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Property purchase

Negotiating the purchase process

Traditionally, land ownership laws in Croatia have been fairly restrictive and as such have discouraged large-scale foreign investment in the property market. With the country slowly getting used to self-rule, the systems have been liberalised and the country is more accepting of the idea of inward investment. However, there are still various pitfalls to avoid and so the buyer should take independent, professional advice at all stages of the purchase process.

Purchasing as an individual

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. For an EU citizen, this should not pose too much of a problem, though a minority of cases are rejected. There will usually be a delay of months rather than weeks for this process to run its course, and on some occasions buyers have had to wait up to 14 months for clearance. Non-residents cannot purchase more than one property in Croatia.

Purchasing as a company

Another option is to form a Croatian company through which to buy the property. The buyer does not need to obtain permission from the government, but there are certain tax implications to running a company in Croatia and the paperwork has to be filed in accordance with corporate laws.

Best way to buy

As a general rule it is better to buy as a private individual if the property is for personal use. Buying a property for rental income usually means that forming a company to carry out the purchase is the best option.

Completing the purchase

Once the sale has been agreed, there are usually three contract stages to complete the purchase. The reservation contract takes the property off the market. The preliminary contract allows the buyer to apply for permission to buy (if needed) in return for a 10% deposit. The final contract is exchanged when full payment is made and the deeds are registered with the land registry.

Purchase fees

The purchase fees involved in buying property in Croatia amount to around 9 – 14% of the property cost. The following is a general guide to these costs:

• Real estate transfer tax – payable at 5% of purchase price
• Legal fees – usually between 1 – 1.5%, plus 22% VAT
• Registration and other fees – usually amounts to between 0.01 – 0.05%
• Agent’s fees – usually between 3 – 6%, plus 22% VAT

The buyer and the seller share the costs of the agent’s fees, each paying between 3 – 6%.

Related items

Documents and Reports

	Croatia property investment report (437Kb)
	Croatia country guide (940Kb)
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Documents and Reports

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