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 from 0,5 to 1.5 per cent (according to our buyers’ experiences). 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 4 per cent, as of the January 2017.  (when was reduced from 5%). 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 Croatian kuna (HRK)
  • 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.

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

 

 

Invest in Croatia – why and how?

Invest in Croatia Article by INTERNATIONAL LIVING
Since 2000, Croatia has been one of Central Europe’s fastest growing economies, so investing in Croatia is naturally on the rise. Its main foreign trade partners are Italy and Germany.  Although Croatia’s history is ancient, on the economic front, it’s still pretty much a new country. It wasn’t even awarded investment grade rating until 1997.

Today, much further progress has been made toward implementing structural reforms, though the pace of reform has been slow. Nearly two-thirds of the Croatian economy has now been privatized, and around 90% of bank assets are privately owned, mostly by strategic foreign investors.

Invest in Different Sectors of the Croatian Economy

Around 60% of the country’s GDP is generated by the services sector: Tourism is absolutely vital for Croatia, as it’s this aspect of the service sector that creates the most income and employment. Tourism is Croatia’s largest source of foreign revenue, but it currently accounts for only a small segment of foreign direct investment. The main interest in investing in Croatia comes from Europeans. Italian banks have been major participants in banking privatization, and the Germans and Austrians have a stake in the banking sector, too. Other sectors attracting interest include manufacturing, cement, pharmaceuticals, power, and telecoms. Again, prominent investors come from Germany and Austria, as well as the Netherlands, Italy, and other European countries, including Slovenia and Hungary. It’s as well to bear all the caveats in mind, but many opportunities exist for foreign companies in a range of sectors. These include major infrastructure projects in railways, roads, power, water, oil, gas, telecommunications, tourism, shipbuilding, health care, medical equipment, consumer goods, and construction materials.

Setting up Business in Croatia

Croatia is an open market for foreign investors and those who come here to do business. Foreign investors are not subject to any special laws or regulations. You can carry out business under the same conditions as local business structures. In addition, foreign investors have some guarantees that aren’t available to domestic investors. The Croatian constitution provides for the free repatriation of profits or capital upon termination of an investment.

Investing in Tourism

With an unspoiled natural environment, a celebrated cultural and historical heritage, and so much emphasis on Croatia as a tourism destination, it’s worth investigating some of the investment possibilities offered in this sector.The Croatian Chamber of Economy suggests the future lies in “selective tourism.” The country certainly has great possibilities for anyone looking to carve out a niche market. Increasing numbers of holidaymakers are seeking vacations that involve more than simply lolling on a beach. Take the water: Croatia is perfect for nautical tourism, dive tourism, cruising on small boats, and fishing tourism. Inland, you could offer equestrian tourism, biking tourism, adventure tourism, ecotourism, or hunting tourism. (Regardless of your own views on the subject, many Italians regard Croatia as a great hunting location.) If you’re interested in a health tourism venture, where better than a country with so many natural spas? And a cookery school would fit in anywhere.

Predicting tourism trends is never easy, though, and deciding on a suitable investment will involve careful study. Where in Croatia do the tourists go? Why are some areas more popular than others? Are there developing trends? Some of these questions can be answered easily. The Croatian Bureau of Statistics publishes tourism figures on a regular basis. Data are available monthly, quarterly, and yearly. This information will certainly be helpful in showing you the most popular areas, and to a certain extent what type of accommodation tourists are staying in.

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.

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