Buying property in Croatia – cost and fees

Why buy property in Croatia?

Crystal Clear Water – Just One of the Reasons

Buying property in Croatia – cost and fees

Croatia – beautiful country to live or retire or just to enjoy holidays

Croatia has much to offer for the property buyer, including an enormous variety of landscapes, a wide choice of unique cities, towns and villages, a great climate, wonderful beaches and crystal clear sea.

Its popularity really took off in 2001, and it promptly became one of the countries that were part of the ‘emerging market’ phenomenon. It opened up to foreign investors, who quickly took advantage of the inexpensive properties that were to be found throughout the country.

Anyone who wants ease of access from the rest of Europe, the clear waters of the Adriatic and an ever-improving infrastructure has got to visit Croatia. Croatia also officially became the 28th member state of the European Union in July, 2013. This is a result of the impressive progress made by the country as an independent state, and definitely helps to promote Croatia tourism-wise.

In addition, as of February 2009, the property market in Croatia became more open to European Union citizens who are now able to buy on the same terms as local Croats (except agricultural land and land in national parks). This burning of red tape in the buying process is not only speeding up the property buying procedure, it also encourage more buyers to purchase in Croatia with confidence.

To read more about the beauties of Croatia, please visit our About Croatia Blog Section.

Buying a property

Property buying in Croatia for non-EU citizens  is governed by the principle of reciprocity meaning the right of an individual to buy property there is on the condition that Croatian nationals are permitted to buy property in the origin country of the purchaser. For EU citizens rule is that they buy in Croatia same way as Croatians, except agricultural land. If foreigner want to buy agricultural land, company has to be formed which will buy agricultural land.

As in all property transactions, the buyer should always use the services of an independent lawyer who acts solely for them. We are glad to recommend experienced and reliable solicitor. It is also essential that the lawyer should speak both Croatian and English fluently.

It is important for the lawyer to check that the property’s title is clean. Because Croatian families traditionally handed properties down from father to son for several generations, in some cases the paperwork is either incorrect or non-existent. Our agency checks all property documents to be sure that status and title are clean and without risk for buyer to purchase it.

Getting a survey done is somewhat unusual in Croatia, but it can be arranged through the agency or civil engineer or architect whom our agency can recommend. This service, with a proper translation, should cost somewhere around €500 should you require it.

There are two main routes for the purchase of property in Croatia – as a private individual or through a company structure that you set up yourself. There are advantages and disadvantages to both methods, and the best solution will be different for each specific case. We are experienced and professional real estate agency and will advise you of the best solution for each individual circumstance.

All steps in the buying process are described in details in our FAQ.

Buying Property in Croatia: Costs & Fees

  • Estate agents charge  3 per cent of the property’s sale price
  • Lawyers charge around 1.5 per cent (Lawyer which my agency recommend will charge about 0,5%, read more under FAQ). This will usually include the Land Registry ownership registration and the preparation of the purchase contract
  • Permission from the Ministry of Justice for a foreign national to acquire property costs around 70 kuna (approximately 10 EUR)
  • The notary’s fee and that of the translator (officially required) total approximately 500 kuna (around 70 EUR)
  • The fee charged by the Land Registrar is about 250 kuna (approximately 35 EUR). Check with your lawyer whether this has been included in his or her fee
  • Property transfer tax is currently set at 5 per cent, as of the January 2017. should be reduced to 4%. This is paid by the buyer. Once the transaction has been completed, the change of ownership should be registered within 30 days. The tax can be paid by money transfer, and is then changed into kuna
  • Registering Croatian company (if buying through the company) – public notary fee is about 500 EUR, founding capital at company registration is 2800 EUR which you can take out of the company after registration, monthly fee for a bookkeeper is about 150 eur, yearly company tax is about 150 eur.

VAT (PDV in Croatia) is currently 25% and payable only on the value of a newly constructed building or a resale for which the VAT was already paid, if disposed of by a business VAT payer. It is also charged on the services provided by both real estate agents and legal advisers.

Real Estate Mortgages

The finance industry in Croatia was subject to a quite a large amount of change. Unfortunately Croatian banks have not recognized foreigner buyers as perspective clients, so only few banks will consider foreigner for approving bank loan to purchase property and with very difficult conditions to be fulfilled by the foreign buyer. It is our recommendation for a foreign buyers to look for suitable bank loan in the native country. Number of our German buyers were approved loans from the German banks to purchase property in Croatia.

