PROPERTY BUYING PROCEDURE IN CROATIA

To buy a property in any country; transparent information and thorough understanding of the whole process is essential. And that is especially if you are considering investing in the country that you are not familiar with in terms of the legal structure.

In the text bellow, we presented basics steps when considering buying a property in Croatia. Please see the text bellow and if you have any further concerns do not hesitate to contact us directly.

Step 1. Choose your agent and decide on your criteria in property search

• Decide on the area you prefer, property type and the budget you retain
• Ask your agent to send you portfolio with properties of you interest and to provide you with a brief market overview of the area you have chosen
• Book your property viewing before you decide to go ahead with the purchase

Step 2. Ask your agent to advise you which approach to take for your property purchase

There are two approaches under which you can become a property owner in Croatia:

1. You may buy property as a physical person

   To acquire a property in Croatia as physical person, you will need to obtain authorization from the Croatian Ministry of Foreign Affairs. This procedure is rather a matter of formality and is rarely declined.

   This process may take up to 6 months for the completion of all the paperwork; but you can go ahead with the purchase in the time being and be in a possession of the property.

2. You may form up a LTD company through which you will purchase the property

   There is no special requirement for Croatian shareholders; there can be 1 shareholder or more and the formalities can be completed within 3 weeks.

   An Ltd Company requires a starting capital of minimum 2,700 €, which can be recovered once the company is formed. Additionally you will need approximately 1500 € for legal costs (such as lawyer’s fee, notary fee, taxes).

   For more information on LTD companies in Croatia and its benefits please see our section with legal issues and costs or contact us directly by This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Step 3. Preliminary contract stage

• At this stage you are ready for down payment, which is usually 10% of the purchase price, and signing the pre contract drawn by your lawyer and agent
• If you are buying property as a physical person your lawyer and your agent will need to present the following documents in order to obtain the approval form the MFA:
  • Purchase agreement in the original or a duly legalized copy
  • Seller’s proof of title i.e. land registry certificate in the original or a duly legalized copy and not older than six months
  • Original certificate (not older than six months) issued by the authorities of the local administration responsible for urban planning (county departments), confirming that the property is within the construction zone according to the zoning plan
  • Proof of citizenship for the Buyer (certified copy of a passport)
  • Proof of citizenship for the Seller (a copy of his ID or passport)
  • Photo copies of all the enclosed documents
• In addition to these documents, it is also necessary to enclose the proof of payment for the administrative fees:
  • HRK 50.00 for the application
  • HRK 100.00 for deciding on property acquisition
  • HRK 20.00 for any subsequent supplement to the application (in case of incomplete application)
• If you are buying through the LDT company; that you have established and are the shareholder, the process will be faster; however the practice is that you still sign the pre contract as a physical person with a notification on the pre contract that the final contract will be signed by the company. This is to save time while you are waiting for your company documents to be competed.

Step 4. Contract

According to the set date on your pre contract, you will sign the final contract and pay off the remaining amount of the purchase price to the seller.

Step 5. Registration of Title deeds

• Your lawyer and your agent will process all documents to the cadastral and land registry for the registration of title deeds in your/your company’s name
• Also, your lawyer and your agent will send out the necessary documentation to the tax office who will calculate the amount you will be obliged to pay for the sales tax.
• The sales tax in Croatia accounts for 5% of the purchase price but is differently applied on new developments.
• For more information on the sales tax please contact us directly by This e-mail address is being protected from spambots. You need JavaScript enabled to view it .