Buyer's Guideline

How a real estate is bought in Croatia:

all the real estate properties offered are part of the legal market, have a controlled estate and legal status, and our company Svijet nekretnina d.o.o has all the necessary documents for each single unit; it helps the buyer in the search for an adequate estate and supports him during the contract and selling conditions negotiation with the seller. After an agreement has been reached, a preliminary contract about the property purchase is drawn up. In the normal activity of our agency usually occur these following three types of situation, considering the status of the buyer:

1.the buyer is a Croatian citizen;
2.the buyer is a foreign citizen who wishes to buy the estate and register it under his own name;
3.the buyer is a foreign citizen who founds a company in Croatia and wishes to buy the estate and register it under the Company's name

1.Croatian citizens buy the estates in the following way:

-drawing and signing up of the sell-and-purchase contract, the buyer becomes owner of the estate and pays the whole agreed amount to the seller (sometimes a preliminary contract can be drawn up, in which the parties agree that they will sign up a final contract eventually and the buyer pays a deposit which usually amounts 10% of the total price)

-the buyer is registered into the land register as property's owner

-within 30 days from the signing up of the contract, the buyer must by law declare his tax duties to the tax office, competent for the region where the property is located (on a prescribed form). The tax on the real estate purchase is paid based upon a unique tax rate of 5%, within 15 days from the notification date. People who buy their first real estate property and satisfy determined conditions are not subject to this last payment.

2.the buyer is a foreign citizen who wishes to buy the estate and register it under his own name. The procedure is as follows:

-in the land register a note is inserted about the mortgage right on the property in favour of the buyer

-to the Minister Of Justice a requirement for a consent in order for the buyer to be allowed to buy the estate is addressed. This consent can be required only by those citizens whose countries have signed up the reciprocity agreement with Croatia: citizens of Slovenia, Austria, UK, Canada, Sweden, Finland, Denmark, Germany, France, Netherlands, Hungary, USA, Australia, Belgium, Spain, Poland, Luxemburg and Ireland. With Italy there is a factual reciprocity status, connected to the permanent residence and an ongoing activity.

-within 30 days from the signing up of the contract, the buyer must by law declare his tax duties to the tax office, competent for the region where the property is located (on a prescribed form). The tax on the real estate purchase is paid based upon a tax rate of 5%, within 15 days from the notification date.

-after having received the consent, the foreign citizen has the right to be registered as legal owner of the property.

NOTE: Basing on the article 60. of the Agreement on stabilisation and annexation between Croatia and the EU and the member states, starting from the 4th year since its coming into force, that is 11th February 2009, to the EU citizens the same treatment in real estates purchase as there is for the Croatian citizens will be assured.

3.the buyer is a foreign citizen who founds a company in Croatia and wishes to buy the estate and register it under the Company's name. The procedure is as follows:

-he buyer founds a company (ltd.). the buyer is owner of all the company shares.

-the company draws and signs up the sell-and-purchase contract, becomes owner of the estate and pays the whole agreed amount to the seller (sometimes a preliminary contract can be drawn up, in which the parties agree that they will sign up a final contract eventually and the buyer pays a deposit which usually amounts 10% of the total price)

-he buyer is registered into the land register as property's owner

-within 30 days from the signing up of the contract, the buyer must by law declare his tax duties to the tax office, competent for the region where the property is located (on a prescribed form). The tax on the real estate purchase is paid based upon a tax rate of 5%, within 15 days from the notification date.

the company Svijet nekretnina d.o.o. remains at the disposal of their customers with a net of external consultants authorized to operate in the following branches:

-estimate of the real estate status in terms of property, quality, value
-translation of the documents into foreign languages
-elaboration of surveyors' drawings, land allotments, verification of the property borders
-elaboration of project documents, cost estimates and final balances, interior design, supervision of the construction works
-structural engineering - construction, restructuring, modifications
-accountant and financial consultant
-garden and courtyard irrigation systems and design
-letting and maintenance of the properties

The prices for the consultancies are to be discussed directly with the service providers.