Tips to Buy a Property in Croatia as a Foreign National

Croatia is now becoming the hot property-buying country due to fewer restrictions and high property value. But if you are foreign national and looking forward to buying a home, then you need to consider some important points.

Croatia being the leading tourist spot, there is no restriction for foreigners to invest in the property and stay. In fact, buying home in Croatia is a stress-free process and you can get the property available in different tourist locations. Since 2009, EU citizens in the Member States have received similar right as Croatian citizens when it comes to buying a property. However, there are certain rules which foreign nationals should be aware of.

Property Ownership by Foreign Nationals

Citizens of countries which are part of EU are allowed to invest in any type of property in Croatia. However, for citizens of countries other than EU, but belong to the country that has a reciprocity agreement with Croatia are eligible to invest in real estate. But need the approval from the Ministry of Foreign Affairs.

Getting permission from the Ministry of Foreign Affairs is mandatory if you are buying property in Croatia. So in case, you want a beachfront villa in Croatia, then you may have to wait for few months to get approval from the ministry. Once the permission is granted, the sale is finalized and you as a buyer can register the title.

However, if you have a company formed in Croatia and then purchase the property on company, then you may not face any kind of restriction in the process. Moreover, there is no approval needed from the ministry.

Property Buying Process

• Pre-contract agreement – Once the pre-contract between seller and buyer is ready, the buyer will have to pay 10% of the selling price.
• Proof of ownership, a certification stating that the property is within the boundaries of the construction zone, documents of the purchase agreement, buyers proof of citizenship and other documents are needed to submit to the ministry.
• Copy of the binding contract signed by the notary and details of the contract has to be registered with Municipal Cadastral Department’s Land Books along with payment of purchase tax.

If you are a foreign national and want to buy a home in Croatia, the best way is to hire an agency who can help in getting the process done and you can be stress-free. It can be time-consuming, but investing in Croatia will certainly give you long-term benefit.