FAQ

Croatia is famous for its picturesque coasts, breathtaking islands, and rich cultural heritage. A holiday house in Croatia can offer a quiet getaway, prospective rental income, and long-term investment opportunities. Purchasing a holiday house in Croatia offers various advantages.
First and foremost, it provides an ideal vacation destination with magnificent beaches, crystal-clear waters, and scenic villages. Croatia is well-known for its Mediterranean appeal, excellent cuisine, and a variety of tourist and natural beauty alternatives. It is an appealing and popular resort because of its proximity to major European cities and the numerous airline lines that connect it to Croatia.
Second, purchasing a holiday house in Croatia might be a wise investment decision. Croatia's real estate market has expanded in recent years, attracting more international purchasers. The value of houses, apartments, and plots in Croatia is continuously increasing, and forecasts indicate that this trend will continue. 
Third, buying a holiday property in Croatia is a simple and safe process if you are working with an experienced real estate agent and a reputable local lawyer. 
Finally, real estate in Croatia can be rented out for tourism purposes, generating additional revenue. A property in Dalmatia especially provides an excellent place for an accommodation business for travellers to enjoy the sunny weather and many options to spend a wonderful vacation. Also it is a great place to reside, making it ideal for digital nomads who can work remotely while enjoying the warm, clear Adriatic Sea, wild nature, sun, climate, and lifestyle.

The Istrian Peninsula, the Dalmatian Coast, and Zagreb, the country's capital, are the most sought-after locations for holiday house purchases in Croatia. The Dalmatian Coast, especially the Split area, is quite popular with tourists because of its beautiful scenery, and stunning natural beauty with many bigger islands close by, historic charm, modern comforts, and fantastic food. Furthermore, Dalmatia boasts with Mediterranean climate with mostly sunny days, which is not available in the northern coastal part. The Istrian Peninsula is a popular destination for travellers seeking cultural experiences due to its well-known Italian-influenced architecture and food. The interior of Slavonia and the capital city of Zagreb offer a more authentic Croatian experience and are frequently less expensive than coastal destinations, even though they might not have the same rental potential as tourist-heavy areas.

Search online for real estate agencies which specialize in the vacation home market and have experience working with international buyers. Intricacies of this market require an experienced and locally present agent to guide you in your searching and buying process. You can also check online reviews and ratings, and you might verify their credentials – ensuring that the agent is licenced and has good reputation in the industry. 
Since new laws went into effect in 2007, real estate agents are required to be registered with the Chamber of Commerce. By registering, you may be guaranteed that the agent upholds professional standards and is responsible.
A competent real estate agent should also be knowledgeable about local laws and regulations and have experience in the Croatian real estate market. In addition, an experienced agent has a vast network of people hence they are able to help you navigate other property-related services including property management, finding a good trustworthy lawyer, obtain energy-efficient certifications, getting access to interior and architectural designers, building and legalization specialists, and more.

When buying a property in Croatia with the help of a local agent, the process typically involves the following steps:
1. Finding a property: a local real estate agent who is familiar with the Croatian real estate market can help you select relevant properties that match your requirements and planned budget. Also, a good agent will help you successfully bridge your expectations and the specifics of the Croatian market.
2. Negotiations: Once a suitable property is defined, negotiations take place in regards to the price and other conditions of the purchase. After reaching an agreement, a reputable local lawyer is hired to perform a due diligence and draft the contract. Once both parties agree upon the contract draft, both parties sign the final document. The seller’s signature must be verified by a notary public.
3. Payment: Upon signing, the document is delivered to the buyer’s lawyer who then registers the signed contract at the Land registry. This secures the property for the buyer and it is a very important part of the purchase process and one of the crucial safety elements. The buyer then has to proceed to the payment directly to the seller’s bank account.
4. Final step: Once the money has reached the seller’s account, the seller issues a Tabular statement in which it is stated the price has been paid in full and the seller allows the inscription of the new owner in the title deed of the Land registry. The Tabular statement has to be signed in front of the notary public. This document is then given to the buyer’s lawyer who registers it with the Land registry. At this point the purchase process has been completed.
Working closely with an experienced local agent can help you navigate potential challenges with ease.

