How to Buy Property in Croatia
Sometimes you may need to be patient, as getting the necessary permission to buy a property in Croatia can take up to a few months in some cases.
In straightforward cases the purchase process can take no longer than a couple of weeks from start to finish. However in some cases it can take longer due to the fact you need some extra authorisation. When properties are considered part of a town’s heritage (similar to listed status) you need some special documents to become the owner of a cultural property. Older, historic buildings sometimes fall under this.
Non-nationals are not able to purchase agricultural land until 1st July 2020, but it can be bought through a company registered in Croatia. We can explain this in detail and guide you through the process. The European Commission will reconsider this ban with an aim abolishing it in 2016.
EU membership has brought Croatia into alignment with the rest of the bloc. There is a new law in Croatia stipulating the need for property owners to hold an energy efficiency certificate in order to sell.
In most property purchases you will be required to give a 10 per cent deposit along with the preliminary contract. Otherwise you can also sign the main contract with a deadline of a few days for payment.
The final contracts must be verified by a public notary who can also request an OIB (personal identification number in Croatia). The OIB is your fiscal number within Croatia – similar to your National Insurance number. All that can be done in one day.
Property Buying Costs in Croatia
Central Croatia charges 4 per cent of the sales price of the property you want to buy. The tax that you pay when buying the property (property tax) is 5 per cent, notary costs of around €100 and another €50 duty stamp for registering ownership. (Figures subject to change)
Notarial services for drawing up contracts depend on the value of the property.
The 5 per cent property tax is sometimes calculated just on a part of the price, especially in cases where you are buying directly from a Limited company investor. That’s because in the price is already VAT included and double taxation is not allowed.
When you are buying from an individual owner you will pay always 5 per cent on total amount (VAT cannot be added on top). There is no double taxation and property tax is calculated on the whole amount.
* Croatian bureaucracy has a bad reputation for inefficiency and for delaying your application if you make the smallest of mistakes. Central Croatia offers you a full service and we will be delighted to help you through the procedure.
* As mentioned above, Croatia is working hard to become a regulated country and to legalise construction but it is advisable to get expert guidance from Central Croatia rather than try to navigate the market alone.