When purchasing real estate particular care should be taken with respect to legal norms procedures. In order to assist our buyers purchasing real estate in the following text we entail all the necessary information based on the Real Estate Act for Croatia.
SPECIFIC INFORMATION REGARDING REAL ESTATE IN CROATIA
In the Republic of Croatia, any person with Croatian citizenship and in possession of a certificate of nationality, passport or personal identification card can purchase real estate. Base on the Private Ownership and Other Legal Entities Act foreigners as of 1/1/1995 are permitted to purchase real estate in the Republic of Croatia. The only condition allowing foreigners the right to purchase real estate is the existence of mutuality, i.e. the principle of reciprocity between the Republic of Croatia and the foreigner's country of residence. This basically means that the country of origin of the potential buyer, recognises Croatian citizens the right to acquire real estate in that country. All information relating to the principle of reciprocity can be obtained from the Ministry of Internal Affairs of the Republic of Croatia on tel: (01) 4598035. After confirming mutuality, the Ministry of Internal Affairs along with a ruling by the Ministry of Justice offers permission for the acquirement of property, and consequently, the foreigner can thereafter purchase property in the Republic of Croatia.
Those foreigners whose countries have not ratified a mutuality agreement with the Republic of Croatia, can purchase real estate in the Republic of Croatia only if they own a registered company in the Republic of Croatia and the real estate is purchased on behalf of the company.
Based on the above mentioned, the party must initiate a procedure for receiving approval, personally or through a plenipotentiary, by submitting a request in the Croatian language forwarded directly to the Ministry of Foreign Affairs, Department of Consulate Affairs, Meduliceva 34, 10000 Zagreb. The request must included the following:
In compliance with tar. number 7.a. Administrative Fees Act (Official Gazette no. 8/96, 77/96, 163/03), the person submitting the request for acquiring ownership of property must pay the following administrative fees:
- Basis upon which private ownership is sought (purchasing contract, endowment contract or as such), original and or certified copy.
- Proof that the owner/seller is in fact the owner of property (statement from the land title books or as such), original not older than 6 months.
- Certificate/Confirmation by the respective government institute authorised for the urban planning that the property is question is located within the bounds of the construction zone in compliance with the town planning documentation, original not older than 6 months.
- Proof of citizenship of the buyer (certified copy of passport), original or certified copy.
- Full authorisation (if plenipotentiary), original or certified copy.
- One certified copy of all documents submitted with the request.
Administrative fees amounting to 100kn are paid in terms of government stamps, in the respective monetary amount, while amounts exceeding 100kn are paid via invoice onto the account for Government Budget of Republic of Croatia no. 1001005-1863000160
Evidence of paid fee, copy of invoice is sent to Ministry
- 50kn for the request
- 100kn for a ruling
- 20kn for every eventual additional to the request
SPECIFIC INFORMATION REGARDING SELLING REAL ESTATE IN FOREIGHN OWNERSHIP IN CROATIA
All private foreign legal and physical persons can sell real estate in the Republic of Croatia.
Contracts are as a rule certified in Croatian embassies or consulates. In so much as the contract is certified by a justice of the peace, it must be translated in Croatian by a certified court interpreter.
- Contract Outside of Croatia
Taxes on Real Estate
Real estate taxes amount to 5%, the amount based on the selling price or estimated property value. The real estate tax is paid by one of the contracted parties.
Paying Taxes on Real Estate
The buyer must submit the certified selling contract to the Tax Department within 30 days from the date of signing the contract. The buyer must pay the tax liability within 15 days from receiving the assessment of taxation liability on the respective property. In so much as the tax is not paid within the specified time, the Taxation Department shall calculate and add legal interest.