Working with a local real estate agent when buying property in Croatia offers substantial benefits. Here are some of the key benefits:
1. Market knowledge: Local real estate brokers are well-versed in Croatian property values, market patterns, and regulatory frameworks. They can offer practical guidance and useful insights to support you in making wise and informed selections.
2. Network: Local agents have widespread networks of contacts that include government officials, attorneys, notaries public, and other agents. This can transform the buying process into a smooth one and safeguard that all required actions are completed professionally and efficiently. 
3. Language skills: A local agent is fluent in Croatian, which can be a noteworthy benefit when dealing with legal documentation, agreements, and negotiations. Such agents are capable to help interpret and clarify complex terms and conditions.
4. Negotiation skills: Experienced local agents possess strong negotiation skills to assist you in obtaining the most favourable deal for your property. Additionally, they are adept at overcoming any cultural or language obstacles that could potentially surface throughout the negotiation process.
5. Legal support: Experienced local agents have a network of reputable and experienced lawyers with expertise in real estate transactions whom they can recommend. They can also assist in guaranteeing that all legal obligations are fulfilled and that the purchasing procedure is carried out seamlessly and effectively.
6. Additional services: 1. Top-tier real estate firms in Croatia provide supplementary services connected to real estate transactions, including supervised handovers, contact to energy efficiency certification experts, connections to architects and interior designers, construction and legalization professionals, and beyond.
In general, engaging the services of a seasoned local real estate agent while purchasing property in Croatia can offer significant assistance and direction throughout the entire buying procedure, thereby guaranteeing a successful and stress-free transaction.

Foreigners are permitted to purchase property in Croatia, but there are specific restrictions and requirements that must be met. It is crucial to collaborate with a real estate agent who has a good understanding of the legal prerequisites for foreign purchasers.
The process and requirements for foreigners purchasing property in Croatia vary depending on their country of origin. EU member states, Liechtenstein, Norway, and Iceland citizens can acquire real estate in Croatia under the same conditions as Croatians, except for properties in exempted. Swiss nationals can buy properties without prior consent from the Croatian government, but they must provide a certificate of temporary residence in Croatia. For all other nationals (referred to as the third-country nationals), a reciprocity agreement between Croatia and the buyer's country is necessary. This means that Croatians must also be able to purchase real estate in the buyer's country. The acquisition of property is conditioned upon consent of the Ministry of Justice.

The expenses linked to purchasing a property in Croatia encompass property taxes, transfer taxes, realtor commission, notary fees, and legal fees. These expenses may fluctuate based on the property's location and worth.
Here is a breakdown of the costs:
1. Property Transfer Tax/Title Transfer Tax: The property transfer tax in Croatia is set at 3% of the property's sale price, and it is the buyer’s obligation to pay.
2. Real Estate Agent Commission: Estate agents charge 3% of the property's sale price as their commission, plus Added Value Tax (PDV) which is 25% in Croatia.
3. Legal Fees: Reputable local solicitors require a payment of 1% plus VAT (25%) of the property's sale price for their services, which involve conducting legal due diligence on the property, drafting the preliminary and main contracts, and registering ownership with the Land Registry.
4. Notary Fees: The notary's fee is approximately 30-50 EUR for verifying the seller’s signature on the purchase contract.
5. Interpreter Fees: If required, the cost of translation to languages other than English is around 20 EUR per page.
6. Ministry of Justice Permission: Non-EU citizens may be required to seek approval from the Ministry of Justice in order to purchase property with a minor fee.
7. Land Registrar Fee: The fee for registering the property with the Land Registry is about 20 EUR.
8. Additional Costs: Additional expenses that may arise when purchasing property in Croatia could encompass furnishing of the property, relocation costs, insurance fees, and translation services, depending upon the unique circumstances of the purchase.
9. VAT: Value Added Tax (VAT) in Croatia is set at 25% and is applicable on services provided by real estate agents and legal advisers, along with the acquisition of newly built apartments from companies.
In Croatia, the expenses linked to purchasing a property can fluctuate based on factors such as the property's value, its location, and the necessary services throughout the transaction. Prospective buyers should take these costs into account and include them in their budget before making a decision to buy a property in Croatia.

All property owners in Croatia have to pay a monthly invoice of communal fees, which are calculated based on the square meter size of the property and the amount is dependent on a municipality. Owners of holiday homes pay additional tax in the amount of 2-5 EUR per square meter annually. When selling a property, the seller is required to pay Capital Gains Tax (CGT) at a rate of 24% on the difference between the sale price and the original purchase price only if the property is sold within the first 2 years of ownership. If a property is rented out, the income is subject to income tax, which ranges from 20% to 40%. When purchasing property, there is a property transfer tax rate of 3% for properties bought from a seller who is not a VAT taxpayer. 
However, if the property is new and sold by a VAT taxpayer, the transfer tax rate is 0%, and the price of the property includes the VAT.

