Home Property in Croatia
How to buy a house in Croatia?
Here you will find the detailed information about real estate purchasing in Croatia:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Croatia;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Croatia and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
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Real estate market in Croatia is permanently growing due to such factors as increasing interest from buyers and European investors, constant real estate development, and very strict housing legislation.
Prices for property in Croatia haven’t fallen much in 2013, even in spite of global financial crisis. Nevertheless, local real estate can be purchased for a quite affordable price. For example, a 30 sq. m. apartment in Istria region is worth €55 000. A cheap 50 sq. m. apartment in Zagreb costs around €57 000. The price for a 108 sq. m. house in Vodnjan city is €50 000. While a 200 sq. m. country house in Split region goes for some €60 000.
Wealthy clients prefer purchasing property in southern Croatia, as well as in large cities and resort zones close to the sea. For example, a 490 sq. m. apartment in Split costs €1 300 000, while a premium 150 sq. m. apartment in Croatian Littoral can be purchased for €550 000. A prestigious 470 sq. m. villa in the city of Trogir costs around €900 000. A 650 sq. m house in Split is worth €1 100 000. The price for a luxurious 700 sq. m. villa in Dubrovnik amounts to €5 000 000.
Investors often set their eyes on commercial segment of Croatian real estate market. A small 40 sq. m. shop in Zagreb costs €70 000, while a 100 sq. m. office is worth €230 000. A 400 sq. m. hotel in Dubrovnik goes for €700 000. A prestigious 1300 sq. m. hotel in Lovran can be purchased for nearly €5 500 000.
Let’s find out how to purchase real estate in Croatia.
Signing a preliminary agreement
Preliminary agreement should contain key information on every principal aspect of the deal: banking information of the parties, terms of payment, monetary exchange rate, object description, payment currency, etc.
Upon signing a preliminary agreement, buyer should pay a 10–15 % deposit of property value. After that, if buyer decides to cancel the agreement, he or she will lose the whole deposit. In case it is the seller, who cancels the agreement, he or she will have to pay back twice the deposit amount.
Most of real estate on the market is already assessed and approved; however, before signing the principal agreement, it is advised to inspect the object with regard to the following criteria: property information, information about the current owner, and the encumbrances (debts, mortgage, litigations, and inheritance cases), if any. Property assessment is to be performed on the official website of Croatian Ministry of Justice, in the “Land register” section.
Signing a principal sale and purchase agreement
First, a lawyer has to draft a principal sale and purchase agreement. A notary has to witness agreement execution and handle all litigations related to transaction. The next step is for the buyer to pay the remaining amount of property value. It should be transferred from a bank account of a registered Croatian company. Since private individuals and legal entities registered in Russian Federation are not able to purchase Croatian real property, it is necessary for them to register a legal entity in Croatia in order to do so.
Acquiring ownership rights
The next step is property registration in Croatia. Real estate title registration is performed in a communal court (local body on legal matters). Eventually, new owner gets the certificate of title, confirming ownership transfer. In order to complete property registration in Croatia, buyer should pay a 5 % transfer tax within a month.
Property investments in Croatia are liable to the following taxes and duties:
- real estate tax in Croatia – 5 % of evaluated property price, as of 2013;
- lawyer fee – around €3000;
- notary fee – 1 % of property value;
- property registration in the cadastral register – 0.01–0.05 %;
- real estate agent fee – 6 % of transaction amount (split between buyer and seller). archived version