CLIENTS TESTIMONIALS AND PRESS

Beach front luxury holiday villa Brac

Beach front luxury holiday villa Brac

Clients testimonials and press –  At Luxury Croatia Real Estate, our mission is to provide quality above our Clients’ expectations. We are committed to the notion that quality matters and will never stop striving for perfection!-kl

LUXURY CROATIA TEAM will answer your request with exceptional customer care.

Our team is providing you with a personal service wherever you are in the world. We are pleased to answer  all your requests , our  team is available 24 hours a day, 365 days a year, offering an impeccable service whilst sharing specialist knowledge and expertise. We have an unparalleled offer of properties for sale as well as most luxury Croatian villas for rent. We are ready to find your best buy/rent option.
We hire only the best staff, ensuring that they are all highly trained and skilled to guarantee you receive an outstanding quality of service.

CLIENTS  TESTIMONIALS

Find out what our clients say about our work

Dorota Piernatzka, Poland, house buyer: after 2 years of intensive search for second home in Croatia, finaly we were offered by LuxuryCroatia team the best properties, we bought sea front house near Makarska. We were so happy. LuxuryCroatia team helped us to find renovation company, and now we rent house with LuxuryCroatia travel agency and we have nice income from rental!

Oleg Dobrensky, Russia, villa buyer: I was intensively searching to buy villa on Brac island, on the seafront with pool and 4 bedrooms. I bought villa from Luxury Croatia offer, because they only had exclusive sale to this villa, which was off market sales. I needed confidential partner, and found it in Luxury Croatia team, and they manage my villa all year round and rent it while Im not using it. I appreciate your work LuxuryCroatia!

Andreas Gratentholm, Sweden, rental owner: I was pleased with work of Luxury Croatia team from the first day after I bought my beach front house in Dalmatia and made contract for property management and rental of my house. Luxury Croatia team cleans the house and meets guests, takes care of my house perfectly! They helped me with furnishing, gardening, implementing internet and cable tv. They take care of guests, I collect payments, this is soo good! Thanks to LuxuryCroatia team!

Mike Stothard, England, buyer of house, island of Silba: Thank you for help! Thank you for assistance and guidance through the buying process! Thanks for driving me hundreds of kilometers to my accommodation after you picked me up at the ferry port. You are reliable and very professional! Your information and advices were very helpful and whole process was so quick and simple thanks to you! We were very happy to purchase our Silba house through your agency, therefore we decided to continue our cooperation with you through the property management of our house.

Kali, Lynda Pearl, Mark McClure, Kyle Aduskevich and 40 more US navy officers from USS Aircraft carrier Harry Truman anchored in front of Split  for a week in December 2015:

The dinner was fantastic! It was an amazing time for the entire squadron and we greatly appreciate your suggestion and coordination. Everyone is very excited for the tour tomorrow (wine tasting and Trogir sightseeing). Thank you so much again for all the coordination, for organizing our stay in luxury apartments on the beach in Split and for organizing our trips and dinners in separated part of restaurant where we were able to have privacy, thanks for organizing our spa and wellness treatments!

If there is any way we can rate/recommend/pass on your information please let us know. Your suggestions and help have made this trip perfect and we are very grateful.

Inge Maria Wold Fabic, partner: Adriatic Traveller & Luxury Croatia Property offer a collection of the finest luxury villas with pool for tourists dreaming of their perfect holiday in Croatia. Spacious luxury villas where you can relax by the pool and enjoy your privacy, the company of your family, friends and business partners.

Director Marija Bojcic and her staff have the knowledge and experience, service mind and discretion to provide their clients with a wide array of services to make their dream holiday come true, and there is practically no limit for what they can do for you, from arranging pre-arrival shopping service, yacht and boat charters, to gourmet food and wine supply – and everything between. Marija Bojcic and Adriatic Traveller & Luxury Croatia Property have my warmest recommendations.

Beti Vidjak, partner: Finding a dream home, for the right price, in a great area is not a small thing, especially if you are a foreigner in a beautiful country. It is my opinion that Marija will be your best choice as an agent to find for you a dream house in Croatia. Her knowledge, professionalism, hard work and friendliness will be invaluable in getting you through the process of buying. As a business partner I’ve saw her ideas developing from scratch to a real business.

Where to find more about us:

Please find us active on Linkedin: LuxuryCroatia.net 

Our Facebook page: LuxuryCroatia.net on Facebook

Find us at Slideshare with this useful presentation: Croatia among top retirement destinations by Forbes magazine.