Croatia's real estate sector has experienced significant growth in the past few years, attracting more attention from foreign investors. Nevertheless, this market is susceptible to influences like economic fluctuations, political uncertainties, and shifts in tourism patterns.
The Croatian real estate market for primary residences is currently facing a slowdown in growth, as property prices reaching their peak in 2023. Factors like inflation, the transition to the euro, and rising interest rates are causing uncertainty in the locally oriented market, making it tough for many Croatian to purchase their own homes. Despite these challenges on the local market, there is still a high demand for second home properties in coastal regions, leading to a shortage of available houses and plots.
Croatia's real estate market continuous to be a popular investment destination for foreign buyers looking for a solid profit margin if they decide to resell or rent out their properties.

The legal requirements for buying a property in Croatia differ based on the buyer's nationality and the specific type of property being acquired. Below are the essential legal requirements
1. Croatian Citizens: Croatian citizens have the right to purchase all types of property, including agricultural land, without restrictions.
2. EU/EEA and Swiss Citizens: Individuals from EU/EEA member states and legal entities from these countries are eligible to obtain ownership rights under the same conditions as Croatians, except for properties in exempted areas. Swiss citizens are also able to acquire ownership rights following the same regulations as EU/EEA citizens, with the additional requirement of providing evidence of temporary residency when submitting an application to the land registry.
3. Non-EU/EEA Citizens: Non-European Union/European Economic Area citizens have the opportunity to obtain the right of ownership through reciprocity agreements established between Croatia and their respective home countries. The Ministry of Justice thoroughly examines the existing reciprocity agreements, and it is mandatory to obtain approval before the purchase can be completed. The approval procedure typically lasts between two to six months.
4. Property Types: Properties in Croatia are divided into residential properties/business properties and agricultural land/forest land. It is useful to understand the rules and best practices for each property type before making a purchase. Third-country are not allowed to purchase agricultural land. 
5. Company Ownership: Purchasing real estate via a Croatian company is a viable choice, particularly for individuals who are not citizens of the European Union. This approach can streamline the ownership procedure and offer specific benefits. Nevertheless, forming a company involves additional costs and ongoing obligations, such as company tax and accountant fees.

It is possible to send money to Croatia using a bank wire transfer or other secure payment options. It is crucial to collaborate with a trustworthy financial institution and to understand any exchange rate charges or taxes. Croatia is in Euro zone, hence if your funds are in Euros there will be no exchange rate. Adhering to both Croatian laws and regulations from your home country is vital when dealing with international money transfers, as you might be required to provide transaction-related documents to your bank.

Common issues with buying a property in Croatia include:
1. Zoning and Urban Planning Issues: These issues can arise due to changes in zoning regulations that happen on a Municipality levels. Sometimes, there may be a waiting period before a zone plan can be implemented due to certain aspects of the process being incomplete or disagreements surrounding it.
2. Property Title Issues: Unclear property ownership, encumbrances, or liens on the property can give rise to these issues, making the buying process complex and potentially resulting in legal disputes. Nevertheless, partnering with a knowledgeable real estate agent can help you steer clear of these problems.
3. Language Barrier: Not all sellers may speak English fluently, which can create a challenge in the negotiations process and legal proceedings. This issue is averted by working with a seasoned local real estate agent.
4. Taxes and Fees: Buyers should be aware of the various taxes and fees associated with property transactions in Croatia, including property transfer tax (3%), agents commission (3%+VAT), notary fees (about 50 EUR), and legal fees (1%+VAT).
5. Legal Ownership of Property by Foreign Nationals: Foreign citizens might encounter specific limitations or prerequisites when purchasing real estate in Croatia, based on their nationality.
6. Paperwork and Legal Complexities: The process of purchasing property in Croatia can be intricate and time-consuming, involving a substantial amount of paperwork and legal obligations that may prove difficult to navigate without the guidance of a professional. When working with a reputable local real estate agent, this process is smooth and easy to understand.
7. Finding a Reputable Lawyer: It is crucial to work with an experienced, local lawyer who is well-versed in Croatian real estate and title regulations and has ample experience in dealing with international buyers when acquiring properties in this region. It helps navigate legal intricacies and guarantees a seamless transaction. An experienced local real estate agent can provide valuable guidance in selecting a suitable local lawyer whose references can be checked.
8. Purchasing Property Through a Company: Purchasing real estate through a company can provide advantages like safeguarding against liability and possible tax benefits. However, it is essential to understand the legal and financial consequences of this choice.

You can ensure the property is in good condition by hiring a local structural engineer or architect to perform a property inspection and review any available building permits or certificates.

