Starting from date 01.02.2009 the Croatian government has removed all of its restrictions on citizens from the European Union buying property in the Republic of Croatia. So - the new law has ensured the same treatment as compared to Croatians. No more special procedures, waiting lists...

One of the basic preconditions for foreigners to acquire property in Croatia is that of mutuality / reciprocity between Croatia and the country whose national acquires real estate, meaning that Croatia makes the treatment of foreigners conditional upon that country's treatment of her nationals.

According the information from the Ministry of Foreign Affairs the existence of reciprocity with the majority of countries has been confirmed, including most of the countries of the USA, Canada, Australia, Norway etc. You can see list of countries - please click HERE...

Foreign citizens are entitled to purchase real estates in Croatia, but after prior consent issued by the Ministry of justice. These statements on consent are issued to citizens of those countries Croatia signed a contract on reciprocity with and in extraordinary cases, to citizens of other countries as well.
 

Better and faster alternative is the company route. It also offers some tax and other benefits including setting renovation costs against any income received on renting the property out. Foreign citizens that establish, or already have an established company in Croatia, can purchase real estates on behalf of that company. Our "at large" staff needs maximum 2 weeks to establish for you an Croatian company (in most cases Ltd - limited company) - of course - after all preconditions are met. This can be done together with you - if you are present in Croatia - but also whilst you are not in Croatia. In that case we'll need your written power of attorney.

We charge a fee for this service of company setup - €5,000 - which includes the public notary's fees, certified court interpreters translations, taxes and courier services. This ammount also includes the foundation capital of HRK20,000 (equivalent to c.€2,800). It belongs to you and it can be withdrawn the next day after the company has been established.

It is possible to conclude and verify a sales contract abroad. In such a case it is the best to have it verified in a Croatian embassy or consulate. If you verify such a contract before a public notary, then this verification has to be translated into Croatian by an appointed courts interpreter. Foreign natural or legal persons can without any problems sell real estates in Croatia.

A property tax of 5% based on the market value of the property will become payable approximately 3 or 4 weeks after completion and it is usually best to provide these funds to your lawyer at the same time as completion. Where property is held in an individuals name and later sold - a tax liability of  35% is crystallized, unless the property is held for more than three years after which time there is currently no tax liability. For detailed tax information we recommend to take advice from an accountant that is qualified to advice in Croatia. We can recommend one if you contact us.

After conclusion of the sales contract - the customer is obliged to register the purchase at the authorized tax authority  within 30 days from the day of conclusion of the contract. Public notaries do also submit one copy of the sales contract to the tax authorities. The customer is obliged to pay respective real estate purchase tax within 15 days from the day of reception of the decision received from the tax authorities on the exact tax amount.  The tax is to be paid by bank or post office money transfer. The amount is converted into Kuna at the middle exchange rate by the National bank of Croatia at the day of payment.

Down-payment to be paid at the conclusion of sales pre-contract or sales contract - is usually 10% of the sales price or different if agreed so between the contractual parties.

If you are buying a real estate in Croatia, you can get a mortgage loan. It does not matter if you are buying through a company or as a private person, or if you are foreigner or resident. The ownership has to be clean and there has to be a building permission if you intend to build a new building. You can get mortgages about 30- 50% of the price. Of course - the bank will check your income statements (etc - according to bank's policies).

See here full listing of visa requirements (for citizens of countries that need visa).

A foreign national can stay up to three months in Croatia without any complications. Following this, it is necessary to obtain a residence permit. Having a yacht moored in a Croatian marina, renting or owning a property in Croatia is sufficient to obtain a residence permit. This does not mean that one is automatically deemed a tax resident. A person is resident based on physical presence in Croatia if he stays during a period of at least 183 days. Short absences are not considered as breaking this period of stay. The period can include two calendar years. One would not be considered resident if the stay is exclusively for the purpose of a visit, vacation, therapy or for the purpose of satisfying similar personal needs, providing it does not last longer than one year.

A person is resident based on maintaining a home in Croatia if he has accommodation at his exclusive and continuous disposal in Croatia for 183 days and if it can be concluded from his circumstances that he will keep and use that accommodation. The length of stay in the accommodation is not important nor whether the accommodation is owned or rented. This provision of deemed residence is very attractive for foreigners who wish to maintain legal residence in Croatia without having to physically be there for any minimum length of time.

If a foreign national wishes to be a tax resident based on maintaining a home in Croatia, he needs to have accommodation at his exclusive and continuous disposal for at least 183 days. If he wishes to be a tax resident based on physical presence in Croatia, he must stay continuously during a period of at least 183 days for business, or more than one year for the purpose of tourism, health or similar personal needs.

A buying process can be a very time consuming. Every step can be undertaken personaly. We advice all of our clients to use our services - because we are domestic people, we are in this business, we know how it functions. We are together with you at all stages of your property purchase in Croatia - as well as afterwards.