Our Twitter page: twitter.com/LuxuryCroatia

Our Pinterest page: https://www.pinterest.co.uk/luxurycroatia/

Press Interviews in local and international print and internet media:

We are listed on UK The Telegraph related to real estate market sales of luxury villas on top Croatian locations.
The most exclusive villas for rent in Croatia by LuxuryCroatia.net in Croatian magazine specialized in home and decor:  Dom and Design , in Croatian newspapers, section of Travel:  Jutarnji list printed daily newspapers, and on the Croatian internet lifestyle portal:  PortalOko
The most exclusive villas in Dubrovnik by LuxuryCroatia.net in Croatian local portal Dubrovacki Vjesnik.
Real estate market and how to buy in Croatia – interview in South Africa’s luxury Real Estate magazine.

We always fight for our rights and rights of our clients against laws which are not fair or cause earthquakes on the real estate market, our complain on some articles in the  Law of real estates energy certification was published in business magazine Poslovni.hr (on the article is picture of the Minister whose law we complained about).

 

Why Should You Consider Croatia?

House for sale in center of Pirovac, Sibenik area (8)

Why Should You Consider Croatia?

Why Should You Consider Croatia? A flotilla of dazzling white yachts glides into a sheltered cove. The put-put-put of their motors is no competition for the evening choir of cicadas. The whiteness of the yachts seems startling, a vivid contrast to the sea’s hypnotic palette of blues and turquoises…the deep orange roof tiles of a thousand-year-old town…the green pine woods beyond.
We could not be more passionate about Croatia, our latest discovery. Although many people know very little about it, this small maritime country at the heart of Europe offers you the chance to discover the closest thing to the Mediterranean of years gone by.
Unspoiled, relaxed, beautiful, and safe, Croatia is one of Europe’s loveliest treasures. Everything a discriminating visitor–or homebuyer–is looking for can be found right here: crystal-clear seas, timeless fishing villages and unspoiled beaches, Roman ruins, a pristine lake district, and medieval walled cities.

Every twist and turn of the coastline serves up grandstand views of secret coves, little harbors, and calm turquoise waters. Out in the Adriatic Sea, a galaxy of islands–1,185 of them–shimmer like a cache of emeralds.

The French legend Jacques Cousteau, esteemed biologist and oceanographer, once described Croatia’s waters as the cleanest and clearest in the world. When you come here, you simply must take a boat and go out into the Adriatic–you’ll be astounded at how far down into the depths you can see.

Adriatic property prices are what you could find on the Mediterranean a generation or so ago… Although prices have been increasing in recent years, it’s still not too late to buy. Prices are way below the European average.

When compared with many other European vacation destinations, real estate agents are right in claiming that the Dalmatian coastline still has significant growth potential. It’s hardly surprising, then, that this little gem of a country is experiencing something of an investor feeding frenzy. Now could be an ideal time to snap up a Croatian property, as it seems most unlikely that prices will fall. Especially since Croatia accessed to the European Union in 2013.

 Why Should You Consider Croatia? One of our French buyers, who purchased seafront house on the cliff near Makarska, with mountains behind it, explained why he did it. Because:

  1. price of the house was affordable (375.000 EUR)
  2. this area reminded him of the Cote D’Azure, but he was not able to buy house on the sea there, because it would cost over 1 million EUR.

 

Live in Croatia: Countless Benefits

Live in Croatia

There are Countless Benefits of Living in Croatia

Article by the INTERNATIONAL LIVING Magazine

Live in Croatia: Countless Benefits Many expats choose to live in Croatia because of its beautiful coastline

If you have decided to live in Croatia, then it is important when buying a property to always be sure of your rights and title by going through a real estate agent. Because of foreigners’ increasing interest in Croatian property, most agents here are now effectively offering a one-stop-shop service with established notary, attorney, and builder contacts. Of course, it is important to establish an agent’s reputation before you commit yourself.

Education

Education in Croatia is free, and is compulsory between the ages of 7 and 15. Many children start their education at the age of 3, at pre-school, which lasts until they’re 6. Elementary school lasts for eight years, followed by four years of secondary school. At this level, schools are divided into high school, technical, specialized, and mixed curriculum schools. After completing high school, the brightest students go on to one of the country’s four universities in Zagreb, Rijeka, Split, or Osijek. Universities also offer free education, with particular emphasis on the sciences, medicine, and engineering. International schools are few, though there is the American International School of Zagreb, an independent, co-educational day school offering an educational program from kindergarten through grade 12. The curriculum is that of U.S. public schools, with instruction in English.

