agreement with Croatia, they are eligible to acquire real estate here with the approval of the Ministry of Foreign Affairs. List of countries with reciprocity agreement with Croatia expands constantly so best way is to check with us for latest information. Further, foreigners are prohibited from buying forest or agricultural land or any property which comes under the ambit of cultural monument. 


Permission from the Ministry of Foreign Affairs is mandatory for foreign nationals to buy property in Croatia. No sale can be finalized without this consent. Few months goes into this process during which the ministry check the foreign laws to ensure that the reciprocity agreement exists. When permission is granted sale can be finalized and buyers can register title on themselves and pay property tax (4%).
Only way foreigners can buy real estates and forest or agricultural land without restrictions is to found or if they already have company founded in Croatia and then purchase property as a company ownership. Company in Croatia can be established by citizens of all countries. This way there is no need to wait for approval of the Ministry of Foreign Affairs as Croatian company has equal rights as Croatian legal entities no matter citizenship of founder and owner.

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Property acquisition process

●    Pre-contract agreement: Once the pre-agreement contract between a buyer and a seller is ready, the buyer has to pay usually 10% of the selling price. We check the legal ownership of the property before making a pre-contract agreement.
●    If needed, application is submitted to the Ministry of Foreign Affairs along with the following documents purchase agreement, proof of ownership from the seller, certification that the property is within the boundaries of the construction zone envisaged in the urban development plan, buyer’s proof of citizenship, seller’s proof of citizenship, and power of attorney.
●    The copy of the binding contract signed by a notary is submitted for Land Registry. Next, the details of the contract must be registered in the Municipal Cadastral Department’s Land Books and payment of purchase tax must be made.
●    Tax payment of 4% is not required for new built properties bought first time directly from investor.

Points to Remember

Keep in mind that your down payment will be returned if the buyer fails to fulfill the terms of the pre-contract stage. For the benefit of the customer, Croatian government mandates sellers to pay double the amount of the deposit if they fail to fulfill the terms of the agreement.


Added: 07.03.2018.


Broker real estate agency

Zrinka Buljan is a graduate jurist who has perfectly found herself in the dynamics of the real estate market atmosphere. With an open and tolerant attitude to work she creates the opportunity to be an ambitious and clear girl with intelligent decisions and quick reactions, always offering a number of different solutions. Zrinka enjoys her daily activities and feels that a good job is a done job.