Here 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
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
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
ARE FOREIGN CITIZENS ENTITLED TO SELL REAL ESTATES IN
natural or legal persons can without any problems sell
real estates in Croatia.
WHAT IS THE REAL ESTATE PURCHASE TAX IN CROATIA ?
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 upon this.
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 ?
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
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
MUST THE CUSTOMER (ALONG WITH THE SELLER) HAVE TO
VERIFY HIS SIGNATURE ON THE SALES CONTRACT ?
He may, but
HOW MUCH DOWN PAYMENT SHOULD BE PAID AT THE CONCLUSION
OF A SALES PRE-CONTRACT OR CONTRACT ?
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
Yes, In 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
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 payment