The rental regulations in Croatia vary depending on whether you rent to tourists or to long term tenants and dependent upon how you buy your property (as a private person or as a limited company). And if as a private person then upon your nationality U/ tax residency status also. So, it's important to consult with a local expert and to be aware of all legal requirements or restrictions.
The basic requirement for tourist rentals is for the owner to obtain a rental license.  This is not needed for long term tenancy rentals.  
Non-residents EU citizens must enter the Croatian VAT system in order to rent, and employ a local book keeper to handle their VAT accounts.
Non-resident non-EU citizens have 3 options – they can establish a limited company in order to buy their property and their company will apply for the rental license. They can establish a sole tradership (Obrt) and do the same. Or they can enter into a tenancy contract with a Croatian rental management company and this company will obtain the rental license and rent on their behalf.
An experienced local agent would be able to provide contacts for suitable property management companies which would navigate you through the process.

There are two different ways to manage a rental property in Croatia. The most stress-free approach for foreign owners is to hire a good local property management company. Otherwise, one can rent using a rental platform and manage the property by oneself. It's important to be aware of the local regulations and to provide high-quality services to your tourists.

The costs associated with maintaining a property in Croatia can vary based on the specific services required and the extent of maintenance needed. Property management and maintenance services in Croatia encompass a range of tasks such as key holding, regular inspections, emergency visits, mail handling, basic translation services, bill payments, outdoor cleaning, appliance testing, plumbing checks, repair coordination, service procurement, and monthly reporting. In addition to property maintenance, other expenses to consider include electricity and water charges based on usage, monthly communal fees calculated per square meter and varying by municipality, as well as an annual holiday home tax ranging from 2 to 5 EUR per square meter.

The seller must provide us with all essential documentation and information, such as the cadastre and land registry number, title deed, legalisation papers, usage permit, floor plans, energy certificate, and power of attorney (if required). It is crucial to confirm that the property has a clean title and is free from any legal disputes or encumbrances. We will carefully examine the property's ownership history and legal aspects. The seller should ensure the property is well-maintained before capturing images and videos, including decluttering, thorough cleaning, and necessary repairs. Drawing from our vast experience, we can offer a realistic price estimate for the property. Lastly, to ensure a successful and profitable sale the seller should be open to some negotiations regarding the price with potential buyers.

When it comes to selling a property in Croatia, it is important to take into account the tax implications. For individuals selling their property, if they have owned it for more than two years, there will be no tax on any profit made from the sale. However, if the property is sold within the first two years of ownership, a "Capital gains tax" of 24% must be paid on the profit. It is worth noting that this tax is not applicable if the property has been used solely as a private residence by the seller or their close family during this time period. In the case of properties bought "off plan," the two-year period starts from the issuance of the usage permit, not from the date of purchase. Developers who sell three or more similar properties within a five-year period also have tax liabilities. Companies selling properties are subject to different tax rules. 

Yes, it is possible to negotiate the price of a property in Croatia, depending on various factors such as the seller's circumstances and the current market conditions. To ensure a successful negotiation, it is crucial to collaborate with a real estate agent who possesses extensive experience in negotiating prices within the local market.
During the negotiation process, it is important to take into account several factors including the type and location of the property, prevailing market conditions, and the seller's willingness to sell. Additionally, it is advisable to carefully consider the suggestions provided by your agent. Generally, older houses tend to be more flexible in terms of negotiation compared to newly constructed properties.
Once a final price has been agreed upon, it is essential to follow your agent's recommendations regarding the selection of a competent local lawyer. This lawyer will play a vital role in reviewing the necessary documents, proposing an appropriate contract structure, and facilitating the completion of the contracts. It is highly recommended to engage the services of a reputable local lawyer who specializes in real estate sales within the specific area. Their expertise will ensure that the purchase contract is legally sound and that the transfer of property ownership is executed accurately.
By collaborating with a reputable real estate agent and a professional local lawyer, you can be confident in obtaining the best possible price and terms for your property purchase in Croatia. This will ensure a smooth and secure purchasing process.

When buying a property in Croatia, it's important to be aware of the local customs and traditions, such as the importance of personal relationships, the role of family, and the value of hospitality. Also, it is not unusual for a property to have several co-owners due to inheritance laws and family traditions. This can complicate the buying process significantly, as each co-owner has legal rights and must agree to the sale for it to proceed legally. When buying property in Croatia, especially as a foreigner, it is important to be aware of the legalization of illegally constructed buildings, particularly in popular tourist destinations. Your real estate agent and the lawyer will pay attention that this process has been done fully and according to the regulations. 
Croatia has a rich cultural heritage, with certain properties designated as cultural heritage sites, subjecting them to strict renovation limitations, in which case one has to work with the Conservationist office to ensure the requirements are met throughout the renovation process.