Buying Real Estate in Croatia for Foreign Buyers – Procedures and Conditions

With Croatia joining the European Union and the Eurozone, buying real estate for foreigners has become even more accessible and simpler than before. There is a significant growth in interest among foreign buyers and investors. Real estate in Croatia is attractive to foreigners due to the high quality of life, tourism potential, and stable market. Particularly sought after are investment properties and holiday homes, which allow buyers both personal use and income from renting.

In the following lines, we explain who can buy property in Croatia and how, what the conditions are, and what the purchase process looks like for foreigners.

Who can buy real estate in Croatia?

In principle, foreigners can buy real estate in Croatia, but the methods and conditions depend on the buyer’s citizenship. Regarding citizenship within the framework of purchase, we distinguish between EU citizens and citizens of other countries.

Buying real estate in Croatia for EU citizens

Citizens of all EU member states can buy real estate in Croatia under the same conditions as Croatian citizens. This means that foreigners can buy houses, apartments, commercial premises, and building land without special regulations. However, there are restrictions when it comes to buying agricultural land for foreigners. Foreign individuals generally cannot buy agricultural land in Croatia. Purchase is possible through a company registered in Croatia, in certain cases, or if the agricultural land is reclassified as building land.

Buying real estate in Croatia for non-EU citizens

Citizens of non-EU countries can buy real estate in Croatia but with more administrative steps. The purchase can be realized with the consent of the ministry, and approval for purchase is issued to citizens of those countries with which the Republic of Croatia has a reciprocity agreement. For example, although they are not in the EU, citizens of Serbia, Montenegro, and Bosnia and Herzegovina can buy real estate in Croatia in the same way that Croatian citizens have the right to buy real estate in those countries.

Real Estate Purchase Procedure for Foreign Buyers

The procedure for buying real estate for foreigners in Croatia is similar to that for domestic buyers, with a few extra administrative steps. Below is an overview of the main purchase phases for foreigners and what they can expect during the process.

Finding property and reservation

As with a domestic buyer, the first step for a foreign buyer is finding a suitable property. This step is ideal for hiring an agency and a professional real estate agent who knows the market and location best. After selecting the ideal property, a reservation agreement is often signed.

Preliminary contract and deposit

In the phase of signing the preliminary contract, the purchase conditions, method of payment, and deadlines are defined. The preliminary contract serves as a confirmation of the intention to purchase and is binding for both parties, buyers and sellers. In this phase, the buyer pays a deposit which usually amounts to 10% of the achieved purchase price. The deposit is security for both sides. If the buyer gives up the purchase, the seller keeps the entire amount of the deposit. If the seller gives up, they are obliged to return double the amount of the deposit to the buyer.

Purchase agreement

After all purchase conditions between the buyer and seller have been agreed upon, the main purchase agreement is signed. The date or deadline for concluding the preliminary contract is usually indicated in the preliminary contract. The signed contract requires notarization by a public notary. The main contract contains information about the price, property, and method of payment. A statement of transfer of ownership is attached to it. The main purchase agreement represents the legal basis for the transfer of ownership of the property.

Payment of taxes and fees for buyers

One of the most important and common questions for foreign real estate buyers in Croatia is tax payment. The buyer is obliged to pay the real estate transfer tax, which amounts to 3% of the estimated value of the property. In addition, additional costs may arise, such as notary costs, lawyer’s fees, land registry entry costs, and similar. More about taxes and other costs of buying real estate in Croatia can be found in our guide.

Registration of ownership

After the payment of the purchase price and settlement of necessary tax obligations, the next step is submitting an application for the registration of ownership in the land registry. For registration, the purchase agreement and other necessary documentation are attached. After registration, the buyer is officially and legally recorded as the owner of the property in Croatia.

How foreign buyers obtain OIB and open a bank account

The Personal Identification Number or OIB, foreigners must obtain to buy real estate in Croatia. It is issued by the competent tax administration. OIB is necessary for all legal and financial transactions in Croatia, and it will be visible in the title deed, along with the owner’s name, after registration. Foreigners often open bank accounts in Croatia, precisely for easier financial transactions.

Purchase procedure as an individual and through a company

When foreigners buy real estate as individuals, the procedure includes obtaining OIB, paying taxes, signing the purchase agreement, and registering in the land registry.

Another way to buy is by opening a company in Croatia. In that case, the property is owned by the Croatian legal entity, and the purchase procedure is the same as for domestic companies. The establishment of a company takes a maximum of two weeks.

Why do foreign buyers use an agency when buying real estate in Croatia?

Buying real estate in another country can often be administratively demanding, especially for foreign buyers who are not familiar with local laws and procedures. That is why many decide to use the help of a professional real estate agency that can guide them through the entire purchase process.

A real estate agency can help with finding a suitable property, checking ownership documentation, and organizing the complete buying and selling process. It can also mediate in communication with the public notary, lawyers, and other institutions and help in the process of registering ownership in the land registry. In this way, buying real estate in Croatia for foreigners becomes a safer, simpler, and more transparent process.

Conclusion

Buying real estate in Croatia for foreign buyers today is a clearly defined and relatively simple process, especially for citizens of the European Union. Although there are certain administrative steps, such as obtaining an OIB, paying taxes, or registering ownership in the land registry, with good preparation and expert support, the entire procedure can go quickly and safely.

Due to attractive locations, developed tourism, and a stable market, real estate in Croatia continues to attract a large number of foreign buyers and investors. Whether it is buying a holiday home, investment property, or permanent relocation, it is important to fully understand the legal conditions and steps of the purchase.

If you are considering buying real estate in Croatia and need expert help or additional information, contact our team for advice on buying real estate in Croatia. Our team will be happy to help you find the ideal property and safely guide you through the entire purchase process.