Frequently asked questions

Are foreign nationals entitled to purchase property in Croatia?
YES. There are essentially 2 ways of how to purchase property.
1. As a private individual. This however is conditional upon consent being granted by the Ministry of legal affairs and the Ministry of foreign affairs. 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. Most EU countries have this agreement with Croatia. The procedure of obtaining the statement on consent is as follows: When a foreign citizen decides to purchase real estate in Croatia, a sales contract is signed with the selling party. This contract, together with other relevant documents are sent to the Ministry of foreign affairs in Zagreb. When the Ministry issues to the customer its statement on consent, the foreign citizen is entitled to register the real estate onto his name at the Municipal court -Cadastry department. This consent from the Ministry normally takes between 6 months to 2 years to obtain. In the mean time, the sale goes ahead and the new owner is provisionally written into the Cadastry department registry with the stipulation that consent is being sought from the Foreign Ministry. The new owner is also covered in the contract that in the event that consent is not granted, the applicant may choose to file another application in another name or has right to rental for 99 years OR may sell the property on. However,it is expected that this law requiring the consent from the Foreign Ministry, will be scrapped in the very near future.
2. As a company.Foreign nationals that establish, or already have established a company in Croatia, can purchase property on behalf of that company. This company is normally in the form of a limited liability Company.
Are foreign nationals entitled to sell property in Croatia?
YES. Foreign private individuals or legal entities can sell property in Croatia without restriction.
What is the tax paid on property?
There is a one-off purchase tax of 5% on all types of property.The tax charged is based on the price of the property in the sales contract.As a rule this tax is paid by the purchaser.
When must this property tax be paid?
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. If this tax is not paid within this term, interest on arrears are charged for every day of delayed payment.
Please note that in the case of a purchase by a private individual the conclusion of the sales contract will be at such a time when permission has been granted from the ministry of foreign affairs.
Does the seller have to pay taxes when selling his property?
NO. Only when the property is sold within a three year period and also if sold at a higher price than originally purchased. In such a case the seller must to pay a 35% income tax on the difference in value of the property (purchase and sales price)..
What is the procedure when buying property in Croatia?
As a first step, it is best to secure the property with a minimum deposit equal to 10% of the purchase price. This is the minimum deposit required for it to be legally recognised as a deposit. The deposit is usually paid at the signing of a pre-sales contract where it is usually stipulated what and when further installments will be paid. When the last installment is paid a sales contract is signed at a notary or in the presence of a lawyer whereupon keys are handed over to the buyer.
DO we also have to pay an annual property tax?
NO. Currently there is no additional annual property tax to be paid.