Taxes & Law

If you are buying a property in Croatia and have a Croatian residence permit or passport, the bureaucracy involved in the purchase is relatively simple. Since 2009, by signing the Stabilisation and Association Agreement, Croatia has taken on the obligation of opening the property market to European Union citizens, so that all EU nationals are on an equal footing with Croatian nationals when it comes to buying property. However, there are a number of regulations and laws in Croatia that govern the process of obtaining property ownership by foreign legal and natural persons.

This means that all other foreigners can also buy property in Croatia, but require authorisation from the Ministry of Justice and the Ministry of Foreign Affairs. Nationals of countries with which the Republic of Croatia has a signed reciprocity agreement and, in exceptional cases, others can also obtain this authorisation.

To summarise, the procedure for buying a property for foreign nationals outside the EU differs in that after signing the purchase contract, this contract is sent to the relevant ministry together with certain documentation. If the ministry gives its approval, the property is then registered. We will show you the steps involved in buying a property in Croatia for foreign nationals.

How do I get a property in Croatia if I am an EU national?

Legal and natural persons from the EU buy property in Croatia on an equal footing with Croatian nationals.

How do I get a property in Croatia if I am a citizen of a country outside the EU?

If you are a foreign national who does not live in the territory of the EU, you can buy a property in Croatia according to the principle of reciprocity. It is necessary to submit a written application to the Ministry of Justice and enclose the following documents with the application:

1. Basis for the purchase of a property (purchase agreement, gift agreement, etc.)
2. Proof of ownership of the seller (extract from the land register, not older than 6 months)
3. Certificate (not older than 6 months) from the county office that the property is located within the boundaries of the building district provided for in the development plan
4.  Proof of the foreign buyer's nationality (photocopy of passport) or proof of legal entity status
5. Power of attorney, if an authorised representative exists
6. Proof of paid fees in the amount of 50 kuna for the application and 100 kuna for the decision to obtain the property. A fee of 20 kuna must be paid for each amendment to the application.

Are there any exceptions to this procedure?

Yes, with the exception of all foreign nationals who live outside the EU and have already opened a company in Croatia. In this case, they do not need the Ministry's approval to purchase a property in Croatia.

How do I sell a property in Croatia?

All foreign natural and legal persons can sell their real estate located on the territory of the Republic of Croatia without any obstacles. In this case, all foreigners are equal to Croatian citizens.

How do I simplify the purchasing process?

This whole process can be simplified by hiring a real estate agency when selecting the desired property and authorising them to handle the bureaucracy for you.
A detailed table of reciprocity between Croatia and other countries can be found on the official pages of the Ministry of Justice (Maris) can be seen.

OBLIGATIONS OF THE CLIENT (PRINCIPAL)

1.  Conclude a placement contract with the agency, in writing.
2. To inform the intermediary of all circumstances that are important for the performance of the brokerage and to present the exact data of the property, if available, to give the intermediary the location, building or utilisation permit for the property that is the subject of the contract for inspection, as well as to give the intermediary proof of the fulfilment of obligations to third parties for inspection.
3. To provide the agent with the deeds proving ownership of the property or any other right in rem over the property that is the subject of the contract and to inform the agent of any registered or unregistered encumbrances on the property.
4. To ensure that the agent and third parties interested in concluding the brokered transaction can view the property.
5. To inform the agent of all important data about the property sought, including in particular the description of the property and the price.
6. After the conclusion of the mediated legal transaction, or preliminary contract, according to which the mediated legal transaction has been concluded, if the broker and the client have agreed that the right to payment of the brokerage fee is already obtained upon conclusion of the preliminary contract, pay the broker the brokerage fee, unless otherwise agreed.
7. If expressly agreed, reimburse the agent for any costs incurred during the mediation that exceed the usual mediation costs.
8. Inform the intermediary in writing of all changes related to the transaction for which he has authorised the intermediary and especially of changes related to property ownership.
9. The client is liable for damages if he has not acted in good faith, if he has acted fraudulently, if he has concealed or provided false information important for the brokerage transaction with the aim of concluding a legal transaction, he is therefore obliged to reimburse all costs incurred during the brokerage, which cannot be higher than the brokerage fee for the brokered transaction.

1. the agency's services 3% plus VAT (not included are notary and lawyer services - these are still approx. 1%)
2. it is noted that 5% property tax is paid on the property price realised.