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Buying property in Croatia
Taxes & Law
If you are buying property in Croatia and have a Croatian certificate of citizenship or passport, the bureaucracy involved in the purchase is relatively straightforward. Since 2009, Croatia has committed to opening the real estate market to citizens of the European Union through the signing of the Stabilization and Association Agreement, so all EU citizens are treated equally to Croatian citizens when it comes to purchasing real estate. However, there are numerous regulations and laws in Croatia that govern the process of obtaining property ownership by foreign legal entities and individuals.
All other foreigners can also purchase property in Croatia, but they require approval from the Ministry of Justice and the Ministry of Foreign Affairs. Approval is available to citizens of countries with which the Republic of Croatia has a signed reciprocity agreement, and in exceptional cases, to other countries.
In summary, the process of purchasing property for foreign nationals outside the EU differs in that after signing the purchase contract, this contract, along with specific documentation, is submitted to the relevant ministry. If the ministry approves it, the property is registered. We’ll show you the steps involved in purchasing property in Croatia for foreign nationals.
How do I get a property in Croatia if I am an EU citizen?
Legal entities and natural persons from the EU can purchase property in Croatia on an equal basis with
Croatian nationals.
How do I get a property in Croatia if I am a citizen of a country outside the EU?
If you are a foreign national living outside the EU, you can purchase property in Croatia on a reciprocal basis. You must submit a written application to the Ministry of Justice and attach the following documents:
- Basis for the purchase of a property (purchase agreement, gift contract, etc.)
- Proof of ownership of the seller (extract from the land register, not older than 6 months)
- Certificate (not older than 6 months) from the county office that the property is located within the boundaries of the building district as provided for in the development plan
- Proof of nationality of the foreign buyer (photocopy of passport) or proof of legal entity status
- Power of attorney if an authorized representative exists
- Proof of payment of the 50 kuna fee for the application and 100 kuna for the decision to acquire the property. A fee of 20 kuna is required for each amendment to the application.
Are there any exceptions to this procedure?
How do I sell a property in Croatia?
How do I simplify the purchasing process?
This entire process can be simplified by engaging a real estate agency when selecting your desired property and authorizing them to handle the bureaucracy for you.
A detailed table of reciprocity between Croatia and other countries can be found on the official website of the Ministry of Justice (MARIS).
Obligation of the client (Principal)
- To conclude a brokerage agreement with the agency in written form.
- To inform the agent of all circumstances that are important for the exercise of the brokerage and to present the exact data of the property, if available, to provide the agent with the location, building or use permit for the property subject to the contract for inspection, as well as to provide the agent with the evidence of the fulfillment of obligations towards third parties.
To provide the agent with access to the documents proving his ownership of the property or any other real right to the property that is the subject of the contract, as well as to inform the agent of all registered and unregistered encumbrances that exist on this property. - To ensure that the agent and third parties interested in concluding the brokered transaction are able to inspect the property.’
- To provide the agent with access to the documents proving his ownership of the property or any other real right to the property that is the subject of the contract, as well as to inform the agent of all registered and unregistered encumbrances that exist on this property.
- To inform the agent about all important data about the property sought, which includes in particular the description of the property and the price.
- After conclusion of the brokered legal transaction or preliminary contract, according to which one has undertaken to conclude the brokered legal transaction, if the broker and client have agreed that the right to payment of the brokerage fee is already acquired upon conclusion of the preliminary contract, pay the brokerage fee to the broker, unless otherwise agreed.
- If expressly agreed, the agent will be reimbursed for costs incurred during the mediation which exceed the usual mediation costs.
- Inform the agent in writing of any changes related to the transaction for which the agent has been authorized, and in particular of any changes related to the property ownership.
- The client is liable for damages if he has not acted in good faith, if he has acted fraudulently, if he has concealed or provided false information that is important for the brokerage transaction with the aim of concluding a legal transaction. He is therefore obliged to reimburse all costs incurred during the brokerage, which cannot be higher than the brokerage fee for the brokered transaction.
- Agency services: 3% plus VAT (not including notary and attorney services, which add approximately 1%).
- Please note that 5% property tax is payable on the real estate price.
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