we give you the answers to FAQ concerning purchase of real estates in
the Republic of Croatia. In Croatia we have plenty of legal acts and
laws concerning traffic of real estates and in connection with real
estates in general. It is not our intention to bore you with the local
legislation, but to give short and simple answers on issues that might
be of interest to you. In case there is questions that are not contained
here, feel free to contact our agency directly.
WHICH DOCUMENTATION IS TO BE
PRESENTED BY THE CUSTOMER WHEN PURCHASING REAL ESTATES IN CROATIA!
Proof of Croatian citizenship,
either in form of citizenship certificate, passport or personal
identification card. A copy of any of the above
is accepted in case the original can be shown simultaneously.
ARE FOREIGN CITIZENS ENTITLED TO PURCHASE REAL ESTATES IN CROATIA ?
Yes, but after prior consent
issued by the Ministry of legal affairs and the Ministry of foreign
affairs. These statements on consent are issued to citizens of those
countries Croatia signed a contract on reciprocity with and in
extraordinary cases, to citizens of other countries as well. The
procedure of obtaining the statement on consent is as follows:
foreign citizen decides to purchase real estate in Croatia first a sales
contract is to be signed with the selling party. At this phase the
contract does not have to be verified before a public notary jet.
Together with respective documentation, this contract is sent to the
Ministry of foreign affairs in Zagreb. When the Ministry issues to the
customer its statement on consent, the foreign citizen is entitled to
register the real estate onto his name at the Municipal court -Cadastry
department and pays the real estate purchase tax. Foreign citizens that
establish, or already have an established company in Croatia, can
purchase real estates on behalf of this company.
ARE FOREIGN CITIZENS ENTITLED TO SELL REAL ESTATES IN CROATIA ?
Foreign natural or legal
persons can without any problems sell
real estates in Croatia.
WHAT IS THE REAL ESTATE PURCHASE TAX IN CROATIA ?
The Republic of Croatia has a
unified tax rate of 5% for all types of real estate and respective
transactions. The tax is defined based on the price of the real estate
in the sales contract and the value estimate by the authorized tax
authority in charge for the area in which the real estate is located.
According to the Law, tax on purchase of real estate is paid by the
customer or the seller on behalf of the customer, if the parties agree
WHAT IS THE TAX IN CASE OF EXCHANGE OF REAL ESTATE ?
The same, 5%, but here each of
the real estate owners pays 5% of the value of his real estate as tax.
WHEN MUST THE REAL ESTATE PURCHASE TAX BE PAID ?
After conclusion of the sales
contract the customer is obliged to register the purchase at the
authorized tax authority within 30 days from the day of conclusion of
the contract. Public notaries do also submit one copy of the sales
contract to the tax authorities. The customer is obliged to pay
respective real estate purchase tax within 15 days from the day of
reception of the decision received from the tax authorities on the exact
tax amount. If this tax is not paid within this term, interest on
arrears are charged for every day of delayed payment.
DOES THE SELLER HAVE TO PAY TAXES WHEN SELLING HIS REAL ESTATE ?
No. Only in case the real
estate is sold prior to the expiration of three years after it has been
purchased and if sold at higher price than originally purchased. In such
a case the seller has to pay a 35% income tax on the difference in value
of the real estate (purchase and sales price) increased for local taxes,
different in every municipality.
MUST THE CUSTOMER (ALONG WITH THE SELLER) HAVE TO VERIFY HIS SIGNATURE
ON THE SALES CONTRACT ?
He may, but must not.
HOW MUCH DOWN PAYMENT SHOULD BE PAID AT THE CONCLUSION OF A SALES
PRE-CONTRACT OR CONTRACT ?
Usually the down-payment is 10%
of the sales price or
different if agreed so between the contractual parties.
IS IT POSSIBLE TO CONCLUDE AND VERIFY A SALES CONTRACT ABROAD ?
such a case it is the best to have it verified in a Croatian
embassy or consulate. If you verify such a contract before a public
notary, then this verification has
to be translated into Croatian by an appointed courts interpreter
IS IT POSSIBLE TO PAY THE REAL ESTATE PURCHASE TAX IN FOREIGN CURRENCY ?
The tax is to be paid by bank
or post office money transfer. The amount is converted into Kuna at the
middle exchange rate by the National bank of Croatia at the day of