Can foreign nationals buy property in Croatia?
Yes. Buying a property in Croatia is almost as easy as any other country but if it is not done properly then disputes with the authorities are much more difficult to resolve.
What advantages are there in establishing a Croatian company to buy my house?
The main advantage is that it should be quicker (Croatian companies do not need to get permission from the Ministry of Foreign Affairs). The disadvantages are the costs associated with setting up a company, maintaining it and complying with all Croatian company regulations.
How do I go about buying a property?
Find yourself an area you like and a property that suits your requirements and budget. It is a good idea at this stage to open up a bank account so that monies can be transferred quickly and easily once you are ready. Opening a personal bank account is free and no money needs to be paid in at this time, it takes about an hour to do and we can help you with this.
Once you find a suitable property you need to allow for some additional costs before making a final decision or putting forward an offer on a property:
5% Real Estate property tax
Our agency fees (3% plus vat)
Notaries fees and disbursements of around €250
Solicitors fees generally tend to be around €1000
If you decide to purchase a property in Croatia it is essential to seek professional advice, just as you would in the UK. We will introduce you to our recommended independent legal team but you are completely free to use your own if you prefer.
What does “clean title” mean, when considering buying a property in Croatia?
Croatia has seen many changes during the past 100 years. Since being part of the old Austro-Hungarian Empire it has experienced 2 world wars, a communist regime and a regional war before emerging in the last decade of the 20th century as an independent and rapidly developing European country. All of these changes have naturally brought with them a host of problems relating to land and property ownership.
Some properties were confiscated by the communists (and now their original owners may want them back), often transfer of ownership was not registered (to avoid taxes), or property was inherited by all the children in a family, and every one of them must agree to sell.
“Clean title” means you know who owns the house (hopefully not more than one or two people), that their names are on the deeds and the ownership is registered, the property has a building permit (a formality for those built before 1968) and is accurately entered on the Cadastral map. Your appointed property agents are legally obliged to check all documentation of the specified property that you are interested in.
Who will help me with the building legislation and other legal requirements?
We have access to local English-speaking lawyers
How would I pay my household bills ?
The easiest way to pay utility bills (water, electric, phone etc.) is through a Croatian bank account. We would be happy to assist or advise you in setting up a bank account.
There was a war in Croatia, is the country now stable?
Yes! The war ended in 1995 and, since then Croatia has been working hard to encourage foreign investment and to strengthen trade and commercial relations with western countries. In 2000 Croatia joined the NATO Partnership for Peace Programme and also became a full member of the World Trade Organisation. In 2003 Croatia applied to join the EU and there are hopes this will happen in 2013.