Innovative property investments
Investment Property in Croatia
Buying Guide
Buying Mechanism
Liberalising the legal framework
Traditionally land ownership laws in Croatia have been fairly restrictive and as such have discouraged large-scale foreign investment in the property market.
This is understandable as the country has so often been under the rule or, at the very least, the overbearing influence, of another state.
With the country slowly getting used to self-rule, the laws, customs and systems of owning and trading property are beginning to liberalise and open up to the idea of inward investment.
However, at present the system is complicated and all buyers should make sure they are taking independent, expert and professional legal advice at all stages of buying property in Croatia.
It is also essential to engage the services of someone to translate for you while in Croatia.
Officials, agents, developers and lawyers do not speak English as a matter of course, so make sure you know what is going on at all times.
Despite the fact that the laws governing foreign purchase of real estate have been liberalized in recent years, there are still a number of unique hurdles to overcome to get your Croatian property.
Buying as a private individual
Essentially, there are two routes buyers can take when buying in Croatia, each of which has its advantages and disadvantages.
It is possible to buy property in Croatia as a private individual, though taking this route means that your purchase must be approved by the Ministry of Foreign Affairs.
As an EU citizen, this should not pose too much of a problem, though some cases are rejected.
Be prepared for this process to take some time to complete - some buyers have had to wait up to 14 months for clearance, though this is rare.
Expect a delay of months rather than weeks for this process to run its course.
Buying through a company
The other option is to form a company in Croatia and buy your property through the company.
This sidesteps the need to obtain permission from the government, but leads to other complications.
There are certain tax implications to running a company in Croatia and it needs to have paperwork filed in accordance with corporate laws.
Which?
An agent, developer or lawyer will advise on the best course of action for individual cases, though as a rule of thumb it is better to buy as a private individual if the property is for personal use.
Buying a property for rental income or as a buy-to-let prospect will probably mean that forming a company to carry out the purchase is the best option.
Key facts
- The laws governing foreign purchase of real estate have been liberalized in recent years but there are still a number of hurdles to overcome
- Make sure you have a translator helping you throughout because most officials, agents, developers and lawyers do not speak English as a matter of course
- Buying as a private individual requires Ministry of Foreign Affairs approval but is the best option if the property is bought for personal use only
- Forming a company through which to buy your property avoids the need for Foreign Office approval but comes with tax implications and paperwork which make more sense for the buy-to-let purchaser
Downloadable Reports and Documents
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