Learning the Language

Many enjoy the quiet lifestyle associated with living in Croatia

Live in Croatia: Countless Benefits If you have chosen to live in Croatia, then you will most likely want to learn to speak a little of the local language. In order to help you with that, we’ll be happy to provide you with a list of the best croatian language learning schools. To get you started here’s a List of Five Useful Words: nekretnina: real estate; prodaja: sale; dozvola: permission; najam: rent; hvala: thank you.

Residency Permits for Living in Croatia

Live in Croatia: Countless Benefits If you do decide you’d like to live in Croatia, you’ll need to apply for a temporary residency permit. You’ll need several official documents and a stated reason for wanting to live in Croatia. This can be related to an investment, a business, family, employment, study, or real estate rental or purchase. Having a yacht moored in a Croatian marina also qualifies as a reason for being granted a residency permit.

To obtain a temporary residence permit, you need to apply in person at the local Ministry of the Interior (Ministartsvo Unutarnjih Poslova) office. A temporary residence permit is valid for one year and can be renewed. You will not be able to get permanent residency status in Croatia until you’ve held a temporary residence permit for five years. Again, foreign nationals have to apply for permanent residence with the MUP. Apart from five years of temporary residence, the only other ways you can gain permanent residency are through marriage to a Croatian citizen for at least three years, humanitarian reasons, or at the discretion of the Croatian government.

Project Management Services – if you plan to build or renovate home in Croatia

Gorgeous Premium Holiday Villa, Trogir AreaProject Management Services – If you plan to buy land for building a house according to your ideas, we have the solution!

Our team of experienced and successful architects, civil engineers, contractors and construction companies will help your idea becomes a reality.
We will be your project manager who will monitor the implementation of the project, from the first meeting with the architect where you will present your own idea of what kind of house you want, until the last day, completing the construction of house and furnishing according to your selection. We are going to gather all the necessary documents, to take care of all the details, organise and supervise all works and processes, organise the purchase of all necessary items, from building materials to furniture of your choice.
We will care about your house also after completion of the works, and  put on rental market to tourists so you will get extra income. Also we make estimation of rental prices which you can get on the tourist market for renting your house. Our estimations are based on our experience as tourism agency specialised in villas rentals on the coast and islands of Croatia.

Renovation works could be also very complex and long timeline. We are here on the sight to manage and organise all reconstruction and renovation works, again with our team of architects, engineers, construction companies specialised in traditional and contemporary modern design of home.

Here is example of the house renovation which took place in 2015.

House before renovation:

house-10 house-15 house-22 house-36

Here is house after renovation:

13343015_1129943543747256_1651141634623653184_n img_2278 img_2287 img_2288 img_2291 img_2295 img_2299 img_2297

 

 

Standard Property Management Package

Standard Croatian Property Management Service Package

Standard Property Management Package

Standard Property Management Package – you’re looking for some more functionality out of the package, this is what we have prepared,  an extremely well cost-effective package for you.

It has the same idea of affordable Croatian property management service but with slightly more options added for maximum satisfaction.

 

If you require a more customised service feel free to contact us anytime!

 

STANDARD PACKAGE SERVICES PRICE LIST

Standard package services price list – our property management services includes:

  1. Key holding: keeping your key safe and providing access to the property to your guests on your written confirmation
  2. Post collection, basic translation and forwarding
  3. Inspection for major damage (exterior and interior), once a month
  4. Arranging repairs if needed
  5. Payment arrangements for your bills
  6. Testing appliances and water system
  7. Watering  plants, weeding and tidying common areas.
  8. Monthly report on your property via E-mail, detailing the inspections that have been carried out, with interior and exterior pictures enclosed

 

Price: €200/month

 

First Property Case Study Article Due Friday, August 23rd

Croatia Property Buying Procedure Case Study

Learn From the New Owners of Croatian Real Estate

First Property Case Study Article

Dear Clients and Visitors,

Having in mind that most of you have not yet had any experience buying, selling or renting Croatia real estate, we, the Luxury Croatia Real Esatate Agency team, have decided to post an interesting property Case Study once a month!

These Case Study Articles have a goal of introducing a specific experience one of our previous customers had had, explaining all the steps involved in the process, from the first introduction to the final act of handing over the keys.

Our First Case Study is scheduled on August 23rd and we’ll try hard to deliver one of the most specific and honest Croatian property buying experiences available.

Transparency, authority and trustworthiness in the Croatian Real Estate business is our main forte and this is only one of the ways we go about accomplishing that.

Having that in mind, if you want to be alerted when each of our interesting and useful Case Study articles is published, you should subscribe to our Weekly Newsletter below.

We promise not to send you any spam.