Croatia has a well established institutional and legal framework which is harmonized with European standards. As in all countries the buying and selling of properties in Croatia follows rules, regulations and procedures that are specific to this country, ingrained not only in its legal and commercial practice but also in the local culture.

Once Adriatic Riviera has assisted you in finding the right property and price has been agreed it is important to appoint a solicitor. While we can advise on various legal and tax issues we would strongly suggest that you employ your own solicitor and we can assist you in finding a suitable one. The solicitor will formalize the pre-contract and final contract which will determine the price, deposit and completion date and any other conditions deemed necessary.

He will also check that the appropriate documentation is in order, and that there are no outstanding fees, taxes and debts on the property up to the official date of purchase. At this stage we can help you to obtain a written survey and translate that survey in English if need be. If the surveyor's report is satisfactory the pre-contract can be signed. The pre-contract is based on a non refundable deposit which by law amounts to between 10% and 15% of the agreed price of the property.

If after signing the pre-contract the vendor does not proceed you are entitled to a refund of twice your deposit. On the date agreed the two sides meet and sign final contract and finalize the transaction.

There are two ways of purchasing property in Croatia if you are a foreign national as a private person or by forming a limited company.

If you wish to buy the property as a private individual it is essential to obtain the authorization from the Ministry of Foreign Affairs of the Republic of Croatia. This is a straightforward procedure that usually takes 6 months but can take longer. During this period it is possible to complete the purchase and an official entry noting the purchase of the property is made by your appointed solicitor in the Land Registry Office. While awaiting approval you can take up residence or sell the property if you wish to do so.

Mortgages are not available in Croatia at this stage for foreign nationals - we recommend you to seek advice from your financial advisors.

Another method of buying a property in Croatia is to establish a company. This company will have the same rights, obligations and legal status as any domestic company and it will be entirely owned and controlled by you. Your solicitor will form a limited company on your behalf and your company can then purchase property without authorization from the Ministry of Foreign Affairs. This procedure takes up to four weeks but it does incur costs of forming and later on of maintaining the company.

Your newly formed Croatian company can avail of mortgages/loans from some European banks operating in Croatia but deposit, interest rate and repayment periods are quite conservative.

More detailed information about the buying procedures is available on request.

Initial Purchase Costs

- 5% Real Estate Transfer Tax (Stamp Duty)
- 1.5% to 2% solicitor's fee
- estate agent's fee