How can foreigners purchase real estate properties in Croatia

Which documentation has the buyer to present when he purchases real estate property in Croatia?

Confirmation of the Croatian nationality, which is proven with certificate of citizenship, passport or ID card. A photocopy of these documents is sufficient, with simultaneous presenting of the original document.

Can foreigners purchase real estate properties in Croatia?

Yes, they can do it. They need an approval of the Ministry of Justice and Ministry of Foreign Affairs.. The approval can get the citizens of the states who have a reciprocity contract signed with Croatia, and in exceptional cases also citizens of other states.

The proceeding is:
When the foreigner decided for real estate property purchase, he signs a Sales Contract with the vendor, without the notary certification in the very moment. The Contract is sent with accompanying documentation to the Ministry of Foreign Affairs in Zagreb. After the approval, the foreigner can actually overwrite the real estate on his name and is obligated to pay taxes to the real estate. Foreigners, who have a company in Croatia, can purchase the real estate properties on the company name.

Can foreigners sell real estate properties in Coratia?

All physical and legal persons can sell real estate properties in Croatia, without limitations.

What are the taxes to real estate properties in Croatia?

In Croatia one pays unique tax of 5% to all real estate properties and all transactions. The tax is calculated on the basis of the price in the Sales Contract and according to the estimation of Revenue Office in whose area the real estate properties are placed. According to law, those taxes has to pay the buyer or the vendor in the name of the buyer, if the parties agreed in such a way.

What are the taxes in case of real estate property exchange?

5%. Each owner of the real estate property has to pay 5%, in case of the real estate property exchang.

In what period the taxes have to be paid?

After signing the final Sales Contract the buyer must announce the taxes to the responsible Revenue Office, within 30 days after the sales date mentioned in the contract. The notaries have also to send 1 copy of the Sales Contract to the Revenue Office. The buyer must pay the taxes within 15 days after the receipt of the Revenue Office decision, and after expiration of this term, interest is charged for each further day.

Does the vendor pay the tax?

No. He must only pay the tax, if he resells the real estate within 3 years after the purchase and if the price is higher than the purchasing price. In this case he must pay tax of 35% to the price difference, and this tax is increased by the additional local taxes (different in each region).

Does the buyer (together with the vendor) have to certificate his signature on the sales contract?

No, but he can do it.

What is the usual prepayment after signing the preliminary agreement or the contract?

10% of the selling price usually, or according to the agreement between the vendor and the buyer.

Can the sales contract be signed and certified abroad?

Yes. The best place to certify the Contract is Croatian diplomatic representation. If the parties certify the contract at the public notary, a certified court translator in Croatia has to translate such authentication into Croatian language.

Can taxes be paid in foreign currency?

The taxes can be paid in a bank or at the post office. Foreign currency is converted into Kuna, in which the taxes are stated, and have to be paid.