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Purchase procedure

Purchase procedure & expenses in Croatia

There are two options open to foreigners wishing to purchase in Croatia.  In both cases a buyer must pay an additional 5% real estate transfer tax on the purchase.

Foreign individuals are entitled to purchase properties in Croatia according to the system of reciprocity.  This exists between Croatia and most European countries.

NON-EU residents must apply for permission to purchase from the Croatian Ministry of Justice.  This is a formality that requires 8 months to 18 months.  Applications are not refused unless the individual has an adverse history with relation to Croatia.

Individuals can complete all purchase procedures before applying for this permission including full payment for the property.  They may also move into and use the property while they wait for permission.  In the unlikely event that permission is refused then individuals have a right to open a company to make the purchase instead (see corporate purchase).
We recommend this route to those buyers who do not intend to make further significant investment in their properties and who do not intend to sell on their properties within 36 months, or rent the property as a holiday home to the general public.

Individuals are not permitted to purchase agricultural land or industrial buildings.
 
Company purchase:
A foreign individual may choose to open a Croatian company in order to make a purchase. This individual is entitled to be the sole shareholder of the company.

Following incorporation the company must engage the services of a bookkeeper to keep monthly accounts.

We recommend the corporate purchase route to those buyers wishing to make significant further investment in their property or buyers wishing to receive rental income.

Foreign-owned Croatian companies are recognised as Croatian entities and afforded the same rights as locally-owned firms.

Individuals purchasing via a company can complete their purchase immediately without applying for permission from the Ministry of Justice.

The incorporation process is relatively simple.   It takes 4 to 6 weeks and costs around 1,000 Euro. There is the additional requirement to deposit circa.2,800 Euro as invested capital in the company.  This can be used to pay for company expenses.

Individuals are required to be present only on the day they start the incorporation process. All subsequent formalities can be arranged in their absence through our agency.

Each individual must supply a copy of his passport and address to begin the process.

Private Purchase Costs:

1.    3.% Real Estate Agency commission ( plus VAT) – payable on date of completion of sale, or as otherwise agreed.
2.    5% Purchase Tax – based on purchase price of property (similar to Stamp Duty in England)
3.    Legal fees (lawyer) – between 0.8 – 1.5% of purchase price.  This fee varies according to the complexity of the sale.  The lawyer will need a copy of your passport to obtain the passport no., date of birth, date and place of issue and also your home address.
4.    In addition to the above, the lawyer may ask you to pay a one-off charge to cover your application for permission to buy from the Ministry of Justice in Croatia.  This will vary from 200 - 500 euros, depending on lawyer and number of applicants.
5.    Expect to pay a 10% min. deposit of the purchase price to secure the sale.


Purchasing a property through your Croatian owned company

1.    3.% Real Estate Agency commission (plus VAT) – payable on date of completion of sale, or as otherwise agreed.
2.    5% Purchase Tax – based on purchase price of property (similar to Stamp Duty in England).
3.    Legal fees (lawyer) – between 0.8 – 1.5% of purchase price.  This fee varies according to the complexity of the sale.  The lawyer will need a copy of your passport to obtain the passport no., date of birth, date and place of issue and also your home address.
4.    In addition to the above, the lawyer will ask you to pay a one-off charge of approx. 500 Euros for setting-up your Croatian company.  You will also need to state what type of business the company will operate.
5.    An official translator is required to translate Croatian legal documents to you during the set-up procedure for your company.  This is approx. 600kn (100 Euros).
6.    Public Notary charges will need to be paid.  This procedure formally registers your company in Croatia.  Cost is approx. 3500kn (500 Euros), payable on the day you see the notary.
7.    Expect to pay a 10% min. deposit of the purchase price to secure the sale.

Contact us

Mob.: 00385 (0)99 574 4174
Email:
Real estate department
Accommodation department

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