How Foreigners Can Buy Property in Croatia

Over the past two decades, Croatia has become a preferred destination for foreign real estate investments. Croatia’s exotic landscape of natural beauty, peaceful surroundings, and mild Mediterranean climate attract overseas investors who want to buy Croatian property to lead a peaceful retirement life in this Mediterranean paradise or to build a vacation home to spend quality time with their family and friends.

The Process of Buying Property in Croatia

If you are a foreign national looking for a house for sale in Croatia, you need to understand certain regulations related to buying property before investing in this beautiful country. One of the basic prerequisites for foreigners to buy property in Croatia is a reciprocity agreement between Croatia and the country whose citizen wants to buy Croatian property. The process of buying property in Croatia varies depending on the nationality of the buyer. There are different documents for EU citizens and non-EU citizens.

Foreign nationals must obtain prior approval from the Ministry of Justice before investing in property in Croatia. Overseas investors can take an alternative route by establishing a company in Croatia. They can purchase real estate in the name of that company and receive tax relief on the income received from renting out the property. A 3% real estate transfer tax is calculated on the total sales price stated in the contract. Foreign citizens investing in Croatian real estate are required to obtain a land registry extract consisting of a title deed, a building permit for a new building and an energy certificate.

Requirements for EU and Non-Eu Citizens

EU citizens can purchase a residential property in Croatia under the same conditions as Croatian citizens, but the Agricultural Land Act stipulates that foreign citizens cannot become owners of agricultural land in Croatia. To register ownership, in addition to the purchase contract, EU citizens must obtain a proposal for registration, a certified sales statement from the seller and proof of the buyer’s citizenship. For foreign citizens outside the EU, the process of purchasing Croatian real estate is more complicated as it involves a lot of additional documentation in addition to the consent of the Ministry of Justice.