Croatia’s stunning coastline, untouched nature, mild Mediterranean climate, and its safety and stability make it an attractive place for investing in Croatia. If you are considering buying property in Croatia, we are here to guide you through the necessary steps. Whether you are a Croatian citizen, an EU resident, or live outside the EU, there is a simple procedure you can follow to achieve your dream of owning property in Croatia:
The general procedure for buying real estate in Croatia is standardized and the same for Croatian citizens, EU members, and non-EU residents:
1. Property search (through a real estate agency or independently)
To quickly find the ideal property, hiring a real estate agency is highly recommended. Although this step involves a commission, the agency will ensure you find a property stress-free, while also ensuring you follow legal procedures during the purchase.
2. Planning the financial structure and preparing a budget
Early financial planning is crucial for a faster property purchase. Determine how much you are willing to spend and how you plan to finance the property – using your own funds, a mortgage, or a combination of both. Be sure to include additional costs such as taxes, notary fees, agency commissions, and ownership transfer costs. If you plan to finance the purchase with a mortgage, check your creditworthiness and prepare the necessary documentation in advance for the loan application.
3. Selecting properties based on your preferences
Once you have defined your budget, the next step is determining the type of property you want. At this stage, consider key factors such as price, property type, location, intended use, and any other specific requirements. If you have chosen a real estate agency, the agent will show you several options based on your preferences, from which you can choose the properties you wish to view.
4. Scheduling property viewings and organizing travel
This step is particularly important as it requires early planning. Viewing appointments should be arranged with your agent at least one week before your visit. Why is this necessary? In many cases, property owners do not live in the same location as the property, or the property is currently being rented out. These situations can make viewings difficult, so it is important to plan ahead. Proper scheduling helps ensure a smooth and efficient viewing experience without unnecessary delays.
5. Verification of ownership Once a property is found, it is crucial to request insight into the land registry and cadastral records to ensure there are no legal issues (e.g., mortgages, debts, or legal disputes).
6. Negotiating the property Since buyers may not have experience in negotiation, a real estate agent can be very helpful in this step to ensure the buyer is not deceived and does not end up paying a significantly higher price than the property’s actual value.
7. Signing the pre-contract: After the buyer verifies that the ownership is clear and agrees on the property price, the next step is signing the pre-contract – a document outlining the terms of the purchase (price, deadlines, payments, property details), with a down payment (deposit) that is usually 10% of the purchase price. It is common that if the buyer cancels the purchase, they lose the deposit, while if the seller cancels, they must return double the amount of the deposit.
8. Execution of the main sales contract: The main sales contract is signed before a public notary after all conditions from the pre-contract have been met. It finalizes the terms of the purchase and serves as a guarantee that the transaction is completed.
9. Payment of real estate transfer tax: After signing the main sales contract, the buyer must pay the real estate transfer tax, which amounts to 3% of the property’s value. Important note: Not everyone is obligated to pay this tax. If the property is less than 2 years old and the seller is a company/legal entity registered for VAT, the buyer is NOT obligated to pay the 3% property tax. However, if the seller is a private individual, regardless of the property’s age, the buyer must pay this tax.
11. Registration of ownership and transfer of utilities: The final step in purchasing real estate is the registration of the new owner in the land registry and the transfer of utilities (electricity, water, gas, etc.). It is also necessary to notify all relevant institutions and utility companies about the change in ownership in order to transfer all utility bills to the new owner.
If Croatian citizens decide to buy real estate in Croatia, whether for personal housing or as an investment, there are no restrictions that would hinder the process. The procedure for buying property is relatively straightforward, provided that standard procedures are followed and legal regulations are respected.
If you were wondering can foreigners buy real estate in Croatia and how? – the answer is yes, of course! However, the purchasing process for foreigners is somewhat more complex, and it is important to understand the differences between buying property for EU citizens and for those living outside the EU.
The procedure for purchasing real estate is the same for both EU citizens and Croatian citizens. As an EU citizen, you can buy a house, apartment, building land, or agricultural land in Croatia under the same procedure as Croatian citizens—without additional approvals or restrictions. To ensure compliance with all legal requirements, consulting a real estate agency is highly recommended. This way, you can be sure that all necessary documentation for the purchase of the property or land will be obtained in accordance with Croatian laws and procedures.
If you are a citizen of a country outside the EU, the procedure is somewhat more complex. There are differences you need to know:
BUYING REAL ESTATE IN CROATIA AS A NON-EU/EEA CITIZEN
If you are a citizen of a country outside the EU, the procedure is somewhat more complex. There are differences you need to know:
Some of the basic costs and taxes that you, as a buyer, will have to cover when buying real estate in Croatia are:
Real estate transfer tax: In Croatia, the standard rate for this tax is 3% and must be paid by all buyers, whether Croatian or foreign citizens, when purchasing a property older than two years and/or when the seller is a private individual. However, if buying a newly built property sold by a company registered for VAT, the buyer is not obligated to pay this tax.
Notary fee: Depending on the value of the property, a small percentage must be paid for the notarization of the contract by a public notary.
Land registry fee: The buyer must pay a certain amount, depending on the value of the property, for the registration of ownership in the land registry.
Agency commission and other costs: If you decide to use a real estate agency, a certain percentage must be paid for the agency’s services.
WHAT ARE THE DIFFERENCES IN BUYING REAL ESTATE IN CROATIA FOR FOREIGN AND DOMESTIC BUYERS?
If we summarize the differences in buying real estate for Croatian citizens and foreigners, we come to the following conclusions:
To ensure you are buying property in accordance with legal regulations, in a safe and verified manner, choose to work with a real estate agency that will manage the legal procedure and negotiate on your behalf.
There are several reasons why investing in real estate in Croatia is a good idea, and some of the key ones are:
Stable real estate market: The demand for real estate is high, and as a result, property prices are continuously rising. However, compared to real estate prices in other Western EU countries, prices in Croatia are still at a relatively lower level. All of the above is an additional reason why investing in real estate in Croatia is a good investment.
Tourism as the main national industry: Croatia is one of the most visited tourist destinations, which makes investing in the Croatian coast and islands the right choice for those looking for an investment and rental income, as well as for those who want to buy a property for their own vacation on the most beautiful coast in this part of Europe.
High quality of life: According to previous studies, life in Croatia is safe and stable, especially for foreigners who want to retire. Real estate on the Croatian islands is ideal for peaceful enjoyment and relaxation, far from the crowds and stress.
Every location in Croatia undoubtedly has its charm and rich history. However, if you are looking for properties whose value will grow long-term and which can serve as both a vacation spot and a source of income, then choosing the Croatian coast is the right option for you.
The Dalmatian Coast: The most interesting region of Croatia, with incredible cities and smaller settlements that exude culture, tradition, and rich history. The city of Split, as the second-largest city in Croatia and one of the UNESCO-protected cities, offers architecture and cultural monuments, as well as numerous locations for entertainment, relaxation, and vacation. Alongside it is the southernmost city of Dubrovnik, a filming location for Game of Thrones, known for its famous city walls and beautiful coastline.
The Istrian Coast: The most picturesque region in Croatia, known for its charming towns, crystal-clear sea, and rich cultural heritage. Cities like Pula, with its ancient Roman amphitheater, and Rovinj, with its romantic old town, are perfect examples of the region’s history and beauty. Istria offers a unique combination of Mediterranean lifestyle, beautiful beaches, and diverse culinary delights, especially its famous truffles and olive oils.
The Croatian Islands: Croatia has 1,244 islands, which are a perfect oasis for those seeking relaxation as well as entertainment, as some of them offer a wealth of amenities. Popular islands for investment, with incredible natural resources, architecture from different historical periods, and huge tourist potential, include Hvar, Brač, Korčula, Vis, Mljet, Pag, Cres, and many others.
If you are looking for a property on the most beautiful coast in Europe, contact us for assistance. By using our services, you can save time, money, and find the ideal property according to your preferences. We offer you:
Consultations and recommendations based on our extensive experience
Assistance in finding the perfect property
Organization of property viewings
Negotiation for properties to achieve the best price
Legal and administrative support.
And of course, we are here to help you with any questions or concerns you may have during and after the purchasing process.
