First Steps in Land Trading in Croatia – Tips for Beginners

Trading land is different from trading houses or apartments in many aspects. Since it is about different types of real estate, trading in land requires a different approach and perspective.

What Does That Mean Trading the Land?

By trading land we consider purchase, exchange or selling land. Lands can be construction, agricultural and mental.

According to the data of the Ministry of Spatial Planning, Construction and State Property, in 2023 there were 23,728 sales of construction land, 32,240 sales of agricultural land and 2327 sales of land. Buy construction land and agricultural land records growth compared to the previous year while the sale of land recorded a decline.

The value of construction land in 2023 increased by 37% compared to the previous year, while the value of agricultural land value in the same time period increased by as much as 72%.

Key Factors to Consider Before Buying Land

Trading in land is less active than trading in other types of real estate. When buying houses or apartments, the buyer buys a finished product, while when buying land, the buyer buys an idea and potential. We adapt each land to its needs. It is a blank canvas with potential and vision we want to repurpose it for.

The first criterion we take into account when buying land is location or its position in relation to important contents and quality of access to the land. For example, land by the sea will be more in demand compared to the rest of the land.

Another important factor is zoning, i.e. check whether the land is included in the urban plan and what its purpose is (agricultural, construction, industrial, etc.). Attention should also be paid to topographical characteristics such as the slope of the terrain, the tendency to floods or landslides, and the like.

We mustn’t lose sight of checking your own, that is, confirmation that your own clean and arranged from the legal side.

Also, it is recommended to check the price of surrounding land with similar characteristics in order to get a picture of realistic prices in the target region. 

How to Research the Land Market in Croatia?

In Croatia, there are numerous portals specialized in advertising the land market, but we advise you to contact a local real estate agency where you can get more detailed information related to price movement or availability. A licensed real estate agent can certainly provide a different perspective on the potential of a particular piece of land.

Lands you can research through the cadastre, that is, by monitoring public data but also by physically visiting the area of ​​interest. Likewise, by contacting certain local self-government units, you can inquire about plans for urbanization.

In Croatia, there are numerous portals specialized in advertising the land market, however, we advise you to contact a local one real estate agency. If you are interested in land in Split or land in Dubrovnik, you can find current ads on our website.

Legal Aspects of Trading Land in Croatia

Croatian nationals can shop in Croatia without restrictions while foreign citizens must have a shopping permit to the land. 

According to the Agricultural Land Act, it has special protection of the Republic of Croatia and is an asset of special interest. Foreign citizens have no right to purchase agricultural land in Croatia, unless otherwise specified by international agreement. On the other hand, construction land is subject to urban conditions and rules of the spatial plan. Foreign citizens can buy construction land in Croatia based on the principle of reciprocity, i.e. if Croatian citizens can buy land in that land, it means that EU citizens can freely buy construction land in Croatia.

It is very important, before buying the land itself, to check the urban plan on which the land is marked and to check whether it is managed as agricultural, construction land or as a green zone. In the same way, spatial plans regulate the way land is used, and therefore every land must be harmonized with spatial plans.

It is not out of place to mention that when buying land in Croatia, you pay real estate transfer tax which is 3% of the purchase price. Every purchase and sale of land in Croatia must be certified by a notary public.

The Biggest Mistakes Beginners Make When Trading Land

Trading in land can be profitable and a good investment, however, frequent mistakes among beginners should be taken into account in order for the process itself to go smoothly.

Prior to the actual purchase, the land should be visited physically, because this way we can deepen or clarify our vision of what our purposes for the land are. Thus, we will easily visualize our project, whether it is fruit tree plantations on agricultural land or a holiday home on construction land.

They should take into account price movements of neighboring lands in order to get a realistic price of the land we want to buy and get an idea of ​​the movement of land prices in the surrounding area. This way we will avoid sometimes inflated prices by the seller.

For this reason, before buying, a thorough inspection of the terrain is recommended, otherwise there is a risk that the invested funds will be unnecessarily lost.

Also, it is important to consider the accessibility of the land, including the existing access road, and check availability of basic infrastructure services like electricity and water, especially if these utilities are key to the planned use of the land.

Last, but not least, it is necessary to clearly define the purpose of the land we plan to buy, and think about the type of project or idea we want to realize. In this way, we will be more precise in choosing the ideal land that suits our needs.

Conclusion

Land trading can be an extremely profitable investment, but due to its specificities, it requires a different approach compared to buying and selling other types of real estate. One of the key differences is that when buying land, we are not acquiring a finished product, but an investment that carries the potential and vision for a future project. Clearly defining the purpose of the land is of essential importance in order to find the plan aligned with the characteristics of the land itself and vice versa.

When trading land, it is necessary to take a detailed look at the specifics of the market, monitor price movements and consider the value of land in a certain area. By thoroughly assessing the location, urban zoning, legal status and other factors, we can avoid many common mistakes that beginners often make when buying land.