Logistics of buying property in Croatia - Vigyaa

Delete Collection?

Are you sure you want to delete this collection permanently?


Delete Collection?

Are you sure you want to delete this collection permanently?

Everyone has a Story to Tell and an Experience to Share!

Let’s Start Writing


Logistics of buying property in Croatia

If you are planning to buy property in Croatia then you need to be well versed with the laws governing the foreign ownership of the real estate in Croatia. Property boom started in Croatia from the year 2000 onward and it opened up to foreign investors who made a beeline to invest in Croatian real estate for maximum gains. European Union citizens got preference for investing in Croatia as they were able to buy the real estate on the same terms as local Croatians except for agricultural land. Sizeable numbers of foreign investors have bought commercial, multi-family residential and holiday real estate holdings over the course of the past two decades.

For property transactions in Croatia the investor must hire a competent lawyer who acts solely for him. Majority of foreign nationals investing in real estate in Croatia are the individuals who have migrated to the country for business purposes. The basic provisions of the laws governing real estate ownership by foreign nationals state that if the country of origin of the foreign citizen allows a Croatian citizen the ability to own real estate, Croatia, in turn, will allow that foreign national the ability to purchase and own real estate in Croatia.

A foreign national must obtain permission from the Croatian Ministry of Foreign affairs before investing in Croatian real estate. The Ministry must verify the ultimate ownership interests when real estate is being purchased by a foreign national. The first step in the process is the execution of a sales contract between the parties. This agreement is taken to the Ministry of Foreign Affairs together with a written petition seeking approval from the Ministry. The deed cannot be filed in the Land Books of Croatia by a foreign national without the necessary papers approving the purchase as prepared and issued by the Ministry of Foreign Affairs.

Once you buy property in Croatia you are required to make a certain deposit when the initial agreement for the purchase of property is executed. Usually, it is 10% of the overall cost of real estate. Upon approval from the Ministry of Foreign Affairs and execution of the final contract, the buyer is responsible for paying the balance amount due to the seller. Currently, the property transfer tax is 3% and the buyer is liable to pay this tax.

The change of ownership generally happens within thirty days. Value Added Tax (VAT) at present in Croatia is 25% of the property value but if you are buying a new apartment from a company, the seller will pay the VAT. In all other cases, buyer pays 4% tax on the purchase price. VAT of 25% is also charged on the services provided by both legal expert and real estate agent. Some builders and developers offer mortgage facility on their properties for sale which can be beneficial for both the parties depending on the logistics of the mortgage.           

Related Articles


Should your Organization Lease or Buy Business Land?

Are you looking for cheap office space for lease? That is an intriguing inquiry. Either owning or leasing a New York office space accompanies its very own arrangement of advantages and exchange offs.

Before you choose either alternative, make certain you cautiously think about every single included factor. Here is a complete guide for finding the cheap office space for lease.

Upfront Costs

In case you're keen on acquiring a cheap office space for lease be prepared to make a huge upfront cost, generally somewhere in the range of 10% and 25% of the all total purchase tag. Thinking about the high estimation of business land, this will be an impressive amount. The upfront expense of lease or rent will consistently be much lower.

Opportunity Costs

At the point when your organization makes a noteworthy expense of cash-flow to buy business land, that cash is no more. It can't be utilized for working costs, pay rates, promoting, and so forth.

If purchasing office space cripples your company financially, it isn't the best choice. A long-term investment is worthless if it cripples your association for the time being. In such cases, an alternate type of speculation will probably serve your business much better.

Planning Business Expenses in the Long Term

In reality, paying rent on a space is a lot less expensive in the short run, however relying upon the market it can turn out to be pricey later on. It the market patterns run upward you may end up burdened with gigantic lease increments when it's an ideal opportunity to renegotiate your lease.

Conversely, acquiring commercial real estate will lock in your payment into the future, permitting you to make long-term financial plans with a smart thought of your overhead.

Is your Organization Getting Smaller or Larger?

If you are a young organization hoping to develop or an established business planning to increase to build your capability, you'll need adaptability in your commercial office space.

You'll need space to grow. Considering the cost of extra area in the place of business, acquiring an office space with space to develop may be cost restrictive. In these cases, prescribe that you rent cheap office space for lease, which will enable a lot more opportunity to extend toward the part of the arrangement term.

The Real Cost of Owning Goes far Beyond Mortgage Payments

At the point when your organization decides to buy commercial land, make sure to contemplate every related expense. There will be maintenance charges, fees, taxes, development expenses and more. Crises occur and you won't most likely arrangement for everything. Cheap office space for lease will reduce your financial liability.

Reference Image