Buyers Guide
CAN FOREIGN BUYERS BUY REAL ESTATE IN CROATIA?
Since 1 July 2013, when Croatia became a full member of the European Union, citizens of all EU member states have the right to buy real estate in Croatia under the same conditions as Croatian citizens.
As of 1 July 2023, the transitional period during which foreign EU citizens were prohibited from buying agricultural land expired. This allows EU citizens to buy this type of real estate as well.
However, citizens from countries outside the European Union can buy real estate in the Republic of Croatia only with the prior consent of the Ministry of Justice and Administration. Such consent is issued only if there is a principle of reciprocity, i.e. if Croatian citizens have the right to buy real estate in the applicant’s country.
Some types of real estate, such as forests and forest land, are still under a special regime and their purchase may be additionally restricted for foreign citizens.
The procedure is as follows:
When a foreign citizen decides to buy real estate in Croatia, he first concludes a purchase contract with the seller. The contract does not need to be notarized in its entirety, but the seller’s signature must be certified in order to enable the registration of ownership in the land registry.
For citizens of countries outside the European Union, after concluding the contract, it is necessary to submit an application for approval of the acquisition of ownership to the Ministry of Justice and Administration of the Republic of Croatia. Consent is issued if there is reciprocity, i.e. if Croatian citizens can acquire real estate in the applicant’s country.
Only after the Ministry issues its consent can the registration of ownership in the name of the foreign citizen in the land registry be initiated, and then the application is submitted and the real estate transfer tax is paid (or the right to exemption is exercised if there are legal requirements).
Foreign citizens who establish or already have a registered company in the Republic of Croatia (e.g. a limited liability company – d.o.o.) can purchase real estate through that company without restrictions and without the need to seek the Ministry’s consent, regardless of citizenship.
Citizens of all countries can establish a company in Croatia, which as a legal entity can freely acquire ownership of real estate, except for exceptionally protected categories of land.
HOW TO ESTABLISH A COMPANY IN CROATIA?
Foreign citizens who want to buy real estate in Croatia can also do so by establishing a limited liability company (d.o.o.), which avoids the need to obtain approval from the Ministry of Justice. As the owner of a Croatian company, a foreign citizen has the same rights as domestic legal entities, including the unlimited right to acquire real estate.
In cooperation with our expert legal team, we offer you full support in establishing a company, whether you are physically present in Croatia or not. If you are unable to come, we will send you a power of attorney that you must authenticate in your country, and we will carry out the entire procedure on your behalf.
The establishment process takes 1 to 2 weeks, and the total cost is up to €4,000, including all fees, share capital (€2,500), notary fees, bank and state fees.
Our team will guide you through all the steps: from choosing a company name, preparing documentation, opening an account and registering, to the final purchase of the property.
If you are planning to invest or buy a property in Croatia, contact us with confidence – we provide fast, reliable and professional company formation and legal advice.
HOW MUCH IS THE AMOUNT OF REAL ESTATE TRANSFER TAX IN CROATIA?
The Republic of Croatia has a single real estate transfer tax rate of 3%, which is applied to the purchase of used real estate, and is paid by the buyer. The tax is calculated based on the price from the purchase contract, but the tax authorities may conduct an assessment of the market value if they believe that the agreed price is lower than the real one.
In the case of the purchase of newly built real estate (e.g. apartments or houses sold by a construction company as a VAT payer), real estate transfer tax is not paid, but VAT is included in the price, which is:
- 25% for business premises and land
- 5% for apartments and houses that meet the conditions for the so-called first residential property (depending on area, purpose and other criteria)
In such cases, the buyer does not pay additional tax, but the tax liability is already included in the price by the seller (company).
HOW MUCH IS THE AMOUNT OF A REAL ESTATE AGENCY COMMISSION?
Real estate agent commission: 2% to 4% of the purchase price. (paid by the buyer).
Notary fees, legal fees, translators, company formation: approx. 1% -3% (paid by the buyer).
If someone offers you a lower price for that service, you need to be careful, because there is probably a hidden agreement with the owner or not a full service.
WHO CAN BE YOUR REAL ESTATE AGENT?
Buying real estate in Croatia can be a safe and successful process, but only if you cooperate with legal, professional and licensed brokers. Otherwise, you risk legal and financial problems, and in case of irregularities you will not have any protection.
Therefore, we advise you to check the following before making a decision to buy real estate:
What to look for
- Licensed agents and agencies
Make sure that the agency and agent you are cooperating with have valid licenses for real estate brokerage. You can check this on the official website of the Croatian Chamber of Economy (HGK). - Price differences
The same property may be advertised at different prices on different portals. Some agencies and agents artificially inflate the price without the knowledge of the seller or buyer – so always look for transparent and written offers. - Physical office of the agency
Be careful with agencies that only exist “on the internet”. A serious and legal agency has a registered office, where you can talk to agents in person and request access to documentation. - Invoices and payments
Every payment must be documented and invoiced. Do not agree to pay in cash without an invoice, in case of problems you have no legal protection or proof of payment.
Our guarantee: Lowest prices and complete transparency
With us you are 100% protected! We guarantee you the lowest real estate prices on the market. If you find the same property offered by another legal agency at a lower price, our services will be completely free of charge for you.
We will help you understand the difference between real and inflated prices, using concrete examples from practice, whether it concerns properties from our site or those that are not publicly advertised.
Free verification of properties and agencies
If you find a property on the Croatian coast through another website, send us the link or information. Our team will check for free:
- whether the agency is legally registered
- whether the price is realistic and without hidden costs
- whether the property is legally clear for sale
Protect yourself from unnecessary risks. Our experienced team of lawyers and licensed agents is at your disposal throughout the entire